[Congressional Record Volume 141, Number 31 (Thursday, February 16, 1995)]
[Extensions of Remarks]
[Pages E364-E365]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           INTRODUCTION OF HOME OFFICE DEDUCTION LEGISLATION

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                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                      Wednesday, February 15, 1995
  Mrs. JOHNSON of Connecticut. Mr. Speaker, today, I am introducing 
legislation to restore the home office deduction for taxpayers who work 
out of their homes. I am pleased to note that this measure is included 
in the Republican Contract With America and, additionally, has been 
introduced in the other body of Senator Orrin Hatch--S. 327.
  This legislation is made necessary by a 1993 Supreme Court decision, 
Commissioner v. Soliman (113 S.Ct. 701), that greatly reduced the 
availability of the deduction. Previously, home office expenses were 
deductible if the space in the home was devoted to the ``sole and 
exclusive use'' of the office; the taxpayer used no other office of 
business; and, the business generated enough income to cover the 
deduction. The Court, in effect, added two additional conditions: the 
customers of the home-based business must physically visit the home 
office, and the business revenue must be produced within the home 
office itself.
  Clearly, these requirements are excessive and prior law must be 
reinstated and clarified. 
[[Page E365]] I believe today's bill helps achieve that goal and I look 
forward to prompt approval of this measure in the Committee on Ways and 
Means.


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