New York Congressman Introduces Legislation to Simplify the Home Office Deduction
Thursday June 26, 2008
New York congressman John M. McHugh announced that he has introduced legislation that is designed to simplify the business use of the home tax deduction. His Website points out that only about one third of those who are eligible to take the deduction actually file the forms needed to claim it.
Taking the deduction is no walk in the park - not even with the assistance of tax preparation software. The other problem is that it has long been speculated that claiming the office in home deduction can make you the target of an audit. McHugh's bill would make it possible to claim a standard deduction of $1500 instead of going through all the hoops that are now required. Additionally, the standard deduction would be indexed for inflation, so the amount could increase in future years. The bill, known as the Home Office Deduction Simplification Act, was referred to the Committee on Ways and Means for consideration.
NOW JUST WAIT ONE MINUTE! Back on March 27th, 2007 I told you about a bill on home office deductions, the Parents' Tax Relief Act of 2007, that would basically have done the same thing, only it was even better as it would have provided a simplified flat rate office-in-home deduction of either $2500 or the total profit from your home-based business, whichever is less. That bill also included wording that would have encouraged employers to offer telecommuting options. That was over a year ago! Where are we now? Introducing watered down legislation and staring at gas prices in excess of $4 per gallon, that's where.
A check of the status of the Parents' Tax Relief Act introduced last year indicates as of June 15th of 2008 "This bill is in the first step in the legislative process". In other words, it's still in committee.
Why is it that multiple bills have to be introduced that pertain to the same subject? And why is it that bills go into committee for years, never to be heard of again until a second, third, fourth, or fifth bill on the same subject surfaces? Of course, each time a similar bill is introduced, the politician or politicians responsible for introducing take all of the credit without mentioning the bills that are already in committee. Is this any way to run a democracy? Am I the only one fed up with this?
Contact Information for US Senators
Contact Information for US House of Representatives
Claiming Office in Home Tax Deductions
Taking the deduction is no walk in the park - not even with the assistance of tax preparation software. The other problem is that it has long been speculated that claiming the office in home deduction can make you the target of an audit. McHugh's bill would make it possible to claim a standard deduction of $1500 instead of going through all the hoops that are now required. Additionally, the standard deduction would be indexed for inflation, so the amount could increase in future years. The bill, known as the Home Office Deduction Simplification Act, was referred to the Committee on Ways and Means for consideration.
NOW JUST WAIT ONE MINUTE! Back on March 27th, 2007 I told you about a bill on home office deductions, the Parents' Tax Relief Act of 2007, that would basically have done the same thing, only it was even better as it would have provided a simplified flat rate office-in-home deduction of either $2500 or the total profit from your home-based business, whichever is less. That bill also included wording that would have encouraged employers to offer telecommuting options. That was over a year ago! Where are we now? Introducing watered down legislation and staring at gas prices in excess of $4 per gallon, that's where.
A check of the status of the Parents' Tax Relief Act introduced last year indicates as of June 15th of 2008 "This bill is in the first step in the legislative process". In other words, it's still in committee.
Why is it that multiple bills have to be introduced that pertain to the same subject? And why is it that bills go into committee for years, never to be heard of again until a second, third, fourth, or fifth bill on the same subject surfaces? Of course, each time a similar bill is introduced, the politician or politicians responsible for introducing take all of the credit without mentioning the bills that are already in committee. Is this any way to run a democracy? Am I the only one fed up with this?
Contact Information for US Senators
Contact Information for US House of Representatives
Claiming Office in Home Tax Deductions
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