Office at home deduction Regular Method the simplified method (safe harbor) Problem (chp 9) Ana, CPA, employed by a midsize CPA firm as a Tax Manager. She operates a gears business that she operates ou t of her home. For the business, she uses two rooms in the basement of the house exclusively and regularly, the space of the two rooms is 250 sq ft which is 10% of the total floor space of her home 2,500 sq ft Gross income from the business is total of $10k. expenses of the business (other than home expenses) are $8,500 Ana incurs the following home office expenses Real Prop tax on residente Int Exp on residence Operating exp of residence MACRS cost recovery on residence 350 $4k $2k Determine Ana's deductions for business ? Does she has any carry over? Are these deductions from or for AGI? What will be her results if she uses the simplified method? is there any additional items that can be deduction some place else? DOLL F4 F6 F7 F8 F9 F10 F11 6 8 9