Business Opportunities Weblog

June 17, 2008 by Rich Whittle | 1 Comment

Business First of Buffalo:

A New York congressman has introduced a bill that would offer a standard $1,500 deduction to taxpayers who work out of an office in their homes.

The bill from Rep. John McHugh, a Republican, is backed by the National Association for the Self-Employed. It also has won the support of the U.S. Small Business Administration’s Office of Advocacy.

Taxpayers currently can take a deduction for home-office expenses if they use part of their home exclusively for business. But less than half of the people who would qualify for the deduction take it, according to the IRS’ taxpayer advocacy office, because of the law’s complexity and strict record-keeping requirements.

A standard deduction of $1,500, which would rise in future years along with inflation, could encourage more small-business owners to take the deduction, McHugh says in a release. It also would be optional, allowing business owners to continue to itemize their deductions if they want.

According to NASE’s Web site, this is the third effort backed by the organization to simplify the home office deduction. The previous two attempts failed amid concerns about revenue and taxpayer abuse.

Photo by evobrained.

In Small Biz, Taxes, Work at Home | 1 Comment