2018 Tax Year

Areli has a qualifying home office. The office is 500 square feet and the entire house is 2,500 square feet. Use the following information to determine her allowable home office deduction:

Net income from self-employment, before home office deduction $ 150,000

Expenses from home (all listed at 100%):

Home mortgage interest 12,000

Property taxes 4,000

Homeowners insurance 2,500

Utilities 2,200

Depreciation on office portion of home 1,100

Select one:

a. $5,240

b. $4,140

c. $4,260

d. $21,800