Home Office Deduction

Beginning in 2013, you can avoid record keeping for your home office by electing the safe harbor method for determining the home office deduction.  Rather than calculating, allocating and substantiating actual expenses, you can simply deduct $5.00 per square foot, up to 300 feet.

$5 x 300 = $1,500 deduction for qualified business use of home office.  Easy and simple, no record keeping needed.  Of course, if your expenses are greater than that, you will want to keep the necessary records and maximize your true expense.

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