Question
Cindy maintains an office in her home that comprises 5% (200 square feet) of the total floor space. Gross income for her business is $42,000
-
Cindy maintains an office in her home that comprises 5% (200 square feet) of the total floor space. Gross income for her business is $42,000 and her residence expenses are as follows:
Depreciation (based on 5% business use)$ 450
Interest on mortgage 4,000
Operating expenses 2,200
Real property taxes 2,400
Part 1 - What is Cindys office in the home deduction based on the Regular Method?
Part 2 - What is Cindy's office in the home deduction based on the Simplied Method?
Part 3 - Which method should Cindy choose?
Cindy maintains an office in her home that comprises 5% (200 square feet) of the total floor space. Gross income for her business is $42,000 and her residence expenses are as follows:
Depreciation (based on 5% business use)$ 450
Interest on mortgage 4,000
Operating expenses 2,200
Real property taxes 2,400
Part 1 - What is Cindys office in the home deduction based on the Regular Method?
Part 2 - What is Cindy's office in the home deduction based on the Simplied Method?
Part 3 - Which method should Cindy choose?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
