Are you sure you want to delete this post?
I wanted to throw this out there from the IRS's site itself. So, this is coming straight from the horses mouth. This would be for anyone who has a small home-based business. If you want to simplify your tax deductions without having to fill out that 43 line form, then this might interest you.
Granted, there is a cap of $1,500 (based on $5 a square foot for up to 300 sq feet) but if you have a small business in the first place, this just might be the ticket. This would definitely help take the sting off of paperwork and record keeping. Instead of the large form filling, the number crunching and depreciation mumbo jumbo, all you have to do is fill out a worksheet if you are choosing the simplified method. Once done, plug the results into your tax return.
Keep in mind that homeowners using the simple method cannot depreciate the portion of their home used in a trade or business. What they can claim is real estate taxes, casualty losses on the home as itemized deductions, as well as mortgage interest. Also, expenses such as advertising, supplies and wages paid out to employees are fulling deductible.
Does anyone out there have a small business that would qualify for this? If so, it would be great hearing your take.