Question
Saul is a professional self-employed game tester, and works exclusively out of a 200- square foot office in his home where he meets clients
Saul is a professional self-employed game tester, and works exclusively out of a 200- square foot office in his home where he meets clients and tests systems. The gross income from his business amounts to $30,000 for the year. Business expenses amount to $21,000. Based on square footage, $6,000 of Saul's mortgage interest and real estate taxes are allocable to the home office. The allocable portion of maintenance, utilities, and depreciation is $6,500. Assuming no other expenses related to the business were incurred, what amount of the maintenance, utilities, and depreciation is deductible by Saul?
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