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August 17 A Standard $1,500 Deduction For Home Offices?Yeah, I know, these days there doesn't seem to be much to give small business owners hope. News reports say there are signs of recovery but we have yet to see any confirmation of this on our bottom line.
There are, however, some signs that this bad economy might lead to even more positive changes in the tax code. According to today's featured article from CNN Small Business, there is a bill circulating in Congress that would allow the owners of home businesses ("nearly half of America's firms") to opt for a standard $1,500 deduction for their expenses. Anyone who has calculated this deductions based on "measuring the office as a percentage of home size and multiplying relevant expenses by that fraction" will understand why most business owners find it easier to bypass this process and forego any associated tax benefits.
Well, according to the featured article this new standard $1,500 deduction for home offices is gaining support in Congress. So, full steam ahead people - it's time to contact your representatives!
A bill circulating through Congress aims to ease the process of writing off expenses for a home office.
By Ian Mount
August 14, 2009: 1:32 PM ET
The deduction process -- which involves measuring the office as a percentage of home size and multiplying relevant expenses by that fraction -- is just too complicated, the survey found.
To ease the process, Reps. John McHug, R-N.Y., and Kurt Schrader, D-Ore., introduced the Home Office Deduction Simplification Act last spring. The bill would create a standard $1,500 deduction, which owners could opt for over the messier version. It would translate into a tax savings of about $500 for those who aren't currently taking the deduction, says Keith Hall, tax adviser for the National Association for the Self-Employed. TrackbacksThe trackback URL for this entry is: http://smallbizcoop.spaces.live.com/blog/cns!CFF20A3C12635897!265.trak Weblogs that reference this entry
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