do read till the end - The IRS's contribution to the War on Drugs

[David Farber <farber () central cis upenn edu>]

From: lauren () reed edu (Lauren Wiener)
Subject: The IRS's contribution to the War on Drugs
Approved: funny () clarinet com


My accountant recently sent me a thick wad of photocopied pages about the IRS's
position on home offices, in which I (really, truly) found the following
startling bit.
        From _Federal Tax Coordinator_ 2d, 2/18/93-73, pp. 34,052B - 34,053,
        Section L-1311, "Residence Used for Business" [footnotes omitted]:


"Even though a taxpayer may have to do part of her work at home, if another
location was her principal place of business, a deduction will be denied.
Thus, where taxpayer who ran a hot dog stand had to prepare meats, stews, and
soups at home because the stand wasn't big enough, the Tax Court denied a
deduction because sales, which produced her income, and final packaging for
consumption, took place at the hot dog stand.


"A pharmacist whose rented premises couldn't be expanded to include an office
couldn't get a deduction for his home office.


"A nurse-anesthetist who rendered service to patients only at hospitals
couldn't get a deduction, even though he had to do his record keeping,
billing, and professional reading at home.


"An emergency room doctor who treated patient at a hospital 35 hours a week was
denied deductions for a home office where he performed related tasks 5 hours a
week.


[In the next 8 paragraphs, home office deductions are denied to a housing court
judge, a professional actor, a contractor, someone with muffler repair and
airplane leasing businesses, an office worker whose employer supplied her with
home office equipment, airline pilots, an engineer, and a licensed real estate
person.  We finally come to our lone success...]


"A drug dealer was entitled to a home office deduction with respect to a
portion of his apartment where it was his only place of business and he made
substantial use of it in his dealings in amphetamines, cocaine, and marijuana."


Perhaps I'm in the wrong business?
                                        -- Lauren Ruth Wiener, writer