The IRS is reducing the recordkeeping required for the home-office deduction, effective for 2013. Taxpayers who qualify may use a new optional deduction calculated at $5 a square foot for up to 300 square feet of an area in a home that is used regularly and exclusively for business. The deduction is capped at $1,500 a year.
Taxpayers opting for the simplified deduction cannot depreciate a portion of the home as they can under the other method. However, business expenses not related to the home, such as advertising, supplies, and employee wages are still fully deductible. This simplified option is available starting with the 2013 tax return which will be filed in 2014.
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Past Articles
NEW View an online version of our 2013 NEW YEAR Tax Planning Letter:
- Client Letter
- Put the pieces together for tax savings in 2013
- 2012 rules extended for most taxpayers
- What's New 2013
- Some tax benefits are time travelers
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