Tax Court Reversal on Home Office Deductions

Paul, Herbert M., Willens, Robert, Burge, Marianne, Journal of Accountancy

Individual

TAX COURT REVERSAL ON HOME OFFICE DEDUCTION

Internal Revenue Code section 280A(c)(1)(A) provides an exception to the general rule that expenses incurred in connection with the use of a taxpayer's residence are not deductible. The exception permits the deduction of home office expense if a portion of the home is "exclusively used on a regular basis" as the principal place of business for any trade or business of the taxpayer.

Previously, the Tax Court had taken a hard line on what constituted a taxpayer's principal place of business. The court's opinion had been that the "focal point" of a taxpayer's business--and therefore his principal place of …

Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Tax Court Reversal on Home Office Deductions. Contributors: Paul, Herbert M. - Author, Willens, Robert - Author, Burge, Marianne - Author. Journal title: Journal of Accountancy. Volume: 169. Issue: 5 Publication date: May 1990. Page number: 24. © 2009 American Institute of CPA's. COPYRIGHT 1990 Gale Group.

This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.