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Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with
Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. The home office is 300 square feet and the entire house is 4,500 square feet. Brooke incurred the following home-related expenses during the year. Brooke Itemizes her deductions and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Unless Indicated otherwise, assume Brooke uses the actual expense method to compute home office expenses. Real property taxes Interest on home mortgago Operating expenses of home Depreciation Repairs to hone theater room $ 3,600 14,000 5,000 12,000 1,000 e. Assume that Brooke uses the simplified method for computing home office expenses. If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction and what home office expenses, if any, would she carry over to next year? (Leave no answer blank. Enter zero if applicable.) Home office expenses deduction Home office expenses carried forward
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