§ 280A. Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1976

   Pub. L. 94–455 title VI § 601(a) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 280A

   Added Pub. L. 94–455, title VI, § 601(a), Oct. 4, 1976, 90 Stat. 1569

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title VI, § 601(a), Oct. 4, 1976, 90 Stat. 1569

   Enacted provision · exact public law section
   (a) Nondeductibility of Certain Expenses.— Part IX of subchapter B of chapter’ 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: “SEC. 280A. DISALLOWANCE OF CERTAIN EXPENSES IN CONNECTION WITH BUSINESS USE OF HOME, RENTAL OF VACATION HOMES, ETC. “(a) General Rule.— Except as otherwise provided in this section, in the case of a taxpayer who is an individual or an electing small business corporation, no deduction otherwise allowable under this chapter shall be allowed with respect to the use of a dwelling unit which is used by the taxpayer during the taxable year as a residence. “(b) Exception fob Interest, Taxes, Casualty Losses, Etc.— Subsection (a) shall not apply to any deduction allowable to the tax-payer without regard to its connection with his trade or business (or with his income-producing activity). “(c) Exceptions for Certain Business or Rental Use; Limitation on Deductions for Such Use.— “(1) Certain business use.— Subsection (a) shall not apply to any item to the extent such item is allocable to a portion of the dwelling unit which is exclusively used on a regular basis— “(A) as the taxpayer’s principal place of business, “(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 tax-payer’s trade or business. In tile 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) Certain storage use.— Subsection (a) shall not apply to any item to the extent such item is allocable to space within the dwelling unit which is used on a regular basis as a storage unit, for the inventory of the taxpayer held for use in the taxpayer’s trade or business of selling products at retail or wholesale, but only if the dwelling unit is the sole fixed location of such trade or business. “(3) Rental use.— Subsection (a) shall not apply to any item which is attributable to the rental of the dwelling unit or portion thereof (determined after the application of subsection (e)), “(4) Limitation on deductions.— In the case of a use described in paragraph (I) or (2). and in the case of a use described in paragraph (3) where the dwelling unit is used by the taxpayer during the taxable year as a residence, the deductions allowed under this chapter for the taxable year by reason of being attributed to such use shall not exceed the excess of— “(A) the gross income derived from such use for the taxable year, over “(B) the deductions allocable to such use which are allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was so used. “(d) Use as Residence.— “(1) In general.— For purposes of this section, a taxpayer uses a dwelling unit during the taxable year as a residence if he uses such unit (or portion thereof) for personal purposes for a number of days which exceeds the greater of— “(A) 14 days, or “(B) 10 percent of the number of days during such year for which such unit is rented at a fair rental. For purposes of subparagraph (B), a unit shall not be treated as rented at a fair rental for any day for which it is used for personal purposes. “(2) Personal use of unit.— For purposes of this section, the taxpayer shall be deemed to have used a dwelling unit for per-sonal purposes for a day if, for any part of such day, the unit is used— “(A) for personal purposes by the taxpayer or any other person who has an interest in such unit, or by any member of the family (as defined in section 267(c)(4)) of the tax-payer 26 USC 267. or such other person; “(B) by any individual who uses the unit under an arrangement which enables the taxpayer to use some other dwelling unit (whether or not a rental is charged for the use of such other unit); or “(C) by any individual (other than an employee with respect, to whose use section 119 applies), unless for such day the dwelling unit is rented for a rental which, under the facts and circumstances, is fair rental. The Secretary shall prescribe regulations with respect to the circumstances Regulations. under which use of the unit for repairs and annual maintenance will not constitute personal use under this paragraph. “(e) Expenses Attributable to Rental.— “(1) In general.— In any case where a taxpayer who is an individual Or an electing small business corporation uses a dwelling unit for personal purposes on any day during the taxable year (whether or not he is treated under this section as using such unit as a residence), the amount deductible under this chapter with respect to expenses attributable to the rental of the unit (or portion thereof) for the taxable year shall not exceed an amount which bears the same relationship to such expenses as the number of days during each year that the unit (or portion thereof) is rented at a fair rental bears to the total number of days during such year that the unit (or portion thereof) is used. “(2) Exception for deduction otherwise allowable.— This subsection shall not apply with respect to deductions which would be allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was rented. “(f) Definitions and Special Rules.— “(1) Dwelling unit defined.— For purposes of this section— “(A) In general.— The term ‘dwelling unit’ includes a house, apartment, condominium, mobile home, boat, or similar property, and all structures or other property appurtenant to such dwelling unit. “(B) Exception.— The term ‘dwelling unit’ does not include that portion of a unit which is used exclusively as a hotel, motel, inn, or similar establishment. “(2) Personal use by electing shalt. business corporation.— In the case of an electing small business corporation, subparagraphs (A) and (B) of subsection (d)(2) shall be applied by substituting ‘any shareholder of the electing small business corporation’ for ‘the taxpayer’each place it appears. “(3) Coordination with section 183.— If subsection (a) applies with respect to any dwelling unit (or portion thereof) for the taxable year— “(A) section 183 (relating to activities not engaged in for profit) shall not apply to such unit (or portion thereof) for such year, but “(B) such year shall be taken into account as a taxable year for purposes of applying subsection (d) of section 183 (relating to 5-year presumption). “(g) Special Hull for Certain Rental Use.— Notwithstanding any other provision of this section or section 183, if a dwelling unit is used during the taxable year by the taxpayer as a residence and such dwelling unit is actually rented for less than 15 days during the taxable year, then— “(1) no deduction otherwise allowable under this chapter because of the rental use of such dwelling unit shall be allowed, and “(2) the income derived from such use for the taxable year shall not be included in the gross income of such taxpayer under section 61”

