The IRS has released Revenue Procedure 2013-13 announcing a more streamlined method for taxpayer home offices to offset the tax reporting structure that even the IRS considers “complex and burdensome”.

Beginning with 2013, qualified taxpayers may now use an optional “safe harbor” method to claim an office in home, limited to $1,500.  This method only looks as the square footage used, and allows a deduction of $5 per square foot (up to 300 ft.).  Recordkeeping of actual expenses, and claiming of depreciation, is not required, and the Schedule A for mortgage interest and property taxes remain unchanged. 

However, while this may (at first glance) sound like a benefit to the taxpayer, it is worth talking this over with your tax preparer to determine whether the safe harbor method makes sense for you and your home business.