Simpler Home Office Deduction for Self Employed
If you work at home or have a home-based business you should be aware of the new simpler option for calculating the business-use-of-home deduction. The new option makes record keeping easier as you will no longer be required to list specific home expenses. Instead a standard rate per square foot may be claimed up to 300 square feet ($1500.00)
The new method allows you to take the full interest and tax deduction on Schedule A, but it does not allow a depreciation deduction nor does it allow loss carryovers. If you want to avoid depreciation deduction recapture on selling the home, electing the simplified deduction is a way to do so.