Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses:

Real property taxes on residence: $2,400

Interest expense on residence: $4,000

Operating expenses of residence: $3,200

Depreciation on residence (based on 8% business use): $450.

His office occupies 420 sq ft (10%) of floor space in his residence. Gross income from his business is $34,000.

Assuming that Steven uses the simplified method, what is his allowable office in the home deduction?