Home Office Deduction Simplification Act

Home Office Deduction Simplification Act - Amends the Internal Revenue Code to allow a taxpayer who uses a residence to conduct a trade or business a standard tax deduction equal to the lesser of $1,500 or the taxpayer's gross trade or business income derived from the business use of such residence.

[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1509 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1509

 To amend the Internal Revenue Code of 1986 to provide a standard home 
                           office deduction.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2009

  Mr. McHugh (for himself and Mr. Schrader) introduced the following 
      bill; which was referred to the Committee on Ways and Means

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a standard home 
                           office deduction.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Office Deduction Simplification 
Act''.

SEC. 2. STANDARD DEDUCTION FOR BUSINESS USE OF HOME.

    (a) In General.--Subsection (c) of section 280A of the Internal 
Revenue Code of 1986 (relating to disallowance of certain expenses in 
connection with business use of home, rental of vacation homes, etc.) 
is amended by adding at the end the following new paragraph:
            ``(7) Standard home office deduction.--
                    ``(A) In general.--In the case of an individual 
                that is allowed a deduction for the use of a home 
                office because of a use described in paragraphs (1), 
                (2), or (4) of this subsection, notwithstanding the 
                limitations of paragraph (5), if such individual elects 
                the application of this paragraph for the taxable year, 
                such individual shall be allowed a deduction equal to 
                the standard home office deduction for the taxable year 
                in lieu of the deductions otherwise allowable under 
                this chapter for such taxable year by reason of being 
                attributed to such use.
                    ``(B) Standard home office deduction amount.--For 
                purposes of this paragraph, the standard home office 
                deduction is the lesser of--
                            ``(i) $1,500, or
                            ``(ii) the gross income derived from the 
                        individual's trade or business for which such 
                        use occurs.
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2010, 
                the dollar amount in subparagraph (B)(i) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2009' for `1992' in 
                        subparagraph (B) thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $100.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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