The purpose of this comment is to discuss the relatively short history of Internal Revenue Code § 280A and to discuss the cases leading up to the United States Supreme Court decision of Commissioner v. Soliman. The scope of the discussion will be limited to I.R.C. § 280A(c)(1)(A), which provides for a home office deduction if the dwelling unit is exclusively used on a regular basis and is the principal place of business for any trade or business. As will be discussed below, the Supreme Court has developed various standards to determine whether a home office deduction will be allowed. The traditional test is an objective "focal point test." The modem test, however, under Soliman is a subjective test in which a court will consider two factors to determine whether the taxpayer's home is his principal place of business. The Soliman case has significantly altered the course of the home office deduction. The Supreme Court has narrowed the window of this deduction in order to obtain fixed standards to allow or disallow a deduction. This comment will argue that the application of this decision will result in an unequal impact among taxpayers solely for the purpose of judicial efficiency. In addition, the decision and its impact on the availability of the home office deduction will be discussed in detail.
Robert J. Gerlack,
What Has the Supreme Court Done - The Home Office Deductions Is Virtually Eliminated after Soliman,
41 Clev. St. L. Rev.
available at http://engagedscholarship.csuohio.edu/clevstlrev/vol41/iss4/7