ATR is happy to support S. 2488, the “Working Parents Home Office Act,” sponsored by Senator Mitch McConnell (R-Ky.)
Under current tax law, a taxpayer is allowed to claim a deduction for a home office related to a trade or business. Among other restrictions, tax law provides that the home office space must be exclusively (that is, 100 percent) business use.
That is not realistic for startup companies that get launched from home. In many cases, parents (especially Moms) starting a new business also have to take care of children at home, often in very close proximity to a child (like a baby).
S. 2488 would loosen the “exclusive business use” home office requirement in this case. It would allow for incidental parental child care in a home office, while preserving the ability of stay-at-home entrepreneurs to deduct their home office in full.
ATR encourages all pro-taxpayer senators to support and co-sponsor this common sense legislation.