Principal Place of Business

Principal Place of Business means:
the place where a person conducts most of his or her business activities, where the person does business most of time. Two primary considerations in deciding whether a home office is a person's principal place of business, and therefore deductible, are (1) the relative importance of the activities performed at each business location and (2) the amount of time spent at each place. Comparative analysis may reveal that there is no principal place of business, in which case home office expenses are not deductible. Former IRC (check if this IRC provision is current here) §217.

Description and Definition of Principal Place of Business

Your main office or work location. This is determined by how much of your working time you spend there and the importance of the work done there.

Resources

See Also

Further Reading

• Principal Place of Business in the West's Tax Law Dictionary
• Principal Place of Business in “A Dictionary of Taxation”