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the amount of this expense by estimating the value of their house
to be $5 per square foot. They argue that petitioner used a
portion of their residence for his research activity.
As a general rule, a taxpayer may not deduct an expense
related to the use of his personal residence unless the expense
is of a type that is specifically allowed as a deduction, such as
mortgage interest under section 163(a) and (h) or State and local
property taxes under section 164(a). Sec. 280A(a) and (b). Also
allowable as deductions are certain expenses related to income-
producing rental or business activities. Sec. 280A(c). For such
expenses to be deductible, the related use of the residence must
fit into one of several categories specified in section 280A(c).
The only category that is arguably applicable to the case at hand
is where a portion of the home is used exclusively on a regular
basis as the principal place of business for the taxpayer’s trade
or business. Sec. 280A(c)(1)(A). However, regardless of whether
petitioner’s use of his personal residence fits within this
category, petitioner does not meet a final requirement of section
280A: A taxpayer in petitioner’s situation may not deduct any
amount for the business use of his home if the taxpayer derived
no gross income from such business use. Sec. 280A(c)(5). In
other words, such a taxpayer cannot claim a loss in a business
activity based solely on the use of his home. Id. Because
petitioner did not receive any income from his research activity
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