Many small business owners work out of their home. The IRS announced in January that taking the home office deduction on your 2013 tax return will become much simpler. Tax payers will have the option to calculate the deduction based on $5 per square foot of home office space. The maximum allowable deduction using this method will be 300 square feet or $1500. So, if you’re home office deduction is less than $1500 this is a great option since the current method requires painstaking itemization and complicated calculations. You still must meet the same criteria to take the deduction – including that the office must be used, “exclusively and regularly for business”. Much more information related to this new option can be found on irs.gov.
