FF liability. Assignment Problem Six - 8 (Work Space In Home Costs And CCA) and earns approximately $70,000 annually. To supplement his income, Billy started to teach music Billy Jow is a music instructor at a local high school in your area. He is employed by the school board on April 1, 2020, to a number of children in the neighbourhood in the evenings and on weekends. what expenses are deductible. Billy does not mind paying his fair share of income taxes, but he Billy comes to you for advice on how he should report this supplementary teaching income and wants to pay no more than he has to. From discussions with friends, he understands that he may be entitled to claim a portion of the costs of his home. His home is approximately 2,000 square feet in size. The den is approximately 200 square feet. Since he was not using the den in his home, he decided to use it for this supplementary teaching. From April 1, 2020, to December 31, 2020, Billy earned $5,700 in music fees. He has chosen December 31 as his year end and has incurred the following costs since April 1: $ 250 Purchase Of Music Books 1,000 Supplies (Paper, Pens, Etc.) 350 Tuxedo For Students' Performances Snacks For Students (Cookies, Pretzels, Candies, Milk, Etc.) 250 Utilities For Home (Heat, Light, And Water) 3,500 Mortgage Interest Paid 11,000 Repairs And Maintenance For Home 2,600 Software Program To Assist In Teaching Music 300 Electric Piano And Bench 5,000 $24,250 Total Billy is currently using the software program on an old computer that he uses mainly to watch YouTube videos. He is considering the purchase of a new computer solely for teaching purposes if the teaching generates enough income. Required: A. Briefly explain when expenses for a work space in the home are deductible. B. Based on the information given, compute the minimum net business income or loss that Billy should report in his 2020 personal income tax return.