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In order to have a deductible amount, petitioners must show
medical and dental expenses exceeding $6,191.18 ($82,549 (AGI) x
7.5 percent).2 The $2,551 in medical and dental expenses that
respondent has conceded does not exceed the 7.5-percent floor.
Accordingly respondent’s determination denying petitioners’
deduction for medical and dental expenses is sustained.
4. Deduction for the Business Use of the Home
Expenses for the business use of a taxpayer’s residence are
deductible only in very limited circumstances. The taxpayer must
show that a portion of the residence was exclusively used on a
regular basis as his principal place of business for any trade or
business of the taxpayer; and in the case of an employee, the
exclusive use must be for the employer’s convenience. See sec.
280A(c)(1). If the taxpayer uses the dwelling unit as a
residence, the deduction is limited to the excess of the gross
income derived from such business use over the sum of certain
deductions. Sec. 280A(c)(5).
It is well established that an individual may be in the
trade or business of being an employee and that ordinary and
necessary expenses incurred in a trade or business are
deductible. See sec. 162(a); Primuth v. Commissioner, 54 T.C.
374 (1970); Christensen v. Commissioner, 17 T.C. 1456 (1952).
2 Petitioners reported AGI of $82,548.94, and respondent
rounded it to the nearest dollar; i.e., $82,549.
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Last modified: March 27, 2008