Title: HOME Act
Policy area: Taxation

Summary:
Helping Our Middle-Class Entrepreneurs Act or the HOME Act
This bill 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. The bill provides for an inflation adjustment to the standard deduction amount in calendar years beginning after 2017.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 290 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 290

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 2, 2017

Mr. Udall (for himself and Mr. Boozman) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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 ``Helping Our Middle-Class 
Entrepreneurs Act'' or the ``HOME 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 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 who 
                is allowed a deduction for the use of a home office 
                because of a use described in paragraph (1), (2), or 
                (4), 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 such use.
                    ``(B) Standard home office deduction.--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 2017, 
                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 `2016' 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 December 31, 2016.
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