2. 1977

   Tax Reduction and Simplification Act of 1977

   Pub. L. 95–30 title III § 306(a) · 91 Stat. 126

   1. Added · 26 U.S.C. § 280A(c)(4); 26 U.S.C. § 280A(c)(5)

      Pub. L. 95–30 added par. (4)

   2. Redesignated · 26 U.S.C. § 280A(c)(4); 26 U.S.C. § 280A(c)(5)

      Pub. L. 95–30 redesignated former par. (4) as (5)

   3. Substituted · 26 U.S.C. § 280A(c)(4); 26 U.S.C. § 280A(c)(5)

      Pub. L. 95–30 substituted “paragraph (1), (2), or (4)” for “paragraph (1) or (2)” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (c)(4), (5). Pub. L. 95–30 added par. (4), redesignated former par. (4) as (5) and substituted “paragraph (1), (2), or (4)” for “paragraph (1) or (2)” in introductory provisions.

   Enacted provision · exact public law section
   (a) In General.— Subsection (c) of section 280A (relating to exceptions for certain business or rental use; limitation on deductions for such use) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: “(4) Use in providing day care services.— “(A) In general.— Subsection (a) shall not apply to any item to the extent that such item is allocable to the use of any portion of the dwelling unit on a regular basis in the taxpayer’s trade or business of providing day care for children, for individuals who have attained age 65, or for individuals who are physically or mentally incapable of caring for themselves. “(B) Licensing, etc., requirement.— Subparagraph (A) shall apply to items accruing for a period only if the owner or operator of the trade or business referred to m subparagraph (A)— “(i) has applied for (and such application has not been rejected), “(ii) has been granted (and such granting has not been revoked), or “(iii) is exempt from having. a license, certification, registration, or approval as a day care center or as a family or group day care home under the provisions of any applicable State law. This subparagraph shall apply only to items accruing in periods beginning on or after the first day of the first month which begins more than 90 days after the date of the enactment of the Tax Reduction and Simplification Act of 1977. “(C) Allocation formula.— If a portion of the taxpayer’s dwelling unit used for the purposes described in subparagraph (A) is not used exclusively for those purposes, the amount of the expenses attributable to that portion shall not exceed an amount which bears the same ratio to the total amount of the items allocable to such portion as the number of hours the portion is used for such purposes bears to the number of hours the portion is available for use.”

3. 1978

   Pub. L. 95–600 title VII § 701(h)(1) · 92 Stat. 2763

   Added · 26 U.S.C. § 280A(d)(3)

   Pub. L. 95–600 added par. (3)

   Source evidence

   Code amendment note
   Subsec. (d)(3). Pub. L. 95–600 added par. (3).

