Currently, many small businesses are unable to take full advantage of the home-office tax deduction because of its complexity. Surprise, surprise! Figuring that stuff out is near impossible for the 53 percent of American small business owners with home-based businesses. Even Albert Einstein was baffled by the tax code; it’s a complete joke.

Luckily Sen. Olympia J. Snowe, R-Maine, is attempting to alleviate some of the pain with her introduction of the Home Office Deduction, Simplification and Improvement Act of 2008 (S. 3371). The bill would create a standardized home-office tax deduction, allowing business owners to capitalize with ease. Basically they would be able to opt-in to a standard tax deduction rather than jump through hoops to get any kind of deduction at all.

The Senate would be doing the small business community a great service by helping them to simplify their already complex lives. On top of that, it would be setting an example of tax simplification for the rest of the U.S. government to follow. Unfortunately the bill is currently in committee, so it may be a while before any real change is enacted. Good luck S.3371!

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