- 12 -
L. 94-455, sec. 601(a), 90 Stat. 1569, the Senate Finance
Committee report explained the exclusive use requirement as
follows:
Exclusive use of a portion of a taxpayer’s dwelling
unit means that the taxpayer must use a specific part
of a dwelling unit solely for the purpose of carrying
on his trade or business. The use of a portion of a
dwelling unit for both personal purposes and for the
carrying on of a trade or business does not meet the
exclusive use test. Thus, for example, a taxpayer who
uses a den in his dwelling unit to write legal briefs,
prepare tax returns, or engage in similar activities as
well for personal purposes, will be denied a deduction
for the expenses paid or incurred in connection with
the use of the residence which are allocable to these
activities. * * * [Emphasis added.]
S. Rept. 94-938, at 148 (1976), 1976-3 C.B. (Vol. 3) 49, 186; see
also H. Rept. 94-658, at 161 (1975), 1976-3 C.B. (Vol. 2) 695,
853; Staff of Joint Comm. on Taxation, General Explanation of the
Tax Reform Act of 1976, at 140 (1976), 1976-3 C.B. (Vol. 2) 1,
152. Similarly, the Court has declined to find that a specific
portion of a residence had been used exclusively for business
purposes where both business and personal activities permeate an
entire residence. Williams v. Commissioner, T.C. Memo. 1991-567;
Naggar v. Commissioner, T.C. Memo. 1983-559.
The exclusive use requirement is an all-or-nothing standard.
See Hamacher v. Commissioner, 94 T.C. 348, 356 (1990). When a
taxpayer uses a home office in conducting numerous business
activities, each use must be of a type described in section
280A(c)(1); otherwise, the exclusive use requirement is not
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: March 27, 2008