Home Office Deduction Simplified Method

Using the optional method you simply deduct 5 for every square foot of your home office.

Home office deduction simplified method. Standard deduction of 5 per square foot of home used for business maximum 300 square feet. What is the simplified method for determining the home office deduction. If you want to use the simplified method your deduction is 5 x 150 sq.

The simplified home office deduction can be claimed starting in tax year 2013. The simplified method as announced in revenue procedure 2013 13 pdf is an easier way than the method provided in the internal revenue code the standard method to determine the amount of expenses you can deduct for a qualified business use of a home. For example if you have an office space of 150 square feet and your home is 1200 square feet you are under the maximum of 300 square feet for the simplified deduction so you have the option of taking either the simplified or the regular deduction.

However the deduction is capped at 1 500 per year. You receive a standard deduction of 5 per square foot up to 300 square feet the deduction can t exceed 1 500. The simplified method the simplified method for determining the home office deduction is fairly straightforward.

This simplified option does not change the criteria for who may claim a home office deduction. So it can only be used for offices up to 300 square feet. Highlights of the simplified option.