1(a) Kevin is self employed and uses a space in his home exclusively for work. The space is 500 square feet. What would be his home office deduction if he used the simplified method of calculation? Ignore business income limitations.

		$1,500
		$500
		$2,500
		$2,000
		$1,000

1(b)

Julie works as at home and is self-employed. She uses 17% of her home as office space. She has the following housing expenses: Painting of office $600, mortgage interest total $3,200, property taxes $1,800, utilities $2,400, and depreciation (if 100% business use) of $5,000. Ignoring any income limitations, what is Julies home office deduction? Use actual expense method.

		$1,858
		$2,210
		$13,000
		$2,708

1(c)

Joan owns and rents a cabin near a local ski resort. Her family used the cabin for 40 days and rents the cabin for 60 days. Joan does not qualify for active participation, and any losses will be limited by passive loss rules. It generates $13,000 of income. She has the following expenses (use 365 days for the year):

• Property Taxes $2,500
• Mortgage Interest $5,000
• Utilities $1,200
• Insurance $500
• Yard maintenance $1,500
• Depreciation if property was 100% business $14,000

What is her total deduction related to the rental property? Assume she does not want any expenses to be limited by passive loss rules. (Hint: I am looking for the sum of deductions, not the profit or loss. Just the amount of deductions that will be taken against the $13,000 rental income.)

		$4,060
		$11,553
		$10,653
		$11,030