2013 Home Office Deductions

Many homeowners know that having an office in the house can be a deduction under certain circumstances. Traditionally, if something gets red-flagged for audit of a homeowner’s deductions, it is the one for a home office. Yet, if deducted correctly, it can be as safe a deduction as the more typical ones. Homeowners can deduct a percentage of their mortgage, utilities and home repairs in direct proportion to the amount of their home that is set aside as office space.

For this deduction to work, here are a few guidelines when deducting your home office expenses on your tax return:

·         It must be your principal place of business (the main place where you get most of your work done)

·         It must be used exclusively for business (No TVs, no video games, no craft corner.)

·         It must be regularly used for business

·         The size and use claimed needs to be realistic. Six hundred square feet in a 1200 square-foot house may not be realistic.

As of 2013, the IRS has simplified the method of computing business use of your home. The standard method used previously had been complex easily misunderstood by small business owners that felt it was too burdensome and problematic. Also, a reason for the reputation of the deductible has as an audit-magnet. The IRS claims the new simplified option can “significantly reduce recordkeeping burden by allowing a qualified taxpayer to multiply a prescribed rate by the allowable square footage of the office” in lieu of determining actual expenses. For a full explanation of tax deductions for your home office refer to Publication 587, Business Use of Your Home .

As a homeowner using this new option, you will not be able to depreciate the part of the home you use in your business. Yet, if you are a homeowner who itemizes your deductions, you can still claim mortgage interest, real estate taxes and any casualty losses on their home on Schedule A.

If you use the simplified option, you can write off $5.00 per square foot up to 300 square feet of home-office space. If your home office is more than 300 square feet, or if you want to take a depreciation deduction for the office space, then you will want to use the standard option. And, if you still want to depreciate the office space in your home, you will need to continue to use the standard option for such detailed calculations.

Be aware, when you sell your house, you will have to pay back any depreciation you took and it’s taxed at around 25%. Since the ‘90s, federal tax law has permitted homeowners to exclude from tax up to $250,000 per person in profits from the sale of a personal residence that has been lived in for at least two of the five years prior to its use. However, the space or room in your home that you dedicated to business use and depreciated must be “recaptured” when you sell as it does not qualify for the home sale tax exclusion.

The new home office deduction is simpler but smaller. However, as we’ve seen above, the added savings from keeping the additional records and claiming depreciation may not be worth the effort to hold out for the larger portion from the standard method. The home office deduction is easier to claim for the 2013 calendar year, but you won’t be able to use the simplification until you fill out your tax return in 2014.

Destin Florida Voted Best Family Beach by Travel Magazine

Crab Island

According to Travel Magazine online Destin, Florida was voted Best Family Beach Vacation, for more information and photos visit: http://www.travelchannel.com/destinations/florida/photos/destin-discover-floridas-emerald-coast

It’s no wonder that Destin, Florida has become a premiere vacation destination that keeps families coming back to the area year after year.  Residing on the beautiful white sand beaches and emerald waters of the Gulf of Mexico this area has been termed “The World’s Luckiest Fishing Village”.

For those who love to have fun on the water Crab Island is where you can anchor your boat, go fishing, swimming and party with locals and tourists. Grab a bite to eat at one of the restaurants and listen to live music on board the Crab Island boats.  Anchor your boat onshore and build a sandcastle or work on your suntan.

Overlooking Crab Island is Harborwalk Village where you can find waterfront restaurants, upscale shopping boutiques, water sport rentals, dolphin cruises, clubs and nightlife, weekly fireworks and live entertainment.

Just up the road is Big Kahuna’s Waterpark and Adventure Park with water slides, a lazy river, wave pool, go carts, miniature golf and more fun than should be allowed to have in one day.

For those who love shopping the Destin Commons has all the latest fashion and accessory finds.  Popular stores include the trendy Luxe Apothetique, Express, BeBe, Sephora, Black House White Market, Brighton, Michael Stars, Hollister, American Eagle, Bass Pro Shop and Belk to mention just a few.  Stop by one of the restaurants and grab a bite to eat before catching a movie at the AMC theater.

A few minutes away is Baytowne Wharf where you can stroll the cobblestone boardwalk and watch beautiful sunsets over the Choctawhatchee Bay.  Upscale beachfront restaurants with bay views, a dueling piano bar and several nightclubs will keep you entertained well into the night.

Silver Sands Premium Outlets are home to 110 luxury designer brands including Michael Kors, Coach, Juicy Couture, BCBG, Sax 5th Avenue, Fossil, Dooney and Bourke, J.Crew and Cole Haan to name just a few.

There’s an endless supply of attractions and activities in Destin, Florida – that’s what makes this the ultimate vacation destination in Northwest Florida!

Visit  http://www.travelchannel.com/destinations/florida/photos/destin-discover-floridas-emerald-coast for more information and photos.

 

Destin Harbor a Great Weekend Get-A-Way!

Destin Harbor

Destin is a great place to get-a-way and spend a weekend relaxing is on the white sand beaches and clear emerald waters of the Gulf of Mexico.  Rent a boat at the Destin Harbor and enjoy the festivities at Crab Island where locals and visitors soak up the sun, catch Gulf fish and enjoy time with friends and family.

Gulf of Mexico Sunset

The Emerald Grande at HarborWalk Village overlooks the shimmering Gulf waters and boasts the most spectacular sunsets.  The Emerald Grande is a popular place for shopping, watersports, fishing and dining.

‘Sand Dollar’ Luxury Crystal Beach Rental Home

Sand Dollar Crystal Beach Rental Home

Click here to rent this fabulous ‘Sand Dollar’ Crystal Beach home

‘Sand Dollar’ is the perfect 6 bedroom home to reconnect with family & friends in Crystal Beach.  Decorated in Pottery Barn furnishings with linen curtains and slip-covered furniture the neutral color palette makes this home light and airy. The open floor plan has spectacular amenities including Brazilian cherry floors, brushed nickel fixtures and granite countertops. Two living areas, a dining table that seats up to 10 and a full kitchen is fully equipped with GE Stainless appliances, Cuisinart appliances & all cooking utensils.

The lush manicured backyard is the perfect place to work on your suntan or take a refreshing swim in the crystal clear 12’ x 24’ heated pool – you can even rinse in the Rainfall outdoor shower.  Plenty of outdoor furniture and a Hammock allow for beautiful sunsets, and the large gas grill is the perfect space to cook a steak and share a meal with friends and family.

Crystal Beach has two public beach accesses – one access is complete with a covered pavilion and restrooms all just a short walk away. The Crab Trap Restaurant is just a short stroll away for a cold drink & appetizers at the beach bar.

‘Sand Dollar’ has 4 adult bikes, wagon, beach cart, beach chairs, beach umbrellas, 2 pool floats, pool towels, reclining lounge chairs, hairdryers, games, movies and books all included to provide for the ultimate beach vacation experience. This house has all the amenities to reconnect with family and friends to provide for many beach memories.

View this home on: http://www.vrbo.com/35092