The Tax Advisor, in its August 2013 issue, provided a comparison of the two methods of deducting expenses for office-in-home.  Revenue Procedure 2013-13 offers taxpayers a new simplified method of calculating the office-in-home deduction.  Here is a comparison of the new ‘Safe Harbor’ method versus the traditional ‘actual’ method.


Actual Expenses Safe Harbor
Regular/Exclusive Use Required Required
Maximum square footage None 300 sq. ft.
Carryover allowed Yes, to the extent that current year expense exceed current-year income No
epreciation allowed Yes, to the extent of income No
Recordkeeping Detailed/cumbersome Minimal
Maximum annual deduction None $1,500