Home Office Tax Simplification Act of 2002

Home Office Tax Simplification Act of 2002 - Amends the Internal Revenue Code to set a minimum deduction of $2,500 for the business use (or rental of) of a dwelling unit.

Repeals the requirement of a depreciation recapture on the sale of a principal residence.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5220 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5220

To amend the Internal Revenue Code of 1986 to allow a minimum deduction 
          for business use of a home, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2002

Mr. Collins (for himself and Mr. DeLay) introduced the following bill; 
         which was referred to the Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow a minimum deduction 
          for business use of a home, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Office Tax Simplification Act 
of 2002''.

SEC. 2. MINIMUM DEDUCTION FOR BUSINESS USE OF HOME.

    (a) In General.--Subsection (c) of section 280A of the Internal 
Revenue Code of 1986 (relating to disallowance of certain expenses in 
connection with business use of home, rental of vacation homes, etc.) 
is amended by adding at the end the following new paragraph:
            ``(7) Minimum deduction.--The deductions allowable by this 
        chapter by reason of being attributed to a use referred to in 
        paragraph (5) of a dwelling unit (before the application of 
        paragraph (5)) shall not be less than $2,500.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 3. REPEAL OF DEPRECIATION RECAPTURE ON SALE OF PRINCIPAL 
              RESIDENCE.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to exclusion of gain from sale of 
principal residence) is amended by striking paragraph (6) and by 
redesignating paragraphs (7), (8), and (9) and paragraphs (6), (7), and 
(8), respectively.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges in taxable years beginning after the date of the 
enactment of this Act.
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