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Alex is a self- employed designer who operates a qualifying office in his home which is 225 square feet. For 2023, Alex has $24, 000 gross income from his business and $17,000 of direct business expenses before the home office deduction. His allocable home office expenses are $2,000. What is Alex's maximum allowable home office deduction for 2023 using the simplified method?

Alex is a self- employed designer who operates a qualifying office in his home which is 225 square feet. For 2023, Alex has $24, 000 gross income from his business and $17,000 of direct business expenses before the home office deduction. His allocable home office expenses are $2,000. What is Alex's maximum allowable home office deduction for 2023 using the simplified method?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alex is a self-employed designer who operates a qualifying office in his home which is 225 square feet. For 2023, Alex has $24,000 gross income from his business and $17,000 of direct business expenses before the home office deduction. His allocable home office expenses are $2,000. What is Alex's maximum allowable home office deduction for 2023 using the simplified method?
Transcribed Image Text:Alex is a self-employed designer who operates a qualifying office in his home which is 225 square feet. For 2023, Alex has $24,000 gross income from his business and $17,000 of direct business expenses before the home office deduction. His allocable home office expenses are $2,000. What is Alex's maximum allowable home office deduction for 2023 using the simplified method?
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