Simplified Home Office Deduction

The IRS now gives you a choice in how to claim the deductions for your home office. You can calculate it the way you always have, based on the percentage of your home dedicated to your business activities, which requires you to track expenses such as utilities, insurance, and depreciation. Or you can use the IRS’s new simplified method, under which you take a straight $5 per square foot deduction, up to 300 square feet, for a maximum total deduction of $1500. Which method should you use? Most home base business owners, such as Real Estate Agents, and Sales Associate’s say you should run the numbers both ways and apply the calculation that’s most advantageous to you.

The simplified method is electable on a year-by-year basis. Whichever you choose, be sure to run it by your CPA or Attorney (for those of you who have one). The last thing you want to have happen is the IRS knocking at your door.

*GOD Speed*

Tom's Cropped photo (2)

http://www.tomurazrealtor.com
http://www.successudeserve.com

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