Most home based business people are afraid to take the home business deduction they legitimately deserve because they’re afraid it will trigger an IRS audit and therefore, it’s not worth the hassle according to a study by the National Association for the Self Employed.
The best thing the federal government could do for home-based businesses is to simplify the home-office deduction and clarify its instructions, according to the National Association for the Self-Employed. Many home-based business owners don’t use the deduction because they fear it will trigger an Internal Revenue Service audit, a recent survey of NASE members found. Others say it’s too time-consuming.
NASE wants Congress to establish a standard $2,500 deduction for home offices.
“In its current form, the deduction has become more burdensome than helpful,” said NASE president Robert Hughes. “That has to change.”