Simplified Home Office Deduction
The IRS has announced a new simplified, optional method of claiming a home office deduction (Rev. Proc. 2013-13; IR- 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.