Lucien Joseph Larvadain - Page 7

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              In addition, section 280A(a) provides as a general rule that            
         “no deduction * * * shall be allowed with respect to the use of a            
         dwelling unit which is used by the taxpayer during the taxable               
         year as a residence.”  However, section 280A(c)(1) sets forth the            
         following exceptions to the general rule:                                    
                   SEC. 280A(c).  Exceptions for Certain Business or                  
              Rental Use; Limitation on Deductions for Such Use.                      
                          (1) Certain business use.--Subsection (a) shall             
                   not apply to any item to the extent such item is                   
                   allocable to a portion of the dwelling unit which is               
                   exclusively used on a regular basis--                              
                             (A) the principal place of business for                  
                          any trade or business of the taxpayer,                      
                             (B) 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                  
                             (C) in the case of a separate structure                  
                          which is not attached to the dwelling unit,                 
                          in connection with the taxpayer’s trade or                  
              In determining whether petitioner’s home was used                       
         exclusively and regularly as his principal place of business,                
         there are several factors that militate against petitioner in                
         this case.  First, petitioner was not required under his contract            
         with NOAA to perform his contract obligations at home.  Second,              
         petitioner admitted at trial that he performed services under the            
         contract at NOAA’s offices from 35 to 40 percent of the time and             
         the remainder of his contract obligations were performed at home.            
         Third, employees of NOAA that petitioner trained were not                    

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