H. R. 1827
IN THE HOUSE OF REPRESENTATIVES
May 11, 2011
Mr. Schrader (for himself and Mr. Kind) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide a standard home office deduction.
This Act may be cited as the
Home Office Deduction Simplification
Standard deduction for business use of home
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:
Standard home office deduction
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.
Standard home office deduction amount
For purposes of this paragraph, the standard home office deduction is the lesser of—
the gross income derived from the individual’s trade or business for which such use occurs.
In the case of any taxable year beginning in a calendar year after 2012, the dollar amount in subparagraph (B)(i) shall be increased by an amount equal to—
such dollar amount, multiplied by
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
1992 in subparagraph (B) thereof.
The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.