# CengageNOWv2| Online teaching and learning resource from Cengage Leaming8/28/2019-1 home office deduction limitation: \$--slified method: \$8/28/2019CengageNOWv2| Online teaching and learning resource from Cengage Leaning50. PR.03-21Problem 3-21Office in the Home (LO 3.11)Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office andproperly allocates the following expenses to her office:Depreciation\$1,500Utilities500Real estate taxes325500Mortgage interest (100 percent deductible)a. Assume that Cindy earns income of \$4,400 from her business for the year before deducting home office expenses.She has no other expenses associated with the business.Calculate Cindy's deduction for home office expenses.\$b. Assume that Cindy earns income of \$2,600 from her business during the year before deducting home officeexpenses.Calculate Cindy's deduction for home office expenses.\$

Question
236 views

Question #50

check_circle

Step 1

As Cindy is self employed and doing business from her home office, she is entitled to deduct home office expenses against the revenues earned.

Step 2

1 a.  The total of allocated home office expenses are \$2825.( \$1500+500...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in