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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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Last modified: November 10, 2007