IRS Offers Simple Way to Deduct Your Home Office
If you work out of your home and set aside a dedicated area for business, you may be able to use a simplified method for claiming a deduction on your 1040 individual tax return.Using the simplified approach, you’re allowed a deduction of $5-per-square-foot of home office space, up to 300 square feet (or $1,500).If you’re filing fairly straightforward deductions, this strategy will help cut down paperwork. But if you’re claiming more deductions, we recommend using the 43-line Form 8829.Some drawbacks exist to simplifying, such as no longer being able to depreciate a portion of your home; but, you can still claim mortgage expenses and real estate taxes with your itemized deductions on Schedule A.Business expenses not related to your home, such as advertising and employee wages, remain fully deductible.For more information, view the IRS video on the Simplified Home Office Deduction or Publication 587.A small business ourselves, Patrick & Robinson CPAs has served Northeast Florida’s private sector for more than 34 years. For help with your individual or business tax filing, contact our knowledgeable tax accountant team: Office@CPAsite.com or 904-396-5400.
