Question
Jeri is a sole proprietor who has owned and operated a lighting design business for many years. She runs the business from her home, and
Jeri is a sole proprietor who has owned and operated a lighting design business for many years. She runs the business from her home, and in 2022, her business generated a net profit of $25,800. Jeri wants to deduct business-use-of-home expenses, and she meets the requirements to do so. During the year she paid $6,400 in interest on her home mortgage and $1,495 in real estate taxes. Jeris home office is 525 square feet, and her total home square footage is 1,800 square feet. The amount of allowable depreciation on the 525-foot area she used for her home office was $1,598. Using the actual expense method, what is Jeri\'s home office expense deduction? (Note: For simplicity, the home operating expenses in the question are limited to mortgage interest, real estate taxes, and depreciation.) Using the actual expense method, what is Jeri\'s home office expense deduction? (Note: For simplicity, the home operating expenses in the question are limited to mortgage interest, real estate taxes, and depreciation.)
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