Working class individuals who work out of their homes have found it challenging previously to determine their home office deduction for the Internal Revenue Service. Additionally, the deduction is notorious for raising red-flags with the tax bureau. However, the IRS states that procedure will be made easier and less troublesome when filing taxes next season.
Home office deduction made easier
The procedure of deducting a room as an office in a home is really complicated, according to the Internal Revenue Service. That is why the procedure will be simplified.
There were 3.4 million Americans in 2010 who deducted a home office on their taxes.
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 customers in the normal course of your business, or your work as a worker, but only if the use of the home office is for the convenience of your employer."
Not so hard anymore
Working class individuals had to fill out the 43-line Form 8829 to determine what part of the home is really deducted for the business. This was really complicated and took a ton of work.
In 2014, it will be much less with $5 per square foot of space and up to 300 square feet.
Smaller businesses and entrepreneurs will save millions of hours in paperwork by making the change, which the IRS is happy about.
A ton of happy campers
The change has gotten a lot of good press, especially from the National Association for the Self-Employed.
"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 first returns to incorporate the change will be 2013 returns filed in 2014.
Home office deduction made easier
The procedure of deducting a room as an office in a home is really complicated, according to the Internal Revenue Service. That is why the procedure will be simplified.
There were 3.4 million Americans in 2010 who deducted a home office on their taxes.
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 customers in the normal course of your business, or your work as a worker, but only if the use of the home office is for the convenience of your employer."
Not so hard anymore
Working class individuals had to fill out the 43-line Form 8829 to determine what part of the home is really deducted for the business. This was really complicated and took a ton of work.
In 2014, it will be much less with $5 per square foot of space and up to 300 square feet.
Smaller businesses and entrepreneurs will save millions of hours in paperwork by making the change, which the IRS is happy about.
A ton of happy campers
The change has gotten a lot of good press, especially from the National Association for the Self-Employed.
"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 first returns to incorporate the change will be 2013 returns filed in 2014.
RSS Feed (xml)
Niciun comentariu:
Trimiteți un comentariu