Sybil is a self-employed artist who uses 10% of her residence as a studio. The shudio portion of her home is used excusively for busires and is treuerted by Customens on a regular basis. Sybil also uses her den as an office (10% of the total foor space of her home) to prepare bills and keep records. However, te den is used by her ghildren as a TV room. Sybi's net income from the sale of the artwork (other than her home office expenses) is 40,000 in the oument year. She incurs $1,400 of exienses directly related to the shudio (painting of the studio, window blinds, ete.) Sybil incurs the folowing expenses in the curent year eled to residence: Real estate taxes Mortgage interest Insurance Depreciation Repairs and utilities Total $2,000 5,000 500 3,500 1.000 12.000 How much of the above can Sybil deduct as home office expense?

Sybil is a self-employed artist who uses 10% of her residence as a studio. The shudio portion of her home is used excusively for busires and is treuerted by Customens on a regular basis. Sybil also uses her den as an office (10% of the total foor space of her home) to prepare bills and keep records. However, te den is used by her ghildren as a TV room. Sybi's net income from the sale of the artwork (other than her home office expenses) is 40,000 in the oument year. She incurs $1,400 of exienses directly related to the shudio (painting of the studio, window blinds, ete.) Sybil incurs the folowing expenses in the curent year eled to residence: Real estate taxes Mortgage interest Insurance Depreciation Repairs and utilities Total $2,000 5,000 500 3,500 1.000 12.000 How much of the above can Sybil deduct as home office expense?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 21P: Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home...

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