Frank Ellis has unveiled tips for claiming the home office deduction for the upcoming tax season in a new article published on americantaxservice.org.
September 04, 2015 — Tax specialist and planner Frank Ellis has published several tips for claiming the Home Office Deduction this tax season in an article on americantaxservice.org.
First, it’s important to know the square footage of the home and office. Auditors usually only need photos to verify the information. The author then goes on to help the reader determine the right method to use in sizing their space.
Ellis first explains how to calculate a percentage of the home. By using a formula, one can identify the entire square footage of the home office on top and that of the entire home on the bottom. This way taxpayers can derive a percentage of the space to deduct.
The author also explains how to use simplified square footage, using rules and rates per square foot issued by the IRS in 2013. He also reveals this rate was $5 per square foot, capped at 300 square feet, in 2014.
Other deductions are mentioned as well. The author says homeowners can deduct utilities, rent, insurance, mortgage interest, and property taxes. Also, the business portion for tax purchases can be depreciated as well. He also touches on the exclusion of services outside the home, which are not eligible for deductions.
Additional points are made. Taxpayers cannot deduct more than their profits. The requirement to fill out Form 8829 with a 1040, and other details on depreciation, are included.
The article also touches on what to keep in case there is an audit. Those who filed the home office deduction should have copies of Form 1098, property tax bills, utility and insurance bills, a copy of the lease, and receipts for other expenses deducted. The author also mentions H&R Block Online which provides the appropriate forms.
To learn more about the Home Office Deduction, go to http://americantaxservice.org/tips-for-claiming-the-home-office-deduction/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Contact Information
Frank Ellis
American Tax Service
945 East 8th Street Suite A
Traverse City, Michigan 49686
Website: http://americantaxservice.org