Max Square Floor Home Office Write Off

You have the alternate choice of submitting a simplified deduction of a flat 5 per square foot of home office area claimed up to a 300 square foot 1 500 limit.

Max square floor home office write off.

So if you use a whole room or part of a room for conducting your business you need to figure out the percentage of your home devoted to your business activities. This simplified option does not change the criteria for who may claim a home office deduction. If the office measures 150 square feet for example and the total area of the house is 1 200 square feet your business percentage would be 12 5. It simply utilizes a formula based on the square footage of the business portion the studio home office of your home vs.

Beginning in tax year 2013 returns filed in 2014 taxpayers may use a simplified option when figuring the deduction for business use of their home. The percentage of office use is 120 square feet 1 200 square feet x 100 10. Generally when using the regular method deductions for a home office are based on the percentage of your home devoted to business use. For example if your home is 2000 square feet and your home office is 400 square feet your office space is 20 of the total area of your home.

Get the biggest tax write off for your home office. To do this you divide the square footage of your office space by the total square footage of the home. For example say your home office is 450 square feet and the dining room which is used for business. The total square footage of the house or apartment and then applies that percentage to all associated costs.

Thus all you need to do is measure the square footage of your home office. The traditional home office deduction is a fairly straightforward deduction to calculate on federal form 8829. Add the square footage of each room in the home that is used for business. It merely simplifies the calculation and recordkeeping requirements of the allowable deduction.

For example if your home office is 200 square feet you ll get a 1 000 deduction. As an example assume your home has 1 200 square feet and your office is a room that is 10 x 12 feet 120 square feet. Divide the number of rooms used for business by the total number of rooms in the home use this method if the number of rooms is about the same. Requirements to claim the home office deduction.

Find out the square footage of your home. That s all there is to it. You can only use this method if your home office is 300 square feet or less.