[Federal Register Volume 59, Number 97 (Friday, May 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12293]
[[Page Unknown]]
[Federal Register: May 20, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[IA-023-93]
RIN 1545-AR80
Deductibility of Expenses Attributable to Business Use of a
Dwelling Unit Used as a Residence
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Partial withdrawal of a notice of proposed rulemaking.
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SUMMARY: This document withdraws a portion of the notice of proposed
rulemaking under section 280A of the Internal Revenue Code that was
published in the Federal Register on July 21, 1983. That notice
concerns the requirements for deductibility of expenses in connection
with the business use, or the rental to others, of a dwelling unit that
the taxpayer is deemed to have used for personal purposes during the
taxable year.
DATES: This notice is effective on May 20, 1994.
FOR FURTHER INFORMATION CONTACT: Marilyn E. Brookens, (202) 622-1585
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On August 7, 1980, the IRS published in the Federal Register (45 FR
52399) a notice of proposed rulemaking under Internal Revenue Code
(Code) section 280A relating to the deductibility of expenses in
connection with the business use, or the rental to others, of a
dwelling unit that the taxpayer is deemed to have used for personal
purposes during the taxable year. On July 21, 1983, the IRS published
in the Federal Register (48 FR 33320) a notice of proposed rulemaking
containing amendments to those proposed rules.
Section 280A(c)(1)(A) of the Code permits the deduction of certain
expenses relating to the business use of the home if part of the home
is exclusively used on a regular basis as the principal place of
business for any trade or business of the taxpayer. Proposed
Sec. 1.280A-2(b)(2), as amended, provides that a taxpayer is deemed to
have a principal place of business for each trade or business in which
the taxpayer engages. In Commissioner v. Soliman, 113 S. Ct. 701
(1993), the United States Supreme Court noted that, in some cases,
there may be no principal place of business. Thus, the Service is
hereby withdrawing proposed Sec. 1.280A-2(b)(2), as amended.
Proposed Sec. 1.280A-2(b)(3), as amended, sets forth three factors
to be taken into account in determining the location of a taxpayer's
principal place of business when the taxpayer engages in a single trade
or business at more than one location. The Supreme Court in Soliman
identified two primary factors for determining whether a taxpayer's
home is the principal place of business in circumstances where the
taxpayer engages in the activities of a business at more than one
location. Because the two factors identified by the Supreme Court
differ from the three factors set forth in proposed Sec. 1.280A-
2(b)(3), as amended, the IRS is hereby withdrawing proposed
Sec. 1.280A-2(b)(3), as amended.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Withdrawal of Portion of Notice of Proposed Rulemaking
Accordingly, under the authority of 26 U.S.C. 7805, proposed
Secs. 1.280A-2(b)(2) and (b)(3), that were published in the Federal
Register (48 FR 33320, at 33324) on July 21, 1983, are withdrawn.
Michael P. Dolan,
Commissioner of Internal Revenue.
[FR Doc. 94-12293 Filed 5-19-94; 8:45 am]
BILLING CODE 4830-01-U
