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petitioner worked for the three enterprises previously discussed.
Between assignments, he was reached at home to attend to one or
more of the projects that required his services; however, he also
received assignments while he was at a work site.
Section 162(a) allows a taxpayer to deduct all ordinary and
necessary expenses paid or incurred in carrying on a trade or
business. Under section 280A, however, deductions associated
with a home office are generally disallowed unless the home
office is used exclusively and regularly as the principal place
of business of the taxpayer. Petitioner contends his home was
his principal place of business because he was required to
perform his services at three different locations. He alleges
that, because he received his orders and directions for his
services at his home, his home was, therefore, the focal point of
his activity. In addition, petitioner stored equipment used in
his activity at his home.2
Section 280A(a) provides that no deduction otherwise
allowable shall be allowed with respect to the use of a dwelling
unit which is used by the taxpayer during the taxable year as a
residence. Section 280A(c), however, provides an exception if a
portion of the residence is exclusively used on a regular basis:
2 Sec. 7491, in certain instances, places the burden of
proof upon the Commissioner. The parties have not alleged that
sec. 7491 would be applicable in this case. The Court,
nonetheless, decides this case without regard to the burden of
proof.
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Last modified: May 25, 2011