Simplified Home Office Deduction

The IRS has announced a new simplified, optional method of claiming a home office deduction (Rev. Proc. 2013-13IR- 2013-5). Over three million taxpayers claimed deductions for business use of a home in 2010, which normally requires the taxpayer to fill out the 43-line Form 8829. Under the new procedure, a significantly simplified form is used. The new method is expected to reduce paperwork and recordkeeping for small businesses by an estimated 1.6-million hours annually.

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