Lance Drury Law
Ste. Genevieve 573-883-3056
Columbia 573-886-8900
St. Louis 314-200-0003

Simplified Home Office Deduction Calculation Approved by IRS

Who would have thought that the IRS would make taxes easier? It happened with an additional and simpler option for calculating home office deductions.  The new option goes into effect in the 2013 tax year and is in reference to Form 8829.Previously, home office deductions specified on Form 8829 involved a complicated and, at times, vague calculation.  The new deduction is based on $5/sq ft. of office space used.  The maximum deduction is $1500 per person, correspoding to a home office of 300 square feet.DetailsRather than replacing the previous, complicated home office deduction calculation scheme, this change will supplement it. Taxpayers retain the option to use the older formula.  It is predicted that many taxpayers are likely to accept the new simpler home office deduction calculation.  The IRS estimates that the resulting time saved in preparing taxes will be roughly 1.6 million hours.Married couples may use the home office deduction sparately.  In other words, each spouse may deduct up to 300 square feet at $5/sq ft. for home office space.  Essentially, married couples may claim up to a $3000 deduction for their home office(s).Proceed With CautionThere is a catch to using the new deduction calculation.  Insurance, depreciation, repairs and other expenses related to home office upkeep are not deductible with this new option.  MOrtgage interest, casualty losses and property taxes still remain legitimate itemized deductions.Additionally, change in formula for calculating a home offiec deduction does not alter what needs to happen to qualify for a "home office." Regular and exclusive business use remains a requirement, as does a deduction cap set by the bueiness's yearly gross income.Lastly, no matter its forumula, the home office deduction does not guarantee an audit but the odds increase.  There are instances of legitimate and honest business operators who qualify for the deduction but elect not to take it.  It may happen tha tthe effective cost and stress of an audit, even if passed without problems, outweighs deduction benefits.

As Seen On

NBC ABC Fox News Channel USA Today BIO - The Biography Channel CBS
NBC ABC Fox News Channel USA Today BIO - The Biography Channel CBS

Schedule a No Obligation Tax Consultation

Contact us today and get relief from your tax burden. You can also receive a FREE chapter from the best-selling book, Protect and Defend, just by requesting it from the form below.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Law Firm of Lance R. Drury
150 Merchant Street
Ste. Genevieve, MO 63670

Phone: 314-200-0003
Fax: 573-883-3095
Ste. Genevieve Law Office Map

St. Louis Office
3636 South Geyer Road, Suite 100
St. Louis, MO 63127

Phone: 314-200-0003
Fax: 314-238-7201

Columbia Office
3610 Buttonwood Drive, Suite 200
Columbia, MO 65201

Phone: 573-886-8900
Fax: 573-886-8901

Facebook Twitter You Tube Linked In Rss Feed
Review Us

Back to Top

"The choice of a lawyer is an important decision and should not be based solely upon advertisements."

- Lance

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.