Claiming Home Office Tax Deduction Easier In 2014
In the past, complicated forms have made it difficult to claim a home office deduction with the Internal revenue Service. The tax bureau was quick to scrutinize these claims for issues. However, that process will be much simpler when filing tax forms in 2014.
Home office deduction
All entrepreneurs and small company owners who want to deduct rooms in their homes on their taxes will have it easier here soon. The IRS is simplifying the procedure.
In 2010, the most recent years statistics are accessible for, 3.4 million Americans claimed deductions for home offices, according to the Internal Revenue Service.
Section 280A of the tax code allows working class individuals to deduct expenses for an office in a private home if the room is: "The principal place of business of a trade or business, as a place where you meet with patients, clients, or consumers in the normal course of your business, or your work as an employee, but only if the use of the home office is for the benefit of your employer."
Simplifying the procedure
It used to be that people would spend hours filling out Form 8829 in order to figure out how much of the home could possibly be deducted from taxes. It was a long process.
In 2014, those calculations will be made easier. Working class individuals can claim $5 for every square foot of the room for up to 300 square feet, or $1,500.
Smaller businesses and entrepreneurs will save millions of hours in paperwork by making the change, which the Internal Revenue Service is happy about.
A ton of happy campers
A trade group for entrepreneurs, The National Association for the Self-Employed, had enthusiastic words for the tax code upgrade.
"This is terrific news for the 52 percent of all small business that work from home, who fight every day to meet their bottom lines while continuing to contribute to the economy," said Kristie Arslan, who heads the group. "The previous calculation for the deduction was cumbersome and time consuming for America's smallest business and year after year hard-earned dollars were left on the table."
The changes will be applied to 2013 returns filed in early 2014.
Home office deduction
All entrepreneurs and small company owners who want to deduct rooms in their homes on their taxes will have it easier here soon. The IRS is simplifying the procedure.
In 2010, the most recent years statistics are accessible for, 3.4 million Americans claimed deductions for home offices, according to the Internal Revenue Service.
Section 280A of the tax code allows working class individuals to deduct expenses for an office in a private home if the room is: "The principal place of business of a trade or business, as a place where you meet with patients, clients, or consumers in the normal course of your business, or your work as an employee, but only if the use of the home office is for the benefit of your employer."
Simplifying the procedure
It used to be that people would spend hours filling out Form 8829 in order to figure out how much of the home could possibly be deducted from taxes. It was a long process.
In 2014, those calculations will be made easier. Working class individuals can claim $5 for every square foot of the room for up to 300 square feet, or $1,500.
Smaller businesses and entrepreneurs will save millions of hours in paperwork by making the change, which the Internal Revenue Service is happy about.
A ton of happy campers
A trade group for entrepreneurs, The National Association for the Self-Employed, had enthusiastic words for the tax code upgrade.
"This is terrific news for the 52 percent of all small business that work from home, who fight every day to meet their bottom lines while continuing to contribute to the economy," said Kristie Arslan, who heads the group. "The previous calculation for the deduction was cumbersome and time consuming for America's smallest business and year after year hard-earned dollars were left on the table."
The changes will be applied to 2013 returns filed in early 2014.
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posted by Vittoria @ October 15, 2013
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