Categories: General Tax Terms
Home Office Safe Harbor Rule
The Home Office Safe Harbor Rule is a provision that simplifies the calculation of home office deductions for taxpayers who use part of their home for business purposes.
Instead of calculating actual expenses, such as utilities and mortgage interest, taxpayers can elect to use a standard deduction rate set by the IRS. As of the current regulations, the safe harbor rate is $5 per square foot of home office space, up to a maximum of 300 square feet, allowing for a maximum deduction of $1,500.
This approach streamlines the process for individuals who qualify, making it easier to claim home office deductions without extensive record-keeping or complicated calculations.
« Back to Glossary Index