Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice

Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2016 are as follows: Real Estate Property Taxes: 6500 Interest On Home mortgage: 7800 Operating expenses on home: 1625 Melanie's residence cost $356,500 (excluding land) and has living space of 2,000 square feet, of which 27% (540 square feet) is devoted to business. The office was placed in service in February 2015, and under the regular method, Melanie had an unused office in the home deduction of $775 for 2015. Presuming sufficient net income from her consulting practice. a. What is Melanie's office in the home deduction under the regular method. A.) Round your answer to nearest whole dollar. b. What is Melanie's office in the home deduction under the simplified method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions