Question
1) 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
1) 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: His office occupies 420 sq ft of floor space in his residence. Gross income from his business is $34,000. Assuming that Steven uses the simplified method, what is his allowable office in the home deduction?
2)
Jon uses his automobile 80% for his business that he operates as a sole proprietorship. He drove a total of 15,000 miles (12,000 busiess, 3,000 personal) and paid the following amounts for his vehicle:
Parking at clients offices $ 240
Auto Insurance 1,500
Auto club Dues 180
Oil Changes and Tune-ups 280
Repairs 1,160
Depreciation allowable 2,050
Fines incurred while traveling for business 320
Gasoline 2,800
a. What is Jons 2020 deduction for using his car if he uses the automatic (standard milleage) method?
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