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1 Melanie is employed full-time as an accountant for a national hardware chain. She also has a private consulting practice, which provides tax advice and
1 Melanie is employed full-time as an accountant for a national hardware chain. She also has a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home are as follows: Real property taxes $3,600 Interest on home mortgage 3,800 Operating expenses of home 900 Depreciation allocated based on 20% business use $1,500 a. Melanie's income from consulting is $17,000, and the related expenses are $5,000. What is Melanies home office deduction before considering any AGI limitations? $Blank 1 b. How much of Melanies home office expenses can she claim as an itemized deduction? $Blank 2 c. Suppose Melanies income from consulting is only $8,000 and the related expenses are $5,000. What is the amount of expenses relating to Melanie's home office carried over to future years? $Blank 3
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