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governing deductibility were needed because of the
administrative burdens which resulted from requiring
taxpayers to substantiate the business element of what
is normally a personal item (i.e., maintenance of a
residence). Additionally, there was the concern that,
under the standards adopted by some courts
(particularly this Court), those which were otherwise
personal expenses were being allowed as deductions.
[Baie v. Commissioner, 74 T.C. 105, 108-109 (1980); fn.
refs. omitted.]
Cases pertaining to taxable years subsequent to the 1976
effective date of section 280A have enforced the statute in the
context of both claimed expenses and depreciation. For instance,
in Griffith v. Commissioner, T.C. Memo. 1988-445, the taxpayer
claimed business expenses and depreciation with respect to his
residence for tax years both before and after section 280A’s
enactment. For 1974 and 1975, the Court applied the standards
set forth in Intl. Artists, Ltd. v. Commissioner, 55 T.C. 94
(1970), and advocated by petitioners here, but then noted that
section 280A would preclude an allocation between business and
personal use for 1976 through 1978 without a showing of exclusive
business use of a portion of the home. Griffith v. Commissioner,
supra. Similarly, addressing tax years 1980 through 1982, the
Court in Hefti v. Commissioner, T.C. Memo. 1988-22, affd. without
published opinion 894 F.2d 1340 (8th Cir. 1989), discussed the
legislative history and observed that “Any personal use of a room
or segregated area will preclude its use in computing
depreciation or other allocable expenditures”.
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