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Sharon is self-employed and uses a room in her home as her principal place of business. She meets clients there and does not use the
Sharon is self-employed and uses a room in her home as her principal place of business. She meets clients there and does not use the room for any other purpose. The size of her home office is 360 square feet. The size of her entire home is 2,500 square feet. During the year, Sharon received $7,850 of gross income from her business, and she reported $2,400 of business expenses unrelated to her home office. For her entire home in the current year, she reported $3,450 of mortgage interest, $1,290 of property taxes, $1,200 of insurance, $710 of utilities and other operating expenses, and $3,300 of depreciation expense. What amount of home office expenses is Sharon allowed to deduct in the current year using the actual expense method? Also, what amount(s) and type(s) of expenses must she must carry over to next year, if any? Essay Toolbar navigation BIUS = 3
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