Tax Breaks for the Home Office
Before now, the Service was very strict in saying that the home office had to be the principal place of business--which had been interpreted as the only place of business.
But in a move signaling again a paradigm shift for the Service, anyone who spends time in a home office doing paperwork or handling other matters may now qualify for at least some deductions. This is especially important for professionals who bring work home to complete because they cannot find time to do so during the regular work day.
The changes are reflected in the Taxpayer Relief Act of 1997 .