George W. Gino and Emilie R. Gino v. Commissioner of Internal Revenue

The Commissioner of Internal Revenue (Commissioner) has appealed from an adverse decision of the Tax Court regarding a “home-office” deduction claimed by taxpayers. The opinion of the Tax Court is reported at 60 T.C. 304 (1973).

The essential facts are not in dispute. Taxpayers, husband and wife, were high school teachers employed in the Los Angeles School System during the tax years in question, 1966, 1967 and 1968. In this period both performed non-classroom duties at home in connection with their employment. They spent about two hours each night, five days a week, preparing lesson plans, framing examination questions, grading papers and reading professional materials. They also stored their professional library and teaching materials in their home. During the years at issue they used a definite percentage of the space for business purposes, although the areas so occupied were not segregated but were also used for non-teaching activities.

On their returns they claimed specified amounts as expenses for an office-in-the-home. The Commissioner allowed a portion of the deductions, computing the deduction on the basis of a formula contained in Rev. Rui. 62-180, 1962-2…