Save Money With Your Home Office
If you’re eligible, a home office deduction can save you big bucks at tax time. If you’re not, claiming it can get you in big trouble.
According to the U.S. Bureau of Labor Statistics over 18 million Americans operate home based businesses. Two million people claim a home office deduction according to the IRS. Obviously more people could legally claim the deduction but do not.
Since the 2013 tax year, taxpayers could opt to use the simplified option for the home office deduction. With the simplified option, you could claim a standard deduction of $5 per square foot of home used for business up to a maximum 300 square feet. The deduction applies to all types of homes and is available if to you if you are a homeowner or renter.
Many people whose small businesses qualify them for a home office deduction are afraid to take it because they’ve heard it will trigger an audit. The home office deduction is not a red flag for an IRS audit. But if you deserve it, take advantage. These tips can help you determine if you qualify and rest easy when you do.
We can help you claim your home office so you get back as much as possible! Need some advice? Call us today! 256.489.1478 or schedule an appointment below.