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schedule, but at the hospitals in which he provided licensed
vocational nursing services. To the extent that petitioner used
his home for administrative activities, he has not established
that the work at home was for the convenience of his employer.
Based on the foregoing, we hold that petitioner’s use of his
garage for scheduling and faxing does not fulfill the business
use exception of section 280A(c)(1), and petitioner is therefore
not entitled to a deduction for business use of his home.
B. Computers, Monitors, and Fax Machine
At trial, petitioner tried to establish that he was entitled
to deduct $3,949 as Schedule C business expenses on his 2004 tax
return for computers, monitors, and a fax machine. Because
petitioner’s computer and peripheral equipment do not fall within
the home office exception to section 274 under section
280F(d)(4)(B),2 they are listed property under section
280F(d)(4), and their deductibility is subject to the strict
substantiation requirements of section 274(d).
When a taxpayer establishes that he has incurred a
deductible expense but is unable to substantiate the exact
2 Listed property does not include any computer or
peripheral equipment used exclusively at a regular business
establishment. Sec. 280F(d)(4)(B). Any portion of a dwelling
unit shall be treated as a regular business establishment if (and
only if) the requirements of sec. 280A(c)(1) are met with respect
to such portion. Sec. 280F(d)(4)(B). For the reasons discussed
above, petitioner’s use of his garage does not satisfy the
requirements of sec. 280A(c)(1), and therefore the computers,
monitors, and fax machine are listed property.
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