What is the Small Business Home Office Safe Harbor Deduction
The new business use of home safe harbor option has revolutionized the much maligned home office deduction. I am sure that many of you were like me when I start my small business, scared to death of the IRS. Currently, I run my CPA / Virtual CFO firm out of my home office so this is an essential deduction.
It was common practice for many accountants to talk clients out of the home office deduction because the IRS continually scrutinized the deduction. However, in 2013, taxpayers are generally permitted to use a simplified method of calculating home office deduction. Even now, when I talk to clients, they want to know how does the home office safe harbor work. Should they be willing to take the deduction?