Question
Sherry operated a business from her personal residence during the year. She used 20% of the residence exclusively for business purposes. Her net income (before
Sherry operated a business from her personal residence during the year. She used 20% of the residence exclusively for business purposes. Her net income (before taking into account expenses of the home) from her business operation was $3,000. Sherry incurred the following expenses relating to the business portion of her residence:
Interest on residence
$7,000
Taxes on residence
4,000
20% of maintenance, insurance, utilities on residence
600
Allowable depreciation on business portion of residence
1,800
What is Sherry's depreciation deduction with respect to her residence?
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