[Congressional Record (Bound Edition), Volume 154 (2008), Part 9]
[Extensions of Remarks]
[Pages 11893-11894]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCTION OF THE HOME OFFICE DEDUCTION SIMPLIFICATION ACT OF 2008

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                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                          Monday, June 9, 2008

  Mr. McHUGH. Madam Speaker, I rise today to introduce legislation, the 
Home Office Deduction Simplification Act of 2008, which is designed to 
reduce the complexity of the tax code and provide Americans with the 
ability to take a standard deduction for home office expenses.
  The tax code currently allows a deduction for home office expenses 
for self-employed taxpayers and employees who must use their

[[Page 11894]]

home for business purposes at their employer's request. However, 
according to the Internal Revenue Service's Office of the Taxpayer 
Advocate, only 2.7 million of the nearly 20 million Schedule C filers 
in tax year 2003 took a deduction for home office expenses, despite the 
fact that some 8.4 million Americans indicated they had one or more 
rooms used only for business.
  The Office of Taxpayer Advocate reports that the data raises the 
question as to whether or not eligible taxpayers are taking the 
deduction to which they are entitled. In addition, the Taxpayer 
Advocate notes that private industry has indicated that the rules and 
related forms regarding the home office deduction are too complex.
  As is often noted, our Nation's nearly 27 million small businesses 
are the backbone of our Nation's economy. They provide 51 percent of 
our Nation's private sector employment and 45 percent of its payroll 
and produce approximately 50 percent of the Nation's private, nonfarm 
GDP. Without question, they certainly are vital to the economy of New 
York's 23rd Congressional District, which I have the privilege of 
representing.
  To ensure that my constituents and those other Americans who are 
eligible to deduct home office expenses but have been deterred by the 
complexity of the current tax code actually take a deduction, I now 
introduce the Home Office Deduction Simplification Act. This bill would 
provide a standard deduction of $1,500, indexed to inflation, for home 
office expenses. Accordingly, I ask my colleagues to join with me to 
enact this important measure.

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