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disallowing petitioner’s claimed rental expense deduction is
sustained.
3. Business Use of Home
Respondent argues that petitioner is not eligible for a
business use of home deduction because his residence was not his
principal place of trade or business. If the Court decides that
petitioner’s residence was his principal place of trade or
business, respondent argues that the deductions petitioner
claimed in relation to the business use of home, other than
mortgage interest and real estate taxes, should be disallowed for
a lack of substantiation. Mortgage interest and real estate
taxes on petitioner’s home have already been allowed.8
Section 280A(a) provides as a general rule that no deduction
otherwise allowable to an individual “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.” The seemingly
prohibitory rule of section 280A(a) is ameliorated by section
280A(c), which provides exceptions for certain business uses. As
8 Petitioner submitted to respondent a Form 1098, Mortgage
Interest Statement (former Form 1098), in support of mortgage
interest expenses of $5,142.69 and real estate taxes of $1,178.11
for petitioner’s personal residence. Petitioner also produced an
identical Form 1098 (latter Form 1098), except for the fact that
the amount for real estate taxes was changed from $1,178.11 to
$2,299.11, an amount which petitioner originally included on
Schedule A of his return. The parties stipulated that the former
Form 1098 was correct and the latter Form 1098 was incorrect
because it indicated an improper amount for real estate taxes.
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