Nicolette is a self-employed consultant who uses 20% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Nicolette also uses her den as an office (5% 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. In 2019, Nicolette's net income from the consulting business (other than her home office expenses) amounts to $90,000. She also incurs $1,300 of expenses directly related to the office (e.g., painting of the office, window blinds). Nicolette incurs the following expenses in 2019 related to her residence: (Click the icon to view the expenses.) Read the requirements. Mortgage interest y 500 1. Yuu TOLAGI Real estate taxes $ 2,900 Mortgage interest 9,500 Insurance 1,200 Depreciation 7,500 2,400 Repairs and utilities $ 23,500 Total Requirement b. Would your answer to Part a change if Nicolette's net income from consulting were only $4,980 for the year? (Nicolette is electing to use the "actual expenses" rather than the "safe harbor" method.) Yes. The answer to Requirement a would change if Nicolette's income were only $4,980 for the year. Under this revised fact pattern Nicolette can deduct the following. List the deductible expenses in the correct order using the rules of Reg. Sec. 1.280A-3. Amount of Deduction 1. Mortgage interest and real estate taxes 2. Other home office expenses 3. Depreciation expense Total expense for office in home Requirement a. Which of the expenditures above (if any) are deductible for 2019? Are they for AGI or from AGI deductions? Complete the table below to show the amount and classification of each of expense in . (Nicolette is electing to use the "actual expenses" rather than the "safe harbor" method. Complete all input fields. Enter a "0" if an amount is not deductible.) Amount of Type of Deduction Deduction Direct home office expenses $ 1,300 1,300 For AGI Indirect home office expenses: Real estate taxes $ 2,900 580 For AGI Mortgage interest 9,500 1,900 For AGI Insurance 1,200 240 For AGI Depreciation 7,500 1,500 For AGI 480 Repairs and utilities 2,400 For AGI Total indirect home office expenses 4,700 $ 6,000 Total expense for office in home Nicolette is a self-employed consultant who uses 20% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Nicolette also uses her den as an office (5% 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. In 2019, Nicolette's net income from the consulting business (other than her home office expenses) amounts to $90,000. She also incurs $1,300 of expenses directly related to the office (e.g., painting of the office, window blinds). Nicolette incurs the following expenses in 2019 related to her residence: (Click the icon to view the expenses.) Read the requirements. Mortgage interest y 500 1. Yuu TOLAGI Real estate taxes $ 2,900 Mortgage interest 9,500 Insurance 1,200 Depreciation 7,500 2,400 Repairs and utilities $ 23,500 Total Requirement b. Would your answer to Part a change if Nicolette's net income from consulting were only $4,980 for the year? (Nicolette is electing to use the "actual expenses" rather than the "safe harbor" method.) Yes. The answer to Requirement a would change if Nicolette's income were only $4,980 for the year. Under this revised fact pattern Nicolette can deduct the following. List the deductible expenses in the correct order using the rules of Reg. Sec. 1.280A-3. Amount of Deduction 1. Mortgage interest and real estate taxes 2. Other home office expenses 3. Depreciation expense Total expense for office in home Requirement a. Which of the expenditures above (if any) are deductible for 2019? Are they for AGI or from AGI deductions? Complete the table below to show the amount and classification of each of expense in . (Nicolette is electing to use the "actual expenses" rather than the "safe harbor" method. Complete all input fields. Enter a "0" if an amount is not deductible.) Amount of Type of Deduction Deduction Direct home office expenses $ 1,300 1,300 For AGI Indirect home office expenses: Real estate taxes $ 2,900 580 For AGI Mortgage interest 9,500 1,900 For AGI Insurance 1,200 240 For AGI Depreciation 7,500 1,500 For AGI 480 Repairs and utilities 2,400 For AGI Total indirect home office expenses 4,700 $ 6,000 Total expense for office in home