Small business owners who work out of spare bedrooms owe U.S. Representatives John McHugh and Kurt Schrader a debt of gratitude, according to the National Federation of Independent Business. The NFIB is happy that the Representatives introduced H.R. 1509, the Home Office Deduction Simplification Act.
Susan Eckerly, the NFIB’s senior vice president for federal public policy, explained in a statement, "The current home office deduction is way too complicated and time consuming. When tax deductions are too complex and burdensome, small business owners too often choose not to hassle with them . . . . The Home Office Deduction Simplification Act recognizes that a standard deduction is a much simpler and fairer way to allow business owners to use this deduction."
And that standard deduction will amount to $1,500 if Representatives McHugh and Schrader have their way.
What’s more, the deduction will apparently be tied to the cost of inflation, so small business owners don’t have to worry about the economy taking away this little gift sooner or later.
Eckerly seemed optimistic about getting H.R. 1509 turned into a law, so hopefully that’ll happen soon enough to reduce the burden on small business owners the next time taxes are due.