Cite as: 506 U. S. 168 (1993)
Stevens, J., dissenting
vision, and unfairly denies an intended benefit to the growing number of self-employed taxpayers who manage their businesses from a home office.
I
This case involves an exception to the general rule that "ordinary and necessary" business expenses are deductible.2 There is no dispute that the expenses at issue fall within that general category. They are questioned only because the office is located within respondent's residence. If that office were located in any other place—even in someone else's home—the general rule would apply, and respondent could have deducted the costs of its maintenance. If he had been prosperous enough to own a house and property on which a separate structure was located, he could have maintained that structure as an office and deducted the costs. If his business were so structured that he met regularly with clients and patients at his home office, he also could have deducted the costs. And if he spent two or three hours a day in his home office and a similar amount of time in each of three or four separate hospitals he might also be able to deduct the costs; at least the Court's opinion does not begin to explain how the deduction of the costs in that case might
"(A) [as] the principal place of business for any trade or business of the taxpayer[,] "(B) as a place of business which is used by patients, clients, or customers in meeting or dealing with the taxpayer in the normal course of his trade or business, or "(C) in the case of a separate structure which is not attached to the dwelling unit, in connection with the taxpayer's trade or business.
"In the case of an employee, the preceding sentence shall apply only if the exclusive use referred to in the preceding sentence is for the convenience of his employer."
2 Section 162(a) of the Code provides, in part: "There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including . . . rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property . . . ."
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