Question
Elise is a self-employed business consultant who operates her business out of an office in her home. The home office passes the qualifying tests for
Elise is a self-employed business consultant who operates her business out of an office in her home. The home office passes the qualifying tests for deducting home office expenses. For the current tax year, Elise earns $90,000 from her business activities. She incurs $82,000 in supplies, travel expenses, wage expense, etc. Elise's mortgage interest and real estate taxes allocable to the home office space were determined to be $9,000. Also, other expenses including insurance, repairs and maintenance, utilities, and depreciation allocable to the home office space total $11,000. How much of the other expenses (insurance, repairs, etc.) can Elise deduct for the current year?
a. $11,000
b. $8,000
c. $9,000
d. $2,000
e. $- 0 -
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