In the past, intricate forms have made it challenging to claim a home office deduction with the Internal revenue Service. The tax bureau was quick to scrutinize these claims for troubles. However, that procedure will be much simpler when filing tax forms in 2014.
Easier to deduct your home office
The procedure of deducting a room as an office in a home is really complicated, according to the IRS. That is why the procedure will be made easier.
The Internal Revenue Service reports that 3.4 million Americans deducted home offices as part of their taxes in 2010.
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."
Simplifying the procedure
It used to be that people would spend hours filling out Form 8829 to be able to determine how much of the home could be deducted from taxes. It was a long process.
In 2014, those calculations will be made easier. Taxpayers can claim $5 for every square foot of the room for up to 300 square feet, or $1,500.
The Internal Revenue Service states the form will also be much simpler to understand and to fill out. The Internal Revenue Service says the move will save small business and entrepreneurs 1.6 million hours a year in paperwork and record keeping.
Nice to know there is change
A trade group for entrepreneurs, The National Association for the Self-Employed, had passionate words for the tax code upgrade.
"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 2013 returns field in 2014 will be the first returns to handle the situation.
Easier to deduct your home office
The procedure of deducting a room as an office in a home is really complicated, according to the IRS. That is why the procedure will be made easier.
The Internal Revenue Service reports that 3.4 million Americans deducted home offices as part of their taxes in 2010.
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."
Simplifying the procedure
It used to be that people would spend hours filling out Form 8829 to be able to determine how much of the home could be deducted from taxes. It was a long process.
In 2014, those calculations will be made easier. Taxpayers can claim $5 for every square foot of the room for up to 300 square feet, or $1,500.
The Internal Revenue Service states the form will also be much simpler to understand and to fill out. The Internal Revenue Service says the move will save small business and entrepreneurs 1.6 million hours a year in paperwork and record keeping.
Nice to know there is change
A trade group for entrepreneurs, The National Association for the Self-Employed, had passionate words for the tax code upgrade.
"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 2013 returns field in 2014 will be the first returns to handle the situation.
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