Tax ACCT CH 15

Nancy is a self-employed wedding planner. She lives in a 1,600 square foot house, which includes a 200 square foot office that she uses exclusively for her business. She often meets with clients and vendors in her home office. The net income from her business, excluding home office expense, is $60,000. Nancy has direct home office expenses of $2,000 and indirect expenses of the household of $28,000. What amount can Nancy deduct as a home office deduction?

Question 3 options:

	$2,000
	$3,750
	$5,500
	$30,000