Do you run a business out of your home and take the home office deduction? Well add yourself to the millions of homeowners and renters around the country who run a business out of their home. Some welcome news, the IRS will be making it easier to file for deductions on the business-related use of your home.
The new IRS option, which will be available starting in 2014, Â will allow owners and employees who work from home to deduct $5 per square foot of home office space per year, up to a maximum allowable space of 300 square feet. The write-off is capped at $1,500 per year. If your home office is larger than 300 square feet you can use the old method which is spelled out in IRS Form 8829 and available atÂ www.irs.gov.
When doing your taxes this year take a look at how much home office space you can write off because while the new rules are easier it might not be your best option to get the largest return.
â€“Mark Rutsteinâ€“ DC Real Estate Agentâ€“
Follow our blog atÂ www.iknowdc.com