Tuesday, February 4, 2014

Office in the Home - Simplified Deduction

Office in the Home
January 10, 2014
The IRS has added a new way to deduct your office in the home for those of you who don't want to track all of the details.  If your home office is less than 300 square feet they will allow a deduction of $1,500.  There are some advantages to this program.  First you get to deduct All of your Mortgage Interest and Real Estate taxes on your schedule A.  You don't lose part of it to Schedule C.  However, on the down side, if your business has a loss you don't get to carry the deduction forward to next year.

Remember the basic rules still apply.  The room or space must be "Regularly and Exclusively" used for business.  You can't pick your dining room table unless you won't use it for anything else.  One Thanksgiving Dinner (personal use) ruins your deduction.  

David Oase CPA

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