Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Pete's total rent for the year is $9,600, and he pays utilities (other than telephone) of $2,500 for the year. Calculate Pete's deduction for home office expenses before the gross income limitation. Rent $ Utilities   Total home office expenses $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Pete's total rent for the year is $9,600, and he pays utilities (other than telephone) of $2,500 for the year.

Calculate Pete's deduction for home office expenses before the gross income limitation.

Rent $
Utilities  
Total home office expenses $
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