- 9 -
petitioner claims 52 percent of the area of his home was used for
business.
Section 162 generally allows a deduction for ordinary and
necessary expenses incurred in carrying on a trade or business.
Under section 280A(c)(1)(A), however, business expenses relating
to use of any portion of a taxpayer's home are not allowable
unless the taxpayer establishes that the portion of the
taxpayer's home to which the expenses relate was used exclusively
and on a regular basis as the principal place of the taxpayer's
trade or business. Hamacher v. Commissioner, 94 T.C. 348, 353
(1990). The flush language following section 280A(c)(1)(C)
provides that the term "principal place of business" includes a
place used by the taxpayer "for the administrative or management
activities" of a trade or business. Occasional use, however, of
a portion of a taxpayer's home for business purposes will not
satisfy the requirements of section 280A(c). LaFavor v.
Commissioner, T.C. Memo. 1998-366; Anderson v. Commissioner, T.C.
Memo. 1982-576.
Petitioner testified that his dining room office contained a
file cabinet, construction magazines, a television (for watching
the Learning and Discovery channels), a computer, and a desk.
Petitioner further testified that he was a subcontractor for
Stone Property Management during the entire year and had no other
sources of income. When asked for what purpose the office was
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011