olanda and her husband Chris each have a home office. This is a dedicated space for their work.  Chris is employed by Brewer Inc (designated as an employee).  Yolanda has her own business (sole proprietor).  The total square footage of the home is 2,000.  Yolanda’s office 200 square feet and Chris’ office is 150 square feet.  Yolanda’s business has $100,000 gross income for the year and Chris earns $70,000 of wages.  Total utilities $500, mortgage interest paid $8,000, real estate taxes $3,000, total depreciation on home $1,000.   What is Yolanda’s home office deduction? Show you work and explain how you came to this conclusion.  What is Chris’ home office deduction? Show you work and explain how you came to this conclusion.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
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  1. olanda and her husband Chris each have a home office. This is a dedicated space for their work.  Chris is employed by Brewer Inc (designated as an employee).  Yolanda has her own business (sole proprietor).  The total square footage of the home is 2,000.  Yolanda’s office 200 square feet and Chris’ office is 150 square feet.  Yolanda’s business has $100,000 gross income for the year and Chris earns $70,000 of wages.  Total utilities $500, mortgage interest paid $8,000, real estate taxes $3,000, total depreciation on home $1,000.  
  2. What is Yolanda’s home office deduction? Show you work and explain how you came to this conclusion. 
  3. What is Chris’ home office deduction? Show you work and explain how you came to this conclusion.
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