Tax Drill-Simplified Method Office in the Home Sabin is an artist and maintains an office (his studio) in his home. His office occuptes 8% (200 square feet) of the total floor space of his residence. Gross income from his business is $24,000. Expenses of the business (other than home office expenses) are $5,000. Sabin incurs the following home office expenses: - Real property taxes on residence: $2,400 - Interest expense on residence: $4,000 - Operating expenses of residence: $2,200 - Depreciation on residence (based on 8% business use) : $450. Assuming Sabin uses the "simplified method" to compute the office in the home deduction, his deduction is