Sydney qualifies for the home office deduction. Her office is 240 square feet and her entire home is 3,000 square feet. She earned a net profit of $2,500 from her business before deducting any home office expenses. During the year, she paid $9,600 of mortgage interest, $1,200 of property taxes, $800 for homeowner's insurance, and $2,400 for utilities. The home was purchased 5 years ago for $180,000 (excluding the cost of the land) and has been used as a home office every year since purchase. Sydney chooses the actual expense method for computing her home office deduction. What is the amount of her home office deduction for the year? (MACRSNepreciation % is 2.564%) O $1.644 O $5.735 O $1.489 O $2.500
Sydney qualifies for the home office deduction. Her office is 240 square feet and her entire home is 3,000 square feet. She earned a net profit of $2,500 from her business before deducting any home office expenses. During the year, she paid $9,600 of mortgage interest, $1,200 of property taxes, $800 for homeowner's insurance, and $2,400 for utilities. The home was purchased 5 years ago for $180,000 (excluding the cost of the land) and has been used as a home office every year since purchase. Sydney chooses the actual expense method for computing her home office deduction. What is the amount of her home office deduction for the year? (MACRSNepreciation % is 2.564%) O $1.644 O $5.735 O $1.489 O $2.500
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 20MCQ
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Transcribed Image Text:Sydney qualifies for the home office deduction. Her office is 240 square feet and her
entire home is 3,000 square feet. She earned a net profit of $2,500 from her business
before deducting any home office expenses. During the year, she paid $9,600 of
mortgage interest, $1,200 of property taxes, $800 for homeowner's insurance, and
$2,400 for utilities. The home was purchased 5 years ago for $180,000 (excluding the
cost of the land) and has been used as a home office every year since purchase. Sydney
chooses the actual expense method for computing her home office deduction. What is
the amount of her home office deduction for the year? (MACRSNepreciation % is
2.564%)
O $1,644
O $5.735
O $1.489
O $2,500
O $1,120
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