Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 square feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction. Assuming Randi uses the simplified (safe harbor) method, calculate the largest deduction Randi can take for her home office (ignore self-employment taxes). Overall home office deduction limitation: $ Home office deduction under simplified method: $
Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 square feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction. Assuming Randi uses the simplified (safe harbor) method, calculate the largest deduction Randi can take for her home office (ignore self-employment taxes). Overall home office deduction limitation: $ Home office deduction under simplified method: $
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 20MCQ
Related questions
Question
![Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 square feet of
her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office
total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of
$3,400 for the year before deducting any home office or supplies deduction.
Assuming Randi uses the simplified (safe harbor) method, calculate the largest deduction Randi can take for her home office (ignore
self-employment taxes).
Overall home office deduction limitation: $
Home office deduction under simplified method: $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f7da148-1e47-4177-8c96-41a2f440c67c%2F1cf16f37-73bd-4146-8440-9e8cac7a28e3%2F5bomljj.jpeg&w=3840&q=75)
Transcribed Image Text:Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 square feet of
her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office
total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of
$3,400 for the year before deducting any home office or supplies deduction.
Assuming Randi uses the simplified (safe harbor) method, calculate the largest deduction Randi can take for her home office (ignore
self-employment taxes).
Overall home office deduction limitation: $
Home office deduction under simplified method: $
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT