Question
Moduel 3 90. Mark Pari is a self-employed electrician who exclusively uses a room in his home to perform the administrative functions related to his
Moduel 3 90. Mark Pari is a self-employed electrician who exclusively uses a room in his home to
perform the administrative functions related to his business. The room is 250
square feet of the 2,500 total square feet of his home. Marks income from his
business before considering the cost of his home office is $62,890. He incurs the
following expenses related to his home:
Mortgage interest $10,000
Property taxes 1,500
Insurance 600
Gas and electric 1,800
Repairs and maintenance 500
Cable television 350
Phone ($15 per month for a separate phone
number for the office) 420
House cleaning 1,400
Long-distance phone calls (business-related) 670
Kitchen renovations 4,700
Assume that the home is worth $200,000. Marks basis is 140,000, the value of the land
is 20% of basis, and the applicable depreciation percentage is 2.564%. Complete form
8829 using the above information. Marks Social Security number is 136-42-5677.
Forms and instructions can be downloaded from the IRS Web site (www.irs.gov).
Please give me form number form 8829 what goes on what line and how you got it so I can fill out the form correctly.
Also form Schedule C what goes on what line and how you got it so I can understand and fill out the form correctly.
I have been working on this for 2 days and I believe Iam over thinking it and getting very frustrated. I believe if I can get it right then I can learn from that and understand where and why things go where they do correctly.
Thank you in advance Elizabeth
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