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Required information [The following information applies to the questions displayed below.) Brooke owns a sole proprietorship in which she works as a management consultant.
Required information [The following information applies to the questions displayed below.) Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work related tasks. The home office is 300 square feet. and the entire house is 4,500 square feet. Brooke incurred the following home related expenses during the year. Brooke itemizes her deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Unless indicated otherwise, assume Brooke uses the actual expense method to compute home office expenses. Real property taxes Interest on home mortgage Operating expenses of home: Depreciation Repairs to home theater room $ 3,600 14,000 5,000 12,000 1,000 Required: a. What amount of each of these expenses is allocated to the home office? b. What are the total amounts of tier 1, tier 2, and tier 3 expenses, respectively, allocated to the home office? c. If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction, and what home office expenses, if any, would she carry over to next year? e. Assume that Brooke uses the simplified method for computing home office expenses. If Brooke reported $2.000 of Schedule C net income before the home office expense deduction. what is the amount of her home office expense deduction, and what home Complete this question by entering your answers in the tabs below. es Required A Required B Required C Required E What amount of each of these expenses is allocated to the home office? Note: Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations. Round your fina the nearest whole dollar amount. Expense Real property taxes Interest on home mortgage Operating expenses of home Depreciation Repairs to home theater room Total expenses Allocated to home office 0 over to next e. Assume that Brooke uses the simplified method for computing home office expenses. If Brook net income before the home office expense deduction, what is the amount of her home office ex office expenses, if any, would she carry over to next year? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required E What are the total amounts of tier 1, tier 2, and tier 3 expenses, respectively, allocated to the home o Note: Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations. Round the nearest whole dollar amount. Expenses Tier 1 expenses Tier 2 expenses Tier 3 expenses Amount Complete this question by entering your answers in the tabs below. Required Al Required B Required C Required E Required E If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction, and what home office expenses, if any, would she carry over to next year? Note: Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Home office expense deduction Home office expense carried over Show less A e. Assume that Brooke uses the simplified method for computing home office expenses. If Brooke reported $2,000 of Schedule net income before the home office expense deduction, what is the amount of her home office expense deduction, and what ha office expenses, if any, would she carry over to next year? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required E Assume that Brooke uses the simplified method for computing home office expenses. If Brooke reported $2,000 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction, and what home office expenses, if any, would she carry over to next year? Note: Leave no answer blank. Enter zero if applicable. Home office expenses deduction Home office expenses carried forward Show less A
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