Helping Small Business Owners and Home-Based Employees Claim the Home Office Tax Deduction
Monday, February 25, 2013
The Department of the Treasury and the U.S. Small Business Administration
recently announced new, simplified rules for small businesses eligible to claim
the home office tax deduction. According to the SBA, more than half of
all small businesses are operated out of the owner's home, and 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.
The new option for the home office deduction will be available starting with
the Tax Year 2013return, which most filers will complete in early 2014.
More information on the announcement is available here.