- 29 -
A “regular business establishment” includes a portion of a
dwelling unit that is exclusively used on a regular basis as the
principal place of business for the taxpayer’s trade or business.
Sec. 280A(c)(1)(A). For tax years beginning after December 31,
1998, in the case of an employee, the exclusive use must be for
the convenience of his employer, and the term “principal place of
business” includes a place of business which is used by the
taxpayer for the administrative or management activities of a
trade or business if there is no other fixed location of such
trade or business where the taxpayer conducts substantial
administrative or management activities. Sec. 280A(c)(1).4
Although Mrs. Whitehurst regularly worked in her home for
the convenience of her employer, it is not clear that she used
any portion of the home exclusively for the purpose of carrying
on her trade or business. See sec. 280A(c)(1)(A). Because Mrs.
Whitehurst’s computer and computer-related equipment do not fall
under the home office exception to section 274 under sections
280F(d)(4)(B) and 280A(c)(1)(A), they are listed property under
section 274(d)(4), and their deductibility is subject to the
strict substantiation requirements of section 274(d) (i.e.,
amount, time and place, and business purpose of the expense).
4 Congress amended sec. 280A(c) to read as reflected above
in the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 932(a),
111 Stat. 881.
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011