Duyet Minh Nguyen - Page 6




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          his home as a home office expense.  Such deductions are governed            
          by section 280A which generally disallows such deductions, unless           
          petitioner’s situation falls within one of the following three              
          exceptions:  (1) A portion of the dwelling unit is used                     
          exclusively on a regular basis as the taxpayer’s principal place            
          of business; (2) a portion of the dwelling unit is used                     
          exclusively on a regular basis as a place of business which is              
          used by patients, clients, or customers in meeting or dealing               
          with the taxpayer in the normal course of his trade or business;            
          or (3) the office is a separate structure not attached to the               
          dwelling unit and that structure is used in connection with the             
          taxpayer’s trade or business.  The record is clear that                     
          petitioner’s home office was not in a structure separate from his           
          residence.  Accordingly, petitioner must establish either that              
          his home office was used exclusively as his principal place of              
          business or as a location for petitioner to meet with clients in            
          the normal course of his business.                                          
               Petitioner admitted that his brother used the “office room”            
          for purposes of sleeping.  Even though such use is tangential and           
          does not, as a practical matter, detract from the use of the room           
          as an office, the statutory language requires that the usage be             
          exclusive.  Petitioner also stated that he used the offices of              
          Oregon First to meet real estate clients.  Under these                      
          circumstances we are compelled by the statute to deny                       
          petitioner’s claim for a home office expense deduction.  See                





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