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Did You Know?
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The IRS has announced a simplified method for owners of business based at home to calculate their deductions for business use of the home. This change will apply to the nearly 3.4 million taxpayers who claimed such deductions in 2010.
The new option allows the taxpayer to calculate the deduction at $5 per quare foot up to 300 square feet, for a cap of $1,500. The current method requires taxpayers to fill out a 43-line Form 8829 with complex calculations. The new form is much simpler.
Homeowners using the new option cannot depreciate the part of their home used in the business, but the can claim certain mortgage interest and real estate taxes as itemized deductions. Please note that restrictions on the home office deduction still apply (IRS Newswire).
If you have questions about how this new option will affect, please contact us either by email or phone. Check the "About Our Firm" tab for detailed contact information.
Last Updated by Trae Long on 2013-01-30 08:32:26 AM