Treasury Streamlines Rules for Home Office Tax Deduction
The Department of the Treasury and the U.S. Small Business Administration (SBA) announced streamlined rules for entrepreneurs and small businesses eligible to claim the home office tax deduction. According to the SBA, more than half of all small businesses are home-based, yet many small business owners fail to claim the deduction because they either do not fully understand the provisions or find it too complicated to calculate the deduction. The new, streamlined method of calculating the home office tax deduction will allow qualified small businesses to deduct annually $5 per square foot of home office space up to 300 feet, for a much as $1,500 in deductions. Please take a moment to view Treasury’s announcement and feel free to share this information with your clients.
The new option for the home office deduction will be available starting with the Tax Year 2013 return, which most filers will complete in early 2014.
More information on the announcement is available here.