Question
Please help, I've been stuck on this problem for 45 minutes now: Cindy operates a computerized engineering drawing business from her home. Cindy maintains a
Please help, I've been stuck on this problem for 45 minutes now:
Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office: a. Assume that Cindy earns income of $2,400 from her business for the year before deducting home office expenses. She has no other expenses associated with the business. Calculate Cindy's deduction for home office expenses.b. Assume that Cindy earns income of $2,600 from her business during the year before deducting home office expenses. Calculate Cindy's deduction for home office expenses.
Depreciation | $1,500 |
Utilities | 500 |
Real estate taxes | 325 |
Mortgage interest (100 percent deductible) | 500 |
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