h, any, of these expenses can the Spencers deduct? 12. Mel anie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax ad the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2018 are as follows: e and financial planning to Real property taxes Interest on home mortgage Operating expenses of home $3,600 3,800 900 Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The depreciation rate on $350,000 is.02564 this year. The office was placed in service in February 2017, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2017. Presuming sufficient net income from her consulting practice, what is Melanie's office in the home deduction under the: a. Regular Method. b. Simplified Method