The Real Deal Miami

IRS streamlines work-from-home deductions

New “safe harbor” option is based on workspace square footage
By Kenneth R. Harney | January 25, 2013 03:00PM

Home office (Source: Home Office Design Blog)

If you’re one of the millions of homeowners and renters who work or run a business from the place you live, here’s some good news on taxes: The Internal Revenue Service wants to make it easier for you to file for deductions on the business-related use of your home. Rather than the complicated 43-line form you now have to fill out to claim a write-off — the instructions alone take up four pages of text and involve computations ranging from depreciation to utility bill expense allocations — the IRS has come up with a much simpler option: What it calls a “safe harbor” method that allows you to measure the square footage of your business space and apply for a deduction. [more]