Bills Would Simplify Home Office Tax Deduction
Under the current tax code, even if a taxpayer muddles through the home office deduction work sheet, they find the deduction cannot be taken if they have used the home office for non-business purposes, like making a personal phone call or surfing the Internet.
The twin bills would establish a simple, optional standard deduction for home office use and would allow taxpayers to take the deduction even if they used their home to interact with clients, regardless of whether the clients were physically present. In addition, the bill would allow for occasional use of the home office space for non-work-related activities.
"Home businesses already make up 53 percent of all small businesses, and, in our ever-changing economy, technological advances are allowing the ranks of home businesses to grow year after year," said Rep. Charles Gonzales, sponsor of the bill H.R. 7074 in a press release. "This is one issue facing Congress that can and should be solved with a clear, reasonable, and relatively simple fix."
Also See:
Tax Burden of the Wealthy Continues to Grow
Can Future Tax Rebates be Improved?
Comments
Is there any realistic chance that HR 7074 & s 3371 to simplify the home office deduction can be passed this late in the current session of Congress? Is this for real or just more political posturing?
Petr — Not a chance. The House has adjourned until Jan. 3, 2009, the start of the first session on the next Congress. However, the bill does have bi-partisan support and is even backed by the IRS itself. As a home-officer myself, I think this bill will pass.
Robert