Visin v. Commissioner of Internal Revenue

Full title: MICHAEL H. VISIN; NATALIE MARSELLY, Petitioners-Appellants, v…

Court: United States Court of Appeals, Ninth Circuit

Date published: Feb 11, 2005

Fact:

  • Michael H. Visin, a self-employed artist, and his wife, Natalie Marselly, appealed pro se the Tax Court’s decision regarding the deduction of certain business expenses for the 1997 and 1998 tax years.

Issues:

  • Whether the Tax Court correctly limited the taxpayers’ home office deduction for rent and other expenses to the income derived from Mr. Visin’s business.
  • Whether the taxpayers were entitled to “expense” under Internal Revenue Code (“IRC”) § 179 for the cost of computer equipment and software purchased in 1998, considering their failure to make a proper election on their tax return.
  • Whether any remaining contentions raised by the taxpayers have merit.

Decision:

  • The Court holds that the Tax Court correctly applied the law and affirms its decision.
  • The Tax Court properly limited the taxpayers’ home office deduction in accordance with IRC § 280A(c)(5) to the income derived from Mr. Visin’s business, as established in Norton v. Commissioner.
  • The taxpayers were not entitled to “expense” under IRC § 179 for the cost of computer equipment and software purchased in 1998 because they failed to make a proper election on their tax return, as determined in Starr v. Commissioner.
  • The Court finds that the taxpayers’ remaining contentions lack merit.

Conclusion:

  • The Court affirms the Tax Court’s decision regarding the disallowance of certain business expenses for the 1997 and 1998 tax years.
  • The taxpayers’ appeal is denied.

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