   Enacted provision · exact public law section
   (1) 26 USC 280A. In general.— Subsection (d) of section 280A (relating to use of residence for personal purposes) is amended by adding at the end thereof the following new paragraph: “(3) Rental of principal residence.— “(A) In general.— For purposes of applying subsection (c)(5) to deductions allocable to a qualified rental period, a taxpayer shall not be considered to have used a dwelling unit for personal purposes for any day during the taxable year which occurs before or after a qualified rental period described in subparagraph (B)(i), or before a qualified rental period described in subparagraph (B)(ii), if with respect to such day such unit constitutes the principal residence 26 USC 1034. (within the meaning of section 1034) of the taxpayer. “(B) Qualified rental period.— For purposes of subparagraph (A), the term ‘qualified rental period’ means a consecutive period of— “(i) 12 or more months which begins or ends in such taxable year, or “(ii) less than 12 months which begins in such taxable year and at the end of which such dwelling unit is sold or exchanged, and for which such unit is rented to a person other than a 26 USC 267. member of the family (as defined in section 267(c)(4)) of the taxpayer, or is held for rental, at a fair rental.”

4. 1981

   Pub. L. 97–119 § 113(c) · 95 Stat. 1635

   Substituted · 26 U.S.C. § 280A(c)(1)(A)

   Pub. L. 97–119, § 113(c), substituted “the principal place of business for any trade or business of the taxpayer” for “as the taxpayer’s principal place of business”

   Source evidence

   Code amendment note
   Subsec. (c)(1)(A). Pub. L. 97–119, § 113(c), substituted “the principal place of business for any trade or business of the taxpayer” for “as the taxpayer’s principal place of business”.

   Enacted provision · exact public law section
   (c) Principal Place of Business Applies to Any Trade or Business.— Subparagraph (A) of section 280A(c)(1) (relating to certain business use) is amended to read as follows: “(A) the principal place of business for any trade or business of the taxpayer.”.

5. 1981

   Pub. L. 97–119 § 113(d) · 95 Stat. 1635

   Inserted · 26 U.S.C. § 280A(d)(2)

   Pub. L. 97–119, § 113(d), inserted in provision following subpar. (C) “, except that if the taxpayer is engaged in repair and maintenance on a substantially full time basis for any day, such authority shall not allow the Secretary to treat a dwelling unit as being used for personal use by the taxpayer on such day merely because other individuals who are on the premises on such day are not so engaged”

   Source evidence

   Code amendment note
   Subsec. (d)(2). Pub. L. 97–119, § 113(d), inserted in provision following subpar. (C) “, except that if the taxpayer is engaged in repair and maintenance on a substantially full time basis for any day, such authority shall not allow the Secretary to treat a dwelling unit as being used for personal use by the taxpayer on such day merely because other individuals who are on the premises on such day are not so engaged”.

   Enacted provision · exact public law section
   (d) Repair and Maintenance of Dwelung Unit.— The last sentence of paragraph (2) of section 280A(d) (relating to personal use of residence) is amended by inserting “, except that if the taxpayer is engaged in repair and maintenance on a substantially full time basis for any day, such authority shall not allow the Secretary to treat a dwelling unit as being used for personal use by the taxpayer on such day merely because other individuals who are on the premises on such day are not so engaged” after “paragraph”.

6. 1981

   Pub. L. 97–119 § 113(a) · 95 Stat. 1635

   1. Added · 26 U.S.C. § 280A(d)(3); 26 U.S.C. § 280A(d)(4)

      Pub. L. 97–119, § 113(a), added par. (3)

   2. Redesignated · 26 U.S.C. § 280A(d)(3); 26 U.S.C. § 280A(d)(4)

      Pub. L. 97–119, § 113(a), redesignated former par. (3) as (4)

   3. Struck · 26 U.S.C. § 280A(d)(3); 26 U.S.C. § 280A(d)(4)

      Pub. L. 97–119, § 113(a), struck out “to a person other than a member of the family (as defined in section 267(c)(4)) of the taxpayer” after “such unit is rented” in subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (d)(3), (4). Pub. L. 97–119, § 113(a), added par. (3), redesignated former par. (3) as (4) and struck out “to a person other than a member of the family (as defined in section 267(c)(4)) of the taxpayer” after “such unit is rented” in subpar. (B).

