- 7 - (1) as the principal place of business for any trade or business of the taxpayer (sec. 280A(c)(1)(A)); (2) as a place of business used by patients, clients, or customers in meeting or dealing with the taxpayer in the normal course of his trade or business (sec. 280A(c)(1)(B)); or (3) in the case of a separate structure which is not attached to the dwelling unit, in connection with the taxpayer's trade or business (sec. 280A(c)(1)(C)). Where a taxpayer's business is conducted in part in the taxpayer's residence and in part at another location, the following two primary factors are considered in determining whether the home office qualifies under section 280A(c)(1)(A) as the taxpayer's "principal" place of business: (1) The relative importance of the functions or activities performed at each business location, and (2) the amount of time spent at each location. Commissioner v. Soliman, 506 U.S. 168, 175-177 (1993). Whether the functions or activities performed at the home office are necessary to the business is relevant but not controlling, and the location at which goods and services are delivered to customers generally will be regarded as the principal place of a taxpayer's business. Id. at 176. The relative importance of business activities engaged in at the home office may be substantially outweighed by business activitiesPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011