The IRS Simplifies the Home Office Deduction

homeofficedeductionIt doesn’t occur very often, but occasionally the IRS makes a change which actually is a simplification.  This may make you think of President Reagan’s famous quote “The nine most terrifying words in the English language are ‘I’m from the government, and I’m here to help.’  But this change is one which, for many taxpayers, will save them at a minimum a little time, and in some cases tax dollars.

You may be aware that the tax law allows a taxpayer a “Home Office Deduction,” if they use a part of their home “regularly and exclusively” for conducting business. The rules require that you must show that you use your home as your principal place of business, but even if you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction.