[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 406 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 406

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 5, 1997

     Mr. Hatch (for himself, Mr. Baucus, Mr. Allard, Mr. Bond, Mr. 
Lieberman, and Mr. Burns) 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 1997''.

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

    Section 280A(f) of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(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. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 1996.
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