Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses: Real property taxes on residence: $2,400 Interest expense on residence: $4,000 Operating expenses of residence: $3,200 Depreciation on residence (based on 8% business use): $450. His office occupies 10% of the total floor space of his residence. Gross income from his business is $34,000.   Assuming that Steven uses the regular method, what is his allowable office in the home deduction?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses:

Real property taxes on residence: $2,400

Interest expense on residence: $4,000

Operating expenses of residence: $3,200

Depreciation on residence (based on 8% business use): $450.

His office occupies 10% of the total floor space of his residence. Gross income from his business is $34,000.

 

Assuming that Steven uses the regular method, what is his allowable office in the home deduction?

 

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