Helping Our Middle-Class Entrepreneurs Act

“(7) Standard home office deduction

“(A) In general—In the case of an individual who is allowed a deduction for the use of a home office because of a use described in paragraph (1), (2), or (4), notwithstanding the limitations of paragraph (5), if such individual elects the application of this paragraph for the taxable year, 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 such use.

“(B) Standard home office deduction—For purposes of this paragraph, the standard home office deduction is the lesser of—

“(i) $1,500, or

“(ii) the gross income derived from the individual’s trade or business for which such use occurs.

“(C) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2017, the dollar amount in subparagraph (B)(i) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “2016” for “1992” in subparagraph (B) thereof.”