51. PR.03-22 Problem 3-22 Office in the Home (LO 3.11) Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Pete's total rent for the year is $9,600, and he pays utilities (other than telephone) of $2,500 for the year. Calculate Pete's deduction for home office expenses before the gross income limitation. Rent $ Utilities Total home office expenses $ 52. PR.03-23 Problem 3-23 Office in the Home (LO 3.11) Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 quare feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction. Assuming Randi uses the simplified method, calculate the largest deduction Randi can take for her home office (ignore self-employment taxes). https://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentld=1559623 25/27 nttps://v2.cengagenow.co.
51. PR.03-22 Problem 3-22 Office in the Home (LO 3.11) Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Pete's total rent for the year is $9,600, and he pays utilities (other than telephone) of $2,500 for the year. Calculate Pete's deduction for home office expenses before the gross income limitation. Rent $ Utilities Total home office expenses $ 52. PR.03-23 Problem 3-23 Office in the Home (LO 3.11) Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 quare feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction. Assuming Randi uses the simplified method, calculate the largest deduction Randi can take for her home office (ignore self-employment taxes). https://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentld=1559623 25/27 nttps://v2.cengagenow.co.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 30P
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#51 and 52
Transcribed Image Text:51. PR.03-22
Problem 3-22
Office in the Home (LO 3.11)
Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total
1,200 square feet in his apartment. Pete's total rent for the year is $9,600, and he pays utilities (other than telephone)
of $2,500 for the year.
Calculate Pete's deduction for home office expenses before the gross income limitation.
Rent
$
Utilities
Total home office expenses $
52. PR.03-23
Problem 3-23
Office in the Home (LO 3.11)
Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000
quare feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly
allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the
year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction.
Assuming Randi uses the simplified method, calculate the largest deduction Randi can take for her home office (ignore
self-employment taxes).
https://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentld=1559623
25/27
nttps://v2.cengagenow.co.
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