[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 327 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 327

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

             February 1 (legislative day, January 30), 1995

   Mr. Hatch (for himself, Mr. Baucus, Mr. Exon, Mr. Lieberman, Mr. 
Grassley, Mr. Johnston, and Mr. Kerrey) 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 1995''.

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 
                essential 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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