In the past, intricate forms have made it challenging to claim a home office deduction with the Internal revenue Service. The tax bureau was quick to scrutinize these claims for troubles. However, that procedure will be much easier when filing tax forms in 2014.
Looking at a deduction for your home
The process of deducting a room as an office in a home is really complicated, according to the IRS. That is why the process will be simplified.
There were 3.4 million Americans in 2010 who deducted a home office on their taxes.
Section 280A of the tax code allows taxpayers to deduct expenses for an office in a private home if the room is: "The principal place of business of a trade or business, as a place where you meet with patients, clients, or customers in the normal course of your business, or your work as a worker, but only if the use of the home office is for the convenience of your employer."
Making it easier
However, in previous years, that was easier said than done. Working class individuals seeking the deduction were (and still are, when filing a 2012 tax return) required to fill out the 43-line Form 8829 to calculate expenditures and the portion of the home used for business. That procedure many found confusing and troublesome.
Taxpayers can take up to $1,500 in educations and $5 for every square foot of room for the deduction in 2014.
The Internal Revenue Service feels accomplished and like it has saved working class individuals millions of hours of complicated paperwork with the change.
Nice to know there is change
The change has gotten a ton of good press, specifically from the National Association for the Self-Employed.
"This is terrific news for the 52 percent of all small business that work from home, who fight every day to meet their bottom lines while continuing to contribute to the economy," said Kristie Arslan, who heads the group. "The previous calculation for the deduction was cumbersome and time consuming for America's smallest business and year after year hard-earned dollars were left on the table."
The changes will be put on 2013 returns filed in early 2014.
Looking at a deduction for your home
The process of deducting a room as an office in a home is really complicated, according to the IRS. That is why the process will be simplified.
There were 3.4 million Americans in 2010 who deducted a home office on their taxes.
Section 280A of the tax code allows taxpayers to deduct expenses for an office in a private home if the room is: "The principal place of business of a trade or business, as a place where you meet with patients, clients, or customers in the normal course of your business, or your work as a worker, but only if the use of the home office is for the convenience of your employer."
Making it easier
However, in previous years, that was easier said than done. Working class individuals seeking the deduction were (and still are, when filing a 2012 tax return) required to fill out the 43-line Form 8829 to calculate expenditures and the portion of the home used for business. That procedure many found confusing and troublesome.
Taxpayers can take up to $1,500 in educations and $5 for every square foot of room for the deduction in 2014.
The Internal Revenue Service feels accomplished and like it has saved working class individuals millions of hours of complicated paperwork with the change.
Nice to know there is change
The change has gotten a ton of good press, specifically from the National Association for the Self-Employed.
"This is terrific news for the 52 percent of all small business that work from home, who fight every day to meet their bottom lines while continuing to contribute to the economy," said Kristie Arslan, who heads the group. "The previous calculation for the deduction was cumbersome and time consuming for America's smallest business and year after year hard-earned dollars were left on the table."
The changes will be put on 2013 returns filed in early 2014.
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