Simplified Home Office Deduction

Simplified home office deduction.

Simplified home office deduction. Using the optional method you simply deduct 5 for every square foot of your home office. The aim of this option is to reduce paperwork and recordkeeping burdens on small businesses. The simplified method for determining the home office deduction is fairly straightforward.

The simplified deduction is optional. Standard deduction of 5 per square foot of home used for business maximum 300 square feet. The simplified method as announced in revenue procedure 2013 13 pdf is an easier way than the method provided in the internal revenue code the standard method to determine the amount of expenses you can deduct for a qualified business use of a home.

It merely simplifies the calculation and recordkeeping requirements of the allowable deduction. It s worth 5 for every square foot that makes up your office space. This simplified option does not change the criteria for who may claim a home office deduction.

The simplified home office deduction can be claimed starting in tax year 2013. The home office deduction is available for homeowners and renters and applies to all types of homes. Simplified option for taxable years starting on or after january 1 2013 filed beginning in 2014 you now have a simplified option for computing the home office deduction irs revenue procedure 2013 13 january 15 2013.

Fill out the 43 line form 8829 to claim a deduction. For anyone who wants to claim the simplified home office deduction the irs allows you to claim a deduction that s based on the square footage of your office. If you choose to use this method you cannot claim home office expenses using the regular method explained above.

Safe harbor home office deduction simplified method this is a simplified method for figuring your home office deduction. Original home office deduction. So it can only be used for offices up to 300 square feet.