Cindy, who is self-employed, maintains an office in her home that comprises 12% (260 square feet) of total floor space. Gross income for her business is $45,650, and her residence expenses are as follows: Real property taxes $2,748 Interest on mortgage 4,580 Operating expenses 2,290 Depreciation (based on 12% business use) 7,955 If required, round your final answer to the nearest dollar. a. What is Cindy's office in the home deduction based on the regular method? $ b. What is Cindy's office in the home deduction based on the simplified method? $

Cindy, who is self-employed, maintains an office in her home that comprises 12% (260 square feet) of total floor space. Gross income for her business is $45,650, and her residence expenses are as follows: Real property taxes $2,748 Interest on mortgage 4,580 Operating expenses 2,290 Depreciation (based on 12% business use) 7,955 If required, round your final answer to the nearest dollar. a. What is Cindy's office in the home deduction based on the regular method? $ b. What is Cindy's office in the home deduction based on the simplified method? $

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 21CE

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