Owners of home-based businesses should find it easier to take a federal tax deduction for working from their house, under a new option announced last week by the Internal Revenue Service.
Instead of a 43-line form now used to fill out the so-called "home office deduction," taxpayers will have a simplified form to figure out what to claim for business use of their homes. The IRS said the new option, capped at $1,500 per year, will reduce the paperwork and record-keeping burden on small businesses by 1.6 million hours a year. The deduction is based on $5 per square foot for up to 300 square feet of space.
It applies to 2013 income taxes to be filed next year, not those filed this April.
Most Popular Stories
- High-Tech Home Theaters Undergoing a Revolution
- Amazon Prime Grabs Classic HBO TV Series
- Sales of New Homes Fell 14.5 Percent in March
- Procter & Gamble Income Up on Cost Cutting
- Obama Opens Japan Trip with Sushi Stop
- Boeing Flying High With Strong First Quarter
- Hollywood Bets Big Again on Summer Movies
- Google, SunPower Team Up on Solar Power
- FedEx Sued Over Deadly California Bus Crash
- Nestle, Superior Grocers Promote Healthy Meals