Dempsey v. Commissioner

1982 T.C. Memo. 580, 44 T.C.M. 1319, 1982 Tax Ct. Memo LEXIS 173
CourtUnited States Tax Court
DecidedSeptember 30, 1982
DocketDocket No. 7699-80.
StatusUnpublished

This text of 1982 T.C. Memo. 580 (Dempsey v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dempsey v. Commissioner, 1982 T.C. Memo. 580, 44 T.C.M. 1319, 1982 Tax Ct. Memo LEXIS 173 (tax 1982).

Opinion

JOHN D. DEMPSEY AND KAREN J. DEMPSEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Dempsey v. Commissioner
Docket No. 7699-80.
United States Tax Court
T.C. Memo 1982-580; 1982 Tax Ct. Memo LEXIS 173; 44 T.C.M. (CCH) 1319; T.C.M. (RIA) 82580;
September 30, 1982.

*173 Petitioners used one room in their house exclusively for practice and rehearsals in connection with their trades or businesses as employees of the University of Rhode Island and the Rhode Island Philharmonic Orchestra. Held: Petitioners did not use this room as their principal place of business for each of their trades or businesses and so may not deduct any of their expenses and depreciation for this room. Sec. 280A, I.R.C. 1954.

John D. Dempsey and Karen J. Dempsey, pro se. Peter J. Panuthos, for the respondent.

CHABOT

MEMORANDUM FINDINGS OF FACT AND OPINION

CHABOT, Judge: Respondent determined a deficiency in Federal individual income tax against petitioners for 1977 in the amount of $250. The issue for decision is whether petitioners meet the requirements of section 280A(c)(1)1 so as to entitle them to a deduction for business*175 use of part of their home and, if so, whether section 280A(c)(5) requires the deduction to be reduced.

FINDINGS OF FACT

Some of the facts have been stipulated; the stipulations and the stipulated exhibits are incorporated herein by this reference.

When the petition in this case was filed, petitioners John D. Dempsey (hereinafter sometimes referred to as "John") and Karen J. Dempsey (hereinafter sometimes referred to as "Karen"), husband and wife, resided in North Kingstown, Rhode Island.

John was employed as a professor in the Music Department of the University of Rhode Island (hereinafter sometimes referred to as "the University") throughout 1977. As part of his duties as a professor in the Music Department, he performed as a musician with the University of Rhode Island String Quartet (hereinafter sometimes referred to as "the Quartet"). John also was employed as a performer with the Rhode Island Philharmonic Orchestra (hereinafter sometimes referred to as "the Orchestra") in 1977.

In 1977, Karen was employed by the University*176 as a performer with the Quartet; 2 also she was employed by the Orchestra as a performer.

Petitioners set aside a specially equipped room (hereinafter sometimes referred to as "the practice room") in their home for musical practice. A large room was necessary for acoustical purposes because a small room would distort sound and cause a performer to play with a "smaller volume" than is desirable. The practice room occupied about 26 percent of the floor area of the house; it contained music books, a music file, music stands, a file for performance tapes, records and stereo (to hear other professional performers and performances), a special carpet (to inhibit reverberation), a tape recorder (for use by petitioners in criticizing their own practice), a dehumidifier (to protect the instruments in the summer), door locks (for security purposes), a piano (for recital practices), a woodburning fireplace, chairs, a desk, a telephone, and bookshelves (used for music books).

Petitioners used the practice room only for violin practice, Quartet rehearsals, and instrument storage. They did not use the practice room to entertain. *177 John did not use the practice room to plan, prepare, or correct assignments in connection with his classes at the University. 3

*178 Petitioners incurred $1,035.16 in expenses and depreciation for the practice room in 1977.

John's duties as professor of music at the University included the teaching of classes in music theory, strings (beginning violin), and chamber music. Also, he was the violin instructor at the University. He used his office at the University to prepare his courses and counsel students. The foregoing took 35 to 40 hours per week. In order to teach properly (especially when teaching violin students individually), he had to be able to perform better than his pupils, which required him to practice--a task he performed in the practice room. His direct involvement with his pupils was the major part of his work load as professor of music at the University; his work with the Quartet was a small portion of his work load.

Both John and Karen were violinists in the Quartet. Each of them had to practice in order to be familiar with their parts before rehearsals of the Quartet. Although the Quartet was "in residence" at the University, there was no space in the University that was both available and suitable for individual practice for the members of the Quartet. The entire Quartet practiced*179 or rehearsed together in the practice room about 40 to 50 times a year. The Quartet practiced or rehearsed together in other peoples' homes, but not as often as in petitioners' home. The Quartet gave two formal concerts per year at the University. Each year the Quartet also presented a workshop at the University or in a public school. During 1977, the Quartet gave about 10 performances altogether.

In 1977, John was first violinist and Karen was head of the second violin section in the Orchestra.

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1982 T.C. Memo. 580, 44 T.C.M. 1319, 1982 Tax Ct. Memo LEXIS 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dempsey-v-commissioner-tax-1982.