   Enacted provision · exact public law section
   (a) Rental to Family Members and Shared Equity Agreements Permitted.— (1) In General.— Subsection (d) of section 280A (relating to 26 USC 280A. disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(3) Rental to family member, etc., for use as principal residence.— “(A) In General.— A taxpayer shall not be treated as using a dwelling unit for personal purposes by reason of a rental arrangement for any period if for such period such dwelling unit is rented, at a fair rental, to any person for use as such person’s principal residence. “(B) Special rules for rental to person having interest in unit.— “(i) Rental must be pursuant to shared equity financing agreement.— Subparagraph (A) shall apply to a rental to a person who has an interest in the dwelling unit only if such rental is pursuant to a shared equity financing agreement. “(ii) Determination of fair rental.— In the case of a rental pursuant to a shared equity financing agreement, fair rental shall be determined as of the time the agreement is entered into and by taking into account the occupant’s qualified ownership interest. “(C) Shared equity financing agreement.— For purposes of this paragraph, the term ’shared equity financing agreement’ means an agreement under which— “(i) 2 or more persons acquire qualified ownership interests in a dwelling unit, and “(i) the person (or persons) holding 1 or more of such interests— “(I) is entitled to occupy the dwelling unit for use as a principal residence, and “(II) is required to pay rent to 1 or more other persons holding qualified ownership interests in the dwelling unit. “(D) Quaufied ownership interest.— For purposes of this paragraph, the term ’qualified ownership interest’ means an undivided interest for more than 50 years in the entire dwelling unit and appurtenant land being acquired in the transaction to which the shared equity financing agreement relates.”. (2) Definition of quaufied rental period.— Subparagraph 26 USC 280A. (B) of section 280A(d)(4) (defining qualified rental period), as redesignated by paragraph (1), is amended by striking out “to a person other than a member of the family (as defined in section 267(c)(4)) of the taxpayer”.

7. 1981

   Pub. L. 97–119 § 113(b)(1) · 95 Stat. 1635

   Added · 26 U.S.C. § 280A(f)(4)

   Pub. L. 97–119, § 113(b)(1), added par. (4)

   Source evidence

   Code amendment note
   Subsec. (f)(4). Pub. L. 97–119, § 113(b)(1), added par. (4).

   Enacted provision · exact public law section
   (b) Treatment of Expenses While Away From Home in Pursuit of Trade or Business.— “(1) In General.— Subsection (f) of section 280A is amended by adding at the end thereof the following new paragraph: “(4) Coordination with section 162(a)(2), etc.— “(A) In general.— Nothing in this section shall be construed to disallow any deduction allowable under section 162(a)(2) (or any deduction which meets the tests of section 162(a)(2) but is allowable under another provision of this title) by reason of the taxpayer’s being away from home in the pursuit of a trade or business (other than the trade or business of renting dwelling units). “(B) Limitation.— The Secretary shall prescribe amounts deductible (without substantiation) pursuant to the last sentence of section 162(a), but nothing in subparagraph (A) or any other provision of this title shall permit such a deduction for any taxable year of amounts in excess of the amounts determined to be appropriate under the circumstances.”.

8. 1982

   Urgent Supplemental Appropriations Act, 1982

   Pub. L. 97–216 title II § 215(b) · 96 Stat. 180

   1. Struck · 26 U.S.C. § 280A(f)(4)

      Pub. L. 97–216 struck out “, etc.” after “section 162(a)(2)” in heading

   2. Struck · 26 U.S.C. § 280A(f)(4)

      Pub. L. 97–216 struck out “(A) In general.—” before “Nothing in this section”

   3. Struck · 26 U.S.C. § 280A(f)(4)

      Pub. L. 97–216 struck out subpar. (B) which directed the Secretary to prescribe amounts deductible (without substantiation) pursuant to last sentence of section 162(a) and that no other provisions of this title could permit such a deduction for any taxable year of amounts in excess of the amounts determined to be appropriate under the circumstances

   Source evidence

   Code amendment note
   Subsec. (f)(4). Pub. L. 97–216 struck out “, etc.” after “section 162(a)(2)” in heading, struck out “(A) In general.—” before “Nothing in this section”, and struck out subpar. (B) which directed the Secretary to prescribe amounts deductible (without substantiation) pursuant to last sentence of section 162(a) and that no other provisions of this title could permit such a deduction for any taxable year of amounts in excess of the amounts determined to be appropriate under the circumstances.

