[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 703 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 703

To amend the Internal Revenue Code of 1986 to clarify the deductibility 
of expenses incurred by a taxpayer in connection with the business use 
                              of the home.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 6, 1997

  Mr. Allard 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 clarify 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. CLARIFICATION OF DEFINITION OF PRINCIPAL PLACE OF BUSINESS.

    (a) In General.--Subsection (f) of section 280A of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) 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)(1)(A), a home office shall in any case qualify 
        as a principal place of business if--
                    ``(A) the office is a place of business which is 
                used by the taxpayer for the administrative or 
                management activities of any trade or business of the 
                taxpayer, and
                    ``(B) there is no other fixed location of such 
                trade or business where the taxpayer conducts 
                substantial administrative or management activities of 
                such trade or business.''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of enactment of this Act.
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