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Best
Home-Office Deduction
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Comparison
IRS Optional Method with Actual-Expense Method
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Replace the information in the white spaces.
See results here.
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AFTER-TAX
Cash Savings
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IRS
optional home-office deduction
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Actual
expense home-office deduction
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Information
you need to enter:
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Federal
income tax rate
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Self-employment
tax rate (see below)
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State
income tax rate
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14.13%
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Square
feet of office space
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2.68%
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%
of home that's office space
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0.00%
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Price
paid for home plus improvements
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%
of price for the house only
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Enter office only amts separate
from amts for entire home.
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Office
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Entire
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Only
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Home
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Mortgage
interest
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Real
property taxes
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Homeowners'
insurance
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Utilities
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Repairs
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Other
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Scroll down, more info below
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Your self-employment tax rate
is one of the following three:
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1. 14.13% on Sch. C income of
$123,119 or less
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2. 2.68% on Sch. C income that
exceeds $123,119
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3. 0.0% if you operate as
corporation and get reimbursed by corporation for home office.
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For details,
see the article
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New IRS Optional Method for Home-Office Tax Deduction: A
Good Deal?
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That's
it. You're done. See the calculations below if you like details, or simply
view your results above.
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CALCULATION
1; IRS Optional Amount
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Enter
square feet of office (Limited to 300)
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IRS
optional rate per square foot
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$5
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IRS
optional home-office deduction
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Tax rate
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Cash
savings
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CALCULATION
2: Actual expenses
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Office
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Home
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Office
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Office $$
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Tax
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Cash
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Only
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Only
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Percent
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From %
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Total
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Rate
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Savings
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Mortgage
interest
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Real
property taxes
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Homeowners'
insurance
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Utilities
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Repairs
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Other
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Depreciation
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Totals
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