Discussion:Taxpayer Advocacy Panel Proposal

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TAP B06-005

Office-In-Home Deductions

Issue Statement:

The current requirements and forms to use Office-In-Home (OIH) 

deductions are complex and burdensome and taxpayers would benefit from a simple alternative offered as an option.

Goal Statement:

Our goal is to propose changes that: 

Could be implemented without a need for legislative action Reduce taxpayer burden and achieve significant cost savings by offering an option for those who choose to use it, by eliminating the need to file Form 8829, and Reduce the burden on the IRS in processing the more cumbersome forms

Proposal:

The Taxpayer Burden Reduction (TBR) committee of TAP 

proposes an optional flat dollar amount based deduction as an alternate to the current method of using Form 8829 to achieve this goal.

Kevinh5 (talk|edits) said:

21 August 2007
Would this be a lookup table? Like net income (before OIH) 0 to $50,000, deduction = $2,000; net income $50k - $100K, deduction = $4,000; etc.

Or would it be a flat amount for everyone?


What about high cost/low cost areas? 10% of a home in Hawaii or parts of California cost more to keep up (higher deduction) than 50% of a home in parts of Mississippi or Arkansas. Would it be fair to give the Californians a smaller (percentage wise) deduction than the Mississippians? In Mississippi, a $2,000 deduction may be 10% of income, but in California it may be less than 1%.

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