There’s some real hope that the Home Office Deduction Simplification Act, introduced in the House this past spring, might be gaining some traction. Twenty-eight representatives are cosponsoring the current version, about twice as many as the last time an act of this kind was introduced.
The bill would provide for a standard home office deduction of $1,500, to be taken in lieu of the much more complicated, calculated home office deduction. For those in the 15% tax bracket, this would translate into a tax savings of about $500 for those who aren’t currently taking the deduction because it can be so complicated.
As an accountant myself, I’ve always taken the home office deduction since I’ve been self-employed. But what a time saver a standard deduction will be!! No more tracking every utility bill to the penny, dividing out the costs by the percentage of square footage, and so on. And, personally, my home office deduction will actually be higher with a $1,500 standard deduction than if I had calculated it the old way. Yeah!!
Let’s keep our fingers crossed that this bill goes through 🙂
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.