9. 1982

   Subchapter S Revision Act of 1982

   Pub. L. 97–354 § 5(a)(26)(A) · 96 Stat. 1669

   Substituted · 26 U.S.C. § 280A(a); 26 U.S.C. § 280A(e)(1)

   Pub. L. 97–354, § 5(a)(26)(A), (B), substituted “an S corporation” for “an electing small business corporation”

   Source evidence

   Code amendment note
   Subsecs. (a), (e)(1). Pub. L. 97–354, § 5(a)(26)(A), (B), substituted “an S corporation” for “an electing small business corporation”.

   Enacted provision · exact public law section
   (A) Subsection (a) of section 280A (relating to disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.) is amended by striking out “an electing small business corporation,” and inserting in lieu thereof “an S corporation.”

10. 1982

    Subchapter S Revision Act of 1982

    Pub. L. 97–354 § 5(a)(26)(C) · 96 Stat. 1669

    1. Substituted · 26 U.S.C. § 280A(f)(2)

       Pub. L. 97–354, § 5(a)(26)(C), substituted “shareholders of S corporation” for “electing small business corporation” in subsec. heading

    2. Substituted · 26 U.S.C. § 280A(f)(2)

       Pub. L. 97–354, § 5(a)(26)(C), substituted “an S corporation” for “an electing small business corporation”

    3. Substituted · 26 U.S.C. § 280A(f)(2)

       Pub. L. 97–354, § 5(a)(26)(C), substituted “any shareholder of the S corporation” for “any shareholder of the electing small business corporation”

    Source evidence

    Code amendment note
    Subsec. (f)(2). Pub. L. 97–354, § 5(a)(26)(C), substituted “shareholders of S corporation” for “electing small business corporation” in subsec. heading, substituted “an S corporation” for “an electing small business corporation” and “any shareholder of the S corporation” for “any shareholder of the electing small business corporation”.

    Enacted provision · exact public law section
    (C) Paragraph (2) of section 280A(f) is amended to read as follows: “(2) Personal use by shareholders of S corporation.— In the case of an S corporation, subparagraphs (A) and (B) of subsection (d)(2) shall be applied by substituting ‘any shareholder of the S corporation’ for ‘the taxpayer’ each place it appears.”

11. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 143(c) · 100 Stat. 2085

    1. Added · 26 U.S.C. § 280A(c)(5)(B)

       Pub. L. 99–514, § 143(c), added subpar. (B)

    2. Struck · 26 U.S.C. § 280A(c)(5)(B)

       Pub. L. 99–514, § 143(c), struck out former subpar. (B) which read as follows: “the deductions allocable to such use which are allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was so used.”

    Source evidence

    Code amendment note
    Subsec. (c)(5)(B). Pub. L. 99–514, § 143(c), added subpar. (B) and struck out former subpar. (B) which read as follows: “the deductions allocable to such use which are allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was so used.”

    Enacted provision · exact public law section
    (c) Revision of Limitation on Deduction for Business Use of Home.— Paragraph (5) of section 280A(c) (relating to exceptions for certain business or rental use; limitation on deductions for such use) is amended by striking out subparagraph (B) and inserting in lieu thereof the following: “(B) the sum of— “(i) the deductions allocable to such use which are allowable under this chapter for the taxable year whether or not such unit (or portion thereof) was so used, and “(ii) the deductions allocable to the trade or business in which such use occurs (but which are not allocable to such use) for such taxable year. Any amount not allowable as a deduction under this chapter by reason of the preceding sentence shall be taken into account as a deduction (allocable to such use) under this chapter for the succeeding taxable year.”

12. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 143(b) · 100 Stat. 2085

    Added · 26 U.S.C. § 280A(c)(6)

    Pub. L. 99–514, § 143(b), added par. (6)

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 99–514, § 143(b), added par. (6).

    Enacted provision · exact public law section
    (b) Treatment of Rental to Employer Under Section 280A.— Subsection (c) of section 280A (relating to exceptions for certain business or rental use; limitation on deductions for such use) is amended by adding at the end thereof the following new paragraph: “(6) Treatment of rental to employer.— Paragraphs (1) and (3) shall not apply to any item which is attributable to the rental of the dwelling unit (or any portion thereof) by the taxpayer to his employer during any period in which the tax-payer uses the dwelling unit (or portion) in performing services as an employee of the employer.”

13. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 title I § 1001(h)(1) · 102 Stat. 3342

    1. Inserted · 26 U.S.C. § 280A(c)(5)

       Pub. L. 100–647 inserted “(or rental activity)” after “trade or business” in subpar. (B)(ii)

    2. Inserted · 26 U.S.C. § 280A(c)(5)

       Pub. L. 100–647 inserted at end “Any amount taken into account for any taxable year under the preceding sentence shall be subject to the limitation of the 1st sentence of this paragraph whether or not the dwelling unit is used as a residence during such taxable year.”

    Source evidence

    Code amendment note
    Subsec. (c)(5). Pub. L. 100–647 inserted “(or rental activity)” after “trade or business” in subpar. (B)(ii) and inserted at end “Any amount taken into account for any taxable year under the preceding sentence shall be subject to the limitation of the 1st sentence of this paragraph whether or not the dwelling unit is used as a residence during such taxable year.”

    Enacted provision · exact public law section
    (1) Paragraph (5) of section 280A(c) of the 1986 Code amended by adding at the end thereof the following new sentence: “Any amount taken into account for any taxable year under the preceding sentence shall be subject to the limitation of the 1st sentence of this paragraph whether or not the dwelling unit is used as a residence during such taxable year.”

14. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1704(t)(39) · 110 Stat. 1755

    Amended · 26 U.S.C. § 280A(c)(1)(A)

    Pub. L. 104–188, § 1704(t)(39), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the principal place of business for any trade or business of the taxpayer.”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A). Pub. L. 104–188, § 1704(t)(39), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the principal place of business for any trade or business of the taxpayer.”

    Enacted provision · exact public law section
    (39) Subparagraph (A) of section 280A(c)(1) is amended to read as follows: “(A) as the principal place of business for any trade or business of the taxpayer,”.

15. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1113(a) · 110 Stat. 1755

    Substituted · 26 U.S.C. § 280A(c)(2)

    Pub. L. 104–188, § 1113(a), substituted “inventory or product samples” for “inventory”

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 104–188, § 1113(a), substituted “inventory or product samples” for “inventory”.

    Enacted provision · exact public law section
    (a) In General.— Paragraph (2) of section 280A(c) is amended by striking “inventory” an inserting “inventory or product samples”.

16. 1997

    Pub. L. 105–34 § 932(a) · 111 Stat. 788

    Inserted · 26 U.S.C. § 280A(c)(1)

    Pub. L. 105–34, § 932(a), inserted at end “For purposes of subparagraph (A), the term ‘principal place of business’ includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 105–34, § 932(a), inserted at end “For purposes of subparagraph (A), the term ‘principal place of business’ includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.”

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 280A(c) is amended by adding at the end the following new sentence: “For purposes of subparagraph (A), the term ‘principal place of business’ includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.”.

    Effective date note
    Amendment by section 312(d)(1) of Pub. L. 105–34 applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as a note under section 121 of this title. Pub. L. 105–34, title IX, § 932(b), Aug. 5, 1997, 111 Stat. 881, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1998.”

17. 1997

    Pub. L. 105–34 § 312(d)(1) · 111 Stat. 788

    Substituted · 26 U.S.C. § 280A(d)(4)(A)

    Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”

    Source evidence

    Code amendment note
    Subsec. (d)(4)(A). Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”.

    Enacted provision · exact public law section
    (1) The following provisions of the Internal Revenue Code of 1986 are each amended by striking “section 1034” and inserting “section 121”: sections 25(e)(7), 56(e)(1)(A), 56(e)(3)(B)(i), 143(i)(1)(C)(i)(I), 163(h)(4)(A)(i)(I), 280A(d)(4)(A), 464(f)(3)(B)(i), 1033(h)(4), 1274(c)(3)(B), 6334(a)(13), and 7872(f)(11)(A).

    Effective date note
    Amendment by section 312(d)(1) of Pub. L. 105–34 applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as a note under section 121 of this title. Pub. L. 105–34, title IX, § 932(b), Aug. 5, 1997, 111 Stat. 881, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1998.”

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