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course of business, or (3) in the case of an unattached separate
structure, in connection with the business. The deduction cannot
exceed the gross income derived from the business use of the
residence over the sum of certain deductions allocable to such
income. Sec. 280A(c)(5); Tobin v. Commissioner, T.C. Memo. 1999-
328; Cunningham v. Commissioner, T.C. Memo. 1996-141, affd.
without published opinion 110 F.3d 59 (4th Cir. 1997).
In order for a taxpayer to establish use on a “regular”
basis, the business use must be more than occasional or
incidental. Irwin v. Commissioner, T.C. Memo. 1996-490, affd.
without published opinion 131 F.3d 146 (9th Cir. 1997); Hefti v.
Commissioner, T.C. Memo. 1993-128. A taxpayer “exclusively” uses
a portion of his dwelling unit in a trade or business if the
portion in question is not used for other than business purposes.
Irwin v. Commissioner, supra; Hefti v. Commissioner, supra. The
use of a portion of a dwelling unit both for personal purposes
and for the carrying on of a trade or business does not meet the
exclusive use test. See Sengpiehl v. Commissioner, T.C. Memo.
1998-23; Hefti v. Commissioner, supra. Whether a taxpayer’s home
office is his principal place of business is dependent on the
amount of time spent at each location, and the relative
importance of the activities performed at each location. See
Commissioner v. Soliman, 506 U.S. 168, 175 (1993).
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