IRS announces simplified Home Office deduction method

Office in HomeHome Office deductions have always been, shall we say, a little complicated to figure out.  IRS recently announced that for 2013, a person that qualifies for the Home Office deduction, may take $5 per square foot of Home Office space up to a maximum of 300 square feet.  This “per square foot” deduction replaces keeping up with a percentage of your utilities, repairs, depreciation, mortgage interest (or rent), taxes and other related expenses.  Just as in the past, deduction for Home Office is only allowed if the business portion is exclusively used on a regular basis for business.  This method will help some (especially the organizationally impaired) but may result in a lower deduction than the percentage of actual expenses allowed if a person elects to keep records. can help you simply keep up with the detailed records so your tax professional can help you decide which method is best for you.


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One Response to “IRS announces simplified Home Office deduction method”

  1. Damon Says:

    This is so long overdue, imho. Those of us classified as “organizationally impaired” have been losing out to not being able to readily quantify dedicated space and expenses. Even with this as an option, it still sounds like the best offense is a good defense in keeping the best records possible to prove your deductions conclusively.

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