Friday, February 22, 2013

IRS Business Update


Two recent IRS announcements could affect your business.

HOME-OFFICE DEDUCTION SIMPLIFIED. Starting this year,
taxpayers who use a portion of their home regularly and
exclusively for business may opt to use a simplified
method for computing their home-office deduction.
Instead of complex calculations for allocating expenses,
the simplified method allows $5 a square foot for up to
300 square feet for the home office. The deduction is
capped at $1,500 a year. Under the simplified method,
no depreciation of the home is allowed, but all business
expenses not related to the home (such as advertising,
supplies, and employee wages) are still fully deductible.

EXTENSION OF MARCH 1 DEADLINE. Farmers and fishermen
aren't required to make quarterly estimated tax payments
if they file their tax return and pay taxes due by
March 1 of the following year. Because this year's tax
filing has been delayed while the IRS makes changes
necessitated by the late passage of the recent tax law,
the Service has extended this March 1 filing deadline
to April 15.

The filing extension will apply to all farmers and
fishermen, not just to those who had to wait for
late-released IRS forms. To qualify as a farmer or
fisherman for 2012, at least two-thirds of a taxpayer's
gross income for 2011 or 2012 must have come from
farming or fishing.

No comments:

Post a Comment