IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500
The Internal Revenue Service has recently announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes.
The exemption amounts for the individual alternative minimum tax (AMT) have been increased for 2012 under the American Taxpayer Relief Act of 2012 (ATRA, H.R. 8) , which was signed into law on 2 January 2013.
The AMT exemption amounts for 2012 are as follows:
Married individuals filing joint return ($78,750)
Unmarried individuals ($50,600)
Married individuals filing separate returns ($39,375)
The fiscal cliff is otherwise known as the sharp decline in the budget deficit that could have occurred beginning in 2013 due to increased taxes and reduced spending as required by previously enacted laws. The fiscal cliff was largely eliminated by the eleventh-hour passage of the American Taxpayer Relief Act of 2012.
Why Keep Records?
There are many reasons that you may keep records. The top reasons include tax purposes, insurance, and for getting a loan. Good record keeping will also help you: