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 |