The Illinois Business Daily filed a report on the Internal Revenue Service’s advice that home business owners should use the simplified method of claiming home office deduction for the business use of a home.
Since 2013, the optional simple deduction method for home office expenses will reduce the paperwork and record-keeping burden on small business owners. This deduction is capped at $1,500, and is based on $5 per square foot, for up to 300 square feet of home office space. All that is required is for the taxpayer to fill out a simple, short, worksheet to claim the deduction. It is a quick alternative to filing IRS Form 8829.
Business expenses such as advertising and supplies are still fully deductible with the simplified deduction method. Since the majority of home-based businesses do not file depreciation expenses, this simple method will reduce the tax burden on the taxpayer.
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There you have it. The IRS is reporting on a legitimate method to take the home-office deduction for the business use of your home. Reducing the record keeping requirements saves time by not having to process the lengthy IRS Form 8829. Therefore, you spend more time working your business and less time processing tax forms.
Now that is news Home Biz for Retirees can use.