Lucien Joseph Larvadain - Page 8

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         required to report to petitioner’s home for their training, and              
         there is no evidence that petitioner ever trained NOAA employees             
         at his home.                                                                 
              As to the disallowed claimed deductions for insurance,                  
         repairs and maintenance expenses, and utilities, those expenses              
         related to petitioner’s use of his home in connection with his               
         NOAA contract.                                                               
              Generally, in determining whether a home constitutes the                
         taxpayer’s principal place of business, the Court examines the               
         various locations in which the activity is conducted, the                    
         relative importance of the activities performed at each business             
         location, and the time spent at each place.  To be sure, although            
         petitioner’s home was helpful and used in connection with his                
         NOAA contract, the evidence in this case fails to persuade the               
         Court that petitioner’s home was the principal place of his                  
         business activity nor was his home exclusively used for such                 
         activity.  Rather, the Court finds that the training of the NOAA             
         employees was of primary importance and that the NOAA facility               
         was petitioner’s principal place of business.  The Court,                    
         therefore, concludes that the facts of this case do not establish            
         petitioner’s entitlement to deductions for home office expenses              
         under section 280A(c)(1).  The Court sustains respondent’s                   
                                                 Decision will be entered             
                                            for respondent.                           

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Last modified: March 27, 2008