Simplified Home Office Deduction on 2013 Returns

Posted by Andy
The IRS has announced that instead of tracking actual expenses for your home office, beginning with your 2013 tax return (filed in Spring 2014) you can take a standard deduction for your home office.  It is calculated at $5/square foot of home office space.  While this will simplify the calculation and relieve some of the record keeping requirements, some have expressed concern that this understates the value of the home office and you would likely get a larger deduction if you stick with the old method of actual expenses.  Those who own their homes free and clear and don't have mortgage interest may also be the ones who would benefit under this rule change.
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