Starting in tax year 2013, the IRS offers a new simplified
way of claiming a tax deduction for the business use of a home office. The new optional method allows taxpayers to
claim a standard deduction of $5 per square foot of their home used for
business. The maximum allowed size that
can be claimed is 300 square feet, which translates into a $1500 deduction.
Some of the advantages of using this option are that you no
longer have to split deductions such as mortgage interest and real estate taxes
between Schedules A and C (or F). Also,
there is no depreciation deduction to claim and no depreciation recapture when
you sell your home.
The criteria for claiming a home office deduction is
unchanged. My earlier article, Home Office Deduction, discusses the criteria in more detail.
The new simplified option may not be more beneficial to
everyone. For a more detailed discussion of this option see the IRS article Simplified Option for Home Office Deduction and Revenue Procedure 2013-13.
Brycast Financial Planning in Austin Texas --- We Can Help
Income Tax Preparation in Austin Texas
Income Tax Preparation in Austin Texas
contact: service@brycast.com http://www.brycast.com/ (512) 293-4170
Enrolled Agent; Investment Advisor Representative
