[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4258 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4258

To amend the Internal Revenue Code of 1986 to provide clarification for 
the deductibility of expenses incurred by a taxpayer in connection with 
         the business use of the home, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 19, 1994

 Mr. Coppersmith introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide clarification for 
the deductibility of expenses incurred by a taxpayer in connection with 
         the business use of the home, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Worker Tax Relief Act of 
1994''.

SEC. 2. CLARIFICATION OF DEFINITION OF PRINCIPAL PLACE OF BUSINESS.

    (a) General Rule.--Subsection (f) of section 280A of the Internal 
Revenue Code of 1986 is amended by redesignating paragraphs (2), (3), 
and (4) as paragraphs (3), (4), and (5), respectively, and by inserting 
after paragraph (1) the following new paragraph:
            ``(2) Principal place of business.--For purposes of 
        subsection (c), a home office shall in any case qualify as the 
        principal place of business if the office is the location where 
        the taxpayer's essential administrative, management or 
        telecommuting activities are conducted on a regular and 
        systematic (and not incidental) basis by the taxpayer.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1993.

SEC. 3. TREATMENT OF EMPLOYEES ENGAGED IN TELECOMMUTING.

    (a) Depreciation Deductions Allowed.--
            (1) In general.--Subparagraph (A) of section 280F(d)(3) of 
        the Internal Revenue Code of 1986 (relating to deductions of 
        employee) is amended by adding at the end the following new 
        sentence: ``The preceding sentence shall not apply to any 
        listed property described in clause (iv) or (v) of paragraph 
        (4)(B).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (b) Waiver of 2-Percent Floor.--
            (1) In general.--Subsection (b) of section 67 of such Code 
        is amended by striking ``and'' at the end of paragraph (11), by 
        striking the period at the end of paragraph (12) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(13) the deductions under part VI (section 161 and 
        following) which are attributable to the performance of 
        services as an employee in such employee's residence but only 
        if in the performance of such services there is substantial use 
        of--
                    ``(A) any computer or peripheral equipment (as 
                defined in section 168(i)(2)(B)), or
                    ``(B) any telecommunications equipment.''
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to taxable years beginning after December 31, 1993.

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