Question
Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes
Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes up 5% of all Bettys home and is used exclusively for her job. Smart Systems reimburses all of Bettys direct costs of maintaining the home office. Betty also has the following expenses associated with her home:
Expense | Amount |
Real property taxes on residence | $3,500 |
Interest expense on residence | 5,000 |
Operating expenses on residence | 1,800 |
Depreciation on residence (based on 5% home office use) | 150 |
Considering these facts, how much may Betty deduct from AGI on her tax return assuming she elects to itemize deductions?
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