Ibrahim Keita - Page 6

                                        - 5 -                                         
          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).                          

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next 

Last modified: November 10, 2007