Home Office Deduction – Simplified Method
There is very little to be had anymore in this area and the IRS in an effort not to deal with it at all has prescribed the following simple method which can be used to quantify your home office deduction.
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Deduction for home office use of a portion of a residence allowed only if that portion isexclusively used on a regular basis for business purposes |
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Allowable square footage of home use for business (not to exceed 300 square feet) |
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Standard $5 per square foot used to determine home business deduction |
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Home-related itemized deductions claimed in full on Schedule A |
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No depreciation deduction |
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No recapture of depreciation upon sale of home |
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Deduction cannot exceed gross income from business use of home less business expenses |
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Amount in excess of gross income limitation may not be carried over |
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Loss carryover from use of regular method in prior year may not be claimed |
