A realtor operates their business as a sole proprietorship and uses a 400 square foot spare room for a home office where administrative work is performed. The realtor has been using this horne office for several years. The realtor has an office outside of the home where clients are met. Assuming the net proft is $5,000 before the home office deduction, the sole proprietor's home office deduction using the simplified method is: 1500 0 300 2000