Subject: Work Space In The Home Costs

During the current year, Jobul Krist has the following costs:

Utilities $ 2,400

Maintenance And Repairs 4,600

Property Taxes 5,200

House Insurance 2,300

Interest On Mortgage 7,800

Repainting And Rewiring The Work Space In The Home 1,000

Home Internet Service Fees 960

Home Telephone:

Monthly Charge 600

Employment/Business Related Long Distance Charges 390

Mr. Krist is a workaholic with no family, friends, pets, or personal interests. He estimates that he uses 25 percent of his residence and 95 percent of his home phone and home internet service for employment/business related purposes. Maximum CCA on 100 percent of the house would be $12,000. Determine the maximum deduction that would be available to Mr. Krist assuming:

A. He is an employee with $250,000 in income (no commissions).

B. He is an employee with $250,000 in commission income.

C. He is self-employed and earns $250,000 in business income.