Read More »
Tax Management
Tax Benefits from Hiring Children in the Family Business
Read More »
Farm Management Webinars Announced
Read More »
SEPARATING MINERAL INTERESTS FROM THE SURFACE MAY RESULT IN TWO REAL PROPERTY TAX BILLS
Read More »
Depreciation, Section 179 Expensing, and Accelerated First Year Depreciation Deductions
Read More »
Higher Gross Receipts May Require an Additional Tax to be Paid
Read More »
IRS Announces Simplified Option for Claiming Home Office Deduction Starting in 2013
By Larry Gearhardt, Director OSU Income Tax Schools
A new option provides eligible taxpayers an easier way to calculate and claim the home office deduction. Currently, they are required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions. Taxpayers claiming this optional deduction will complete a significantly simplified form whereby they can claim a flat rate of $5 per square foot up to a maximum of 300 square feet.
The current restriction that the home office be used regularly and EXCLUSIVELY for business still applies (this means that the kitchen table does not qualify). However, if you have a designated area in your home that you use regularly and exclusively for business, you can take advantage of this safe harbor. Other restrictions are that you cannot depreciate the portion of your home used as a business, but using the new option does not diminish your right to deduct allowable mortgage interest, real estate taxes, and casualty losses on the home as itemized deductions on Schedule A.
Business expenses unrelated to the home, such as advertising, supplies, and wages paid to employees are still fully deductible. The new simplified option is available starting with the 2013 tax year reported on returns filed in early 2014. Further details on the new option can be found in Revenue Procedure 2013-13, posted on the IRS website at irs.gov.
New Director of OSU Income Tax Schools Hired
Larry R. Gearhardt started on January 2, 2013 as the new Director of the Ohio State University Tax Schools. Larry was hired as a Field Specialist in Taxation in the College of Food, Agriculture and Environmental Sciences Extension. Before coming to Extension, he most recently was the Sr. Director of Legal and Local Affairs at the Ohio Farm Bureau. Larry received his juris doctorate from the University of Toledo College of Law and a BA in Business Administration from Wittenberg University in Springfield, Ohio. In 2011, Larry received the “Excellence in Agricultural Law” award from the American Agricultural Law Association. Larry lives in Miami County where he operates a 40-acre farm.
Contact information for Larry R. Gearhardt is:
Assistant Professor
Field Specialist: Taxation
34 Ag Admin Bldg.
2120 Fyffe Rd.
Columbus, Ohio 43210
(office) 614-292-2433
(cell) 614-309-8992
gearhardt.5@osu.edu
IRS’s New Competency Requirements for Registered Tax Return Preparer’s Struck Down by U.S. District Court
Read More »
Taxpayer Relief Act of 2012- What does it mean to Ohio Farmers?
Read More »
Tax Treatment of Income from Drought Related Livestock Sales
Read More »
2012 Agricultural Tax Issues Workshops to be held across Ohio on December 17, 2012
Read More »
Get Ready to Pay More–Tax Reductions Set to Expire in 2013!
Read More »
Can I Defer my 2012 Crop Insurance Check?
Read More »
Information presented above and where trade names are used, they are supplied with the understanding that no discrimination is intended and no endorsement by Ohio State University Extension is implied.
Ohio State University Extension embraces human diversity and is committed to ensuring that all research and related educational programs are available to clientele on a nondiscriminatory basis without regard to race, color, religion, sex, age, national origin, sexual orientation, gender identity or expression, disability, or veteran status. This statement is in accordance with United States Civil Rights Laws and the USDA.
Keith L. Smith, Ph.D., Associate Vice President for Agricultural Administration and Director, Ohio State University Extension TDD No. 800-589-8292 ( Ohio only) or 614-292-1868


