Giving the Little Guy a Break
Here is good news for those of you who work out of your home. Over the next couple years, you might not have to fork over as much cash to Uncle Sam each year. In addition to nice capital gains savings and benefits on the sale of a home, other ideas to help the vibrantly growing small-home-business segment are in the offing.
Preliminary reports about new tax rules indicate that they will overturn strict guidelines currently in effect. The new rules won't go into effect until 1999, but they will give more workers the ability to deduct the cost of an in-home office as well as health insurance premiums. By the year 2007, l00% of the premiums should be deductible.
According to analysts the new rules, which will cost the government more than $2.5 billion over the next 10 years, will allow deductions for people who use their home office for management and administrative duties if there is no other office to conduct such business.
