H.R. 4258 (103rd): Home Worker Tax Relief Act of 1994

103rd Congress, 1993–1994. Text as of Apr 19, 1994 (Introduced).

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HR 4258 IH

103d CONGRESS

2d Session

H. R. 4258

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, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

April 19, 1994

Mr. COPPERSMITH introduced the following bill; which was referred to the Committee on Ways and Means


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, and for other purposes.

    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 Worker Tax Relief Act of 1994’.

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

    (a) GENERAL RULE- 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 the office is the location where the taxpayer’s essential administrative, management or telecommuting activities are conducted on a regular and systematic (and not incidental) basis by the taxpayer.’

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1993.

SEC. 3. TREATMENT OF EMPLOYEES ENGAGED IN TELECOMMUTING.

    (a) DEPRECIATION DEDUCTIONS ALLOWED-

      (1) IN GENERAL- Subparagraph (A) of section 280F(d)(3) of the Internal Revenue Code of 1986 (relating to deductions of employee) is amended by adding at the end the following new sentence: ‘The preceding sentence shall not apply to any listed property described in clause (iv) or (v) of paragraph (4)(B).’.

      (2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to property placed in service after the date of the enactment of this Act.

    (b) WAIVER OF 2-PERCENT FLOOR-

      (1) IN GENERAL- Subsection (b) of section 67 of such Code is amended by striking ‘and’ at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘, and’, and by adding at the end the following new paragraph:

      ‘(13) the deductions under part VI (section 161 and following) which are attributable to the performance of services as an employee in such employee’s residence but only if in the performance of such services there is substantial use of--

        ‘(A) any computer or peripheral equipment (as defined in section 168(i)(2)(B)), or

        ‘(B) any telecommunications equipment.’

      (2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1993.