• NASE Members Speak Out on the Home Office Deduction in May’s Member Poll
• NAWBO Women’s Business Conference This Week

NASE Members Speak Out on the Home Office Deduction in May’s Member Poll

The complexity and burden of the home office deduction paperwork and fear of an IRS audit continue to hinder home-based business owners from receiving the deduction on federal tax returns, according to an online member poll by the National Association for the Self-Employed. With federal income tax overhaul approaching, the NASE encourages Congress to consider simplifying and clarifying the home office deduction for the nation’s many home-based businesses. “The home office deduction was enacted to help our nation’s micro-businesses, a vital part to this country’s economic growth,” said NASE president Robert Hughes. “In its current form, the deduction has become more burdensome than helpful and that needs to change. The NASE continues to work toward a fair tax system that is the least onerous for taxpayers.” More than half of the respondents (51 percent) have not utilized the home office deduction, citing their concern of an IRS tax audit as the number one reason for not utilizing the deduction. Other frequently cited reasons for not taking the deduction included the time-consuming and burdensome nature of the paper work, rigid criteria to qualify, and an ignorance of the deduction. NASE members overwhelmingly favored various proposals to change the home office deduction. Around three-quarters of respondents favored clarifying the instructions on the home office deduction tax form 8829 (72 percent) and simplification of the form (78 percent). Seventy-six percent of respondents favored the option of a standard $2,500 deduction for their home office. Over 80 percent of respondents felt that the criteria for claiming a home office deduction should be simplified and made less stringent so that more home-based business owners could take advantage of the deduction. “Home-based businesses are a rapidly expanding, important part of our economy,” said Kristie Darien, NASE executive director of the legislative office. “The NASE recognizes the needs of this segment of the business community and will continue to work toward a fair tax system for home-based business owners.” Eighty-three percent of the respondents to the online poll are currently running a business out of their homes. Of the total NASE membership (250,000 member businesses), about 48 percent own home-based businesses based on a 2003 member demographic poll. The NASE provides several resources to help home-based businesses navigate the home office deduction more easily. The TaxTalk benefit allows members to email tax questions directly to a CPA and receive a response within one business day. Additionally, NASE President Robert Hughes wrote Schedule C from A to Z, a line by line guide through the Schedule C and home office tax forms. Schedule C from A to Z can be purchased by NASE Members at www.NASE.org for $11.99. Non-members can find the tax guide on Amazon.com. To see the full results of the survey, visit http://my.nase.org/Survey/default.asp?SurveyID=3. Methodology: Posted in the members-only portal on the NASE Web site, the survey was available for members to take through the month of May. Over 600 NASE members opted-in to the non-scientific survey and members were prohibited from taking it more than once.

NAWBO Women’s Business Conference This Week

Executive director of the legislative office Kristie Darien and public affairs associate Katy Dyer will represent the National Association for the Self-Employed at the National Association of Women Business Owners (NAWBO) Women’s Business Conference this week. The conference involves focused breakout sessions to help women run their businesses and find balance between the work and personal spheres. This year’s conference will be in Orlando, Florida. To learn more about the National Association of Women Business Owners or the Women’s business conference, visit http://www.nawbo.org/.