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expenses and depreciation are deductible; (2) if acquisition and
maintenance is motivated primarily by personal considerations,
deductions are disallowed; and (3) if substantial business and
personal motives exist, allocation becomes necessary. Intl.
Trading Co. v. Commissioner, 275 F.2d 578, 584-587 (7th Cir.
1960), affg. T.C. Memo. 1958-104; Intl. Artists, Ltd. v.
Commissioner, supra at 104-105; Richardson v. Commissioner,
supra; Griffith v. Commissioner, supra; Kenerly v. Commissioner,
T.C. Memo. 1984-117.
Where the property in question is residential in character,
a further limitation with potential bearing on business-related
deductions claimed under section 162 or 167 is contained in
section 280A. Effective for tax years beginning after 1975, that
statute reads in part:
SEC. 280A. DISALLOWANCE OF CERTAIN EXPENSES IN
CONNECTION WITH BUSINESS USE OF HOME,
RENTAL OF VACATIONS HOMES, ETC.
(a) General Rule.--Except as otherwise provided in
this section, in the case of a taxpayer who is an
individual or an S corporation, no deduction otherwise
allowable under this chapter 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.
* * * * * * *
(c) Exceptions for Certain Business or Rental Use;
Limitations on Deductions for Such Use.--
(1) Certain business use.--Subsection (a)
shall not apply to any item to the extent such
item is allocable to a portion of the dwelling
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