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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
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 2023 are as follows: Real property taxes Interest on home mortgage $4,000 4,800 Operating expenses of home 1,000 Melanie's residence cost $373,000 (excluding land) and has living space of 2,000 square feet, of which 29% (580 square feet) is devoted to business. The office was placed in service in February 2022, and under the Regular Method, Melanie had an unused office in the home deduction of $1,625 for 2022. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. to use for this problem. Round your final answer to nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? 5,615 X Feedback Check My Work The office in the home deduction can be determined in either of two ways: the Regular (actual expense) Methc harbor) Method.
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