I’ve never taken the home-office deduction, because it’s so difficult to calculate. I might have to reconsider.
The Internal Revenue Service has announced a simplified, alternative method for determing the amount of expenses you can deduct for a qualified business use of a home.
“The standard method has some calculation, allocation, and substantiation requirements that can be complex and burdensome for small business owners,” the IRS says. “The simplified method is intended to reduce that burden.”
You may elect to use the simplified method for taxable years beginning on or after January 1, 2013. (The standard method still can be used.)