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The IRS has announced that starting in 2014 when it is time to file 2013 business tax returns, business owners will have an easier short form to calculate home-office deductions.
The new option allows qualified taxpayers to deduct annually $5 per square foot of home-office space on up to 300 square feet, for as much as $1,500. This method is more straightforward than the current 43-line tax form, which asks the taxpayer to "see instructions" 17 times and requires calculations that account for mortgage interest, insurance, repairs, utilities and other costs associated with the home.
Hold on, writes Small Business reporter Emily Maltby of the Wall Street Journal. Accountants warn that the longer form may provide a few owners with bigger tax deductions. Franchise owners with home-office deductions will want to read her full article here.