[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1924 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1924

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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             March 10 (legislative day, February 22), 1994

  Mr. Hatch (for himself, Mr. Exon, and Mr. Lieberman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 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.

    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 Office Deduction Act of 1994''.

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

    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--
                    ``(A) the office is the location where the 
                taxpayer's essential administrative or management 
                activities are conducted on a regular and systematic 
                (and not incidental) basis by the taxpayer, and
                    ``(B) the office is necessary because the taxpayer 
                has no other location for the performance of the 
                administrative or management activities of the 
                business.''.

SEC. 3. TREATMENT OF STORAGE OF PRODUCT SAMPLES.

    Paragraph (2) of section 280A(c) of the Internal Revenue Code of 
1986 is amended by striking ``inventory'' and inserting ``inventory or 
product samples''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 1991.

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