The IRS claims that using the new simple saves taxpayers 1.6 billion hours in recordkeeping and tax return preparation (time that would otherwise be spent figuring the amount of actual expenses for a home office). But don’t shortchange yourself if actual expenses produce a larger deduction if you’re entitled to it. The maximum write-off under the simplified method is up to $1,500 ($5 per square foot up to 300 square feet of space used regularly and exclusively for business).
It’s Tax Time! Be sure and check out my tax books – find the complete list of books here. Plus, find the NEW supplements for each tax book right here on my site: J.K. Lasser’s Small Business Taxes 2014 and J.K. Lasser’s 1001 Deductions and Tax Breaks 2014.
