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IRS Business Update

19 Feb Posted by in Newsletters | Comments
IRS Business Update
 
  • 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.

For details or assistance, give us a call.

Reminder, tax season is here!

Please bring your tax return documentation to us soon! Be aware that additional rush fees of 20-50% may apply for returns and late information received after March 31st. Thank you for your business!

Best Regards,

The Staff at K.P. Monaco & Associates

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