• Turner's Tax Service
  • Contact Us
  • Directions
  • Recent Tax Updates
  • Fees and Policies
  • Forms

IRS ANNOUNCES SIMPLIFIED OPTION FOR CLAIMING A HOME OFFICE

1/20/2013

0 Comments

 
The IRS has announced a simplified option for claiming a home office deduction beginning with 2013 returns.

The new optional deduction, capped at $1500 per year based on $5 a square foot for up to 300 square feet, is intended to reduce thepaperwork and recordkeeping burden on small businesses.

Currently claiming a home office deduction requires a fairly complex calculation of allocated expenses, depreciation and carryovers of unused deductions.  Homeowners using the new option cannot depreciate the portion of their home used in a trade or business and will claim allowable mortgage interest, real estate taxes and casualy losses on the home as an itemized deduction and will not have to allocate those deductions between personal and business use.

The current requirement that a home office must be used regularly and exclusively for business remains in effect and the allowable deduction will be limited to gross income of the business.  Any excess deduction cannot be carried forward. 

Taxpayers will be allowed to switch methods annually but once a return is filed the method chosen for that year cannot be reversed.
0 Comments



Leave a Reply.

     

    Federal and state tax laws and regulations change regularly.  As we become aware of changes, we will post them here and, if you are a client who has provided us with an email address, we will also email them to you.

    Archives

    January 2025
    June 2023
    December 2022
    July 2021
    January 2021
    December 2020
    April 2020
    March 2020
    October 2019
    January 2019
    November 2018
    June 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    July 2017
    May 2017
    April 2017
    January 2016
    June 2015
    May 2015
    July 2014
    March 2014
    December 2013
    November 2013
    October 2013
    September 2013
    February 2013
    January 2013
    August 2012
    January 2012
    June 2011
    August 2010
    January 2010
    September 2009

    Categories

    All

    RSS Feed

Proudly powered by Weebly