The IRS just made taking a home office deduction that much easier. It recently announced a simple new option for tax years 2013 and forward.
All taxpayers may now choose to calculate a home office deduction using a simplified “safe harbor” method. You just multiply the allowable square footage of qualified dwelling space you use for business purposes (not to exceed 300 square feet) x $5.00. So the maximum deduction becomes $1,500.00.1,2
While you still have to meet basic IRS criteria for taking a home office deduction in the first place, this simple new option is a breeze compared to tackling 43 lines worth of Form 8829. Still, if you have some software handy, you might want to run some numbers the old way just to see which way might give you the most savings. (Visit the web pages mentioned in the footnotes below for more details.)
If you have any concerns about your tax or financial situation on your mind, contact us today. We’re here for you.
