Have the rules for home office deduction changed for 2016?

[Hal_Al · Accepted solution]

No.

There was a simplified method added a few years ago. It's use is optional. Individual taxpayers who elect this method can deduct an amount determined by multiplying the allowable square footage by $5. The allowable square footage is the portion of the house used in a qualified business use, but not to exceed 300 square feet. Therefore, the maximum a taxpayer can deduct annually under the safe harbor is $1,500. The IRS may update the $5 allowance from time to time, but it is not inflation adjusted. Because the up-to-$1,500 amount is a safe harbor, taxpayers who use the safe harbor cannot also deduct actual expenses related to qualified business use of the home for that year; however, business expenses that are unrelated to the use of the home (such as advertising) can be deducted. - See more at: http://www.journalofaccountancy.com/issues/2013/jul/20137228.html#sthash.Gka1nT2t.dpuf