IRS simplifies home office deduction in 2013
In a move to reduce the record-keeping and time consuming burden of claiming the home office deduction for businesses, the IRS released Revenue Procedure 2013-13 today to offer an alternative to calculating the deduction. The usual regular and exclusive use tests still apply, but the revised ‘short-form’ is touted as being a simplified option for the 2013 and future tax years. Today’s IRS-issued Newswire reads:
“The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses by an estimated 1.6 million hours annually.
“This is a common-sense rule to provide taxpayers an easier way to calculate and claim the home office deduction,” said Acting IRS Commissioner Steven T. Miller. “The IRS continues to look for similar ways to combat complexity and encourages people to look at this option as they consider tax planning in 2013.”
