Nancy is a self-employed artist who uses 10% of her residence as a studio. The studio portion is used exclusively for business and is frequented by customers on a regular basis. Nancy also uses her den as an office (10% of the total floor space of her home to prepare bills and keep records. However, the den is also used by her children as a TV room. Nancy's net income from the sale of the artwork other than her home office expenses) amounts to $40,000 in the current year. She also incurs $1,400 of expenses directly related to the office (e.g., painting of the office, window blinds). Nancy incurs the following expenses in the current year related to her residence: (Click the icon to view the expenses.) Read the requirements. Requirement a. Which of the expenditures (if any) are deductible? Are they for AGI or from AGI deductions? Complete the table below to show the amount and classification of each of expense. (Nancy is electing to use the "actual expenses" rather than the "safe harbor" method. Enter a "0" if an amount is not deductible.) Amount of Type of Data Table Direct home office expenses 1,400 Indirect home office expenses: 2,000 5,000 500 3,500 1,000 12,000 Real estate taxes Mortgage interest Insurance Real estate taxes Mortgage interest Insurance $ 2,000 5,000 500 3,500 1,000 Repairs and utilities Repairs and utilities Total Total indirect home office expenses Total expense for office in home Print Done Nancy is a self-employed artist who uses 10% of her residence as a studio. The studio portion is used exclusively for business and is frequented by customers on a regular basis. Nancy also uses her den as an office (10% of the total floor space of her home to prepare bills and keep records. However, the den is also used by her children as a TV room. Nancy's net income from the sale of the artwork other than her home office expenses) amounts to $40,000 in the current year. She also incurs $1,400 of expenses directly related to the office (e.g., painting of the office, window blinds). Nancy incurs the following expenses in the current year related to her residence: (Click the icon to view the expenses.) Read the requirements. Requirement a. Which of the expenditures (if any) are deductible? Are they for AGI or from AGI deductions? Complete the table below to show the amount and classification of each of expense. (Nancy is electing to use the "actual expenses" rather than the "safe harbor" method. Enter a "0" if an amount is not deductible.) Amount of Type of Data Table Direct home office expenses 1,400 Indirect home office expenses: 2,000 5,000 500 3,500 1,000 12,000 Real estate taxes Mortgage interest Insurance Real estate taxes Mortgage interest Insurance $ 2,000 5,000 500 3,500 1,000 Repairs and utilities Repairs and utilities Total Total indirect home office expenses Total expense for office in home Print Done