‘(A) IN GENERAL- In the case of an individual who is allowed a deduction for the use of a portion of a dwelling unit as a business by reason of paragraph (1), (2), or (4), notwithstanding the limitations of paragraph (5), if such individual elects the application of this paragraph for the taxable year with respect to such dwelling unit, 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 paragraph (1), (2), or (4).
‘(B) STANDARD HOME OFFICE DEDUCTION-
‘(i) IN GENERAL- For purposes of this paragraph, the standard home office deduction is an amount equal to the product of--
‘(I) the applicable home office standard rate, and
‘(II) the square footage of the portion of the dwelling unit to which paragraph (1), (2), or (4) applies.
‘(ii) APPLICABLE HOME OFFICE STANDARD RATE- For purposes of this subparagraph, the term ‘applicable home office standard rate’ means the rate applicable to the taxpayer’s category of business, as determined and published by the Secretary for the 3 categories of businesses described in paragraphs (1), (2), and (4) for the taxable year.
‘(iii) MAXIMUM SQUARE FOOTAGE TAKEN INTO ACCOUNT- The Secretary shall determine and publish annually the maximum square footage that may be taken into account under clause (i)(II) for each of the 3 categories of businesses described in paragraphs (1), (2), and (4) for the taxable year.
‘(C) EFFECT OF ELECTION-
‘(i) GENERAL RULE- Except as provided in clause (ii), any election under this paragraph, once made by the taxpayer with respect to any dwelling unit, shall continue to apply with respect to such dwelling unit for each succeeding taxable year.
‘(ii) ONE-TIME ELECTION PER DWELLING UNIT- A taxpayer who elects the application of this paragraph in a taxable year with respect to any dwelling unit may revoke such application in a subsequent taxable year. After so revoking, the taxpayer may not elect the application of this paragraph with respect to such dwelling unit in any subsequent taxable year.
‘(D) DENIAL OF DOUBLE BENEFIT-
‘(i) IN GENERAL- Except as provided in clause (ii), in the case of a taxpayer who elects the application of this paragraph for the taxable year, no other deduction or credit shall be allowed under this subtitle for such taxable year for any amount attributable to the portion of a dwelling unit taken into account under this paragraph.
‘(ii) EXCEPTION FOR DISASTER LOSSES- A taxpayer who elects the application of this paragraph in any taxable year may take into account any disaster loss described in section 165(i) as a loss under section 165 for the applicable taxable year, in addition to the standard home office deduction under this paragraph for such taxable year.
‘(E) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph.’.
U.S. Congress - Text of S.3371 as Introduced in Senate Home Office Tax Deduction Simplification and Improvement Act of 2008
