Simplified option for home office deduction.
Beginning in tax year 2013, taxpayers may use a simplified option when figuring the deduction for business use of their home. Details here.
Highlights of the simplified option:
- Standard deduction of $5 per square foot of home used for business (maximum 300 square feet).
- Allowable home-related itemized deductions claimed in full on Schedule A. (For example: Mortgage interest, real estate taxes).
- No home depreciation deduction or later recapture of depreciation for the years the simplified option is used.