The IRS now offers a simplified process to claim a home office deduction tax up to $1,500.
The home office tax deduction is one of the most complicated calculations that taxpayers have to perform. The form runs over 40 lines and comes with dozens of pages of instructions. It’s also considered an audit “red flag” by many tax preparers. For these reasons, millions of the estimated 52 percent of small businesses in the U.S. that are home-based don’t take the deduction.
The IRS has now announced a streamlined process that some taxpayers may opt to follow. Instead of going through the lengthy process, the streamlined version allows you to deduct a standard $5 per square foot of home office space up to 300 square feet.
If you expect to have more than $1,500 in costs associated with your home office, you’ll have to complete the standard form.
Who is Mike Periu?
Mike Periu is the President of Proximo, LLC, a company that markets education and training programs to small business owners, entrepreneurs and consumers.
Mike Periu has been interviewed over 500 times for broadcasters including CNN, NBC TVE, RTE and others. Mike is a contributing author to OpenForum, Yahoo! Finanzas and the Huffington Post.
Mike graduated from Georgetown University in Washington, DC. His degrees are in Finance and International Business. In addition to his work Mike is also on the Board of the Council for Economic Education.
