Amanda is a self-employed newspaper columnist who does her work exclusively from a home office. Amanda had a bad year and her taxable income from her business is only $2,000 before the home office expenses this year. Her office takes up 300 square feet of her 1,200 square feet apartment. The total expenses for her apartment are $8,000 for rent, $1,000 for utilities, $200 of renter’s insurance, and $800 for pest control and other maintenance. What is Amanda’s home office deduction? Please show your calculations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Amanda is a self-employed newspaper columnist who does her work exclusively from a home office. Amanda had a bad year and her taxable income from her business is only $2,000 before the home office expenses this year. Her office takes up 300 square feet of her 1,200 square feet apartment. The total expenses for her apartment are $8,000 for rent, $1,000 for utilities, $200 of renter’s insurance, and $800 for pest control and other maintenance. What is Amanda’s home office deduction? Please show your calculations.

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