Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2023 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $5,000 6,000 1,250 Melanie's residence cost $449,500 (excluding land) and has living space of 2,000 square feet, of which 35% (700 square feet) is devoted to business. The office was placed in service in February 2022, and under the Regular Method, Melanie had an unused office in the home deduction of $425 for 2022. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. to use for this problem. Round your final answer to nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the Simplified Method?

Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2023 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $5,000 6,000 1,250 Melanie's residence cost $449,500 (excluding land) and has living space of 2,000 square feet, of which 35% (700 square feet) is devoted to business. The office was placed in service in February 2022, and under the Regular Method, Melanie had an unused office in the home deduction of $425 for 2022. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. to use for this problem. Round your final answer to nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the Simplified Method?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 35P

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Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2023 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $5,250 6,300 1,313 Melanie's residence cost $382,000 (excluding land) and has living space of 2,000 square feet, of which 22% (440 square feet) is devoted to business. The office was placed in service in February 2022, and under the Regular Method, Melanie had an unused office in the home deduction of $1,025 for 2022. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. to use for this problem. Round your final answer to nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method?…
Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2020 are as follows: Real property taxes $5,000 Interest on home mortgage 6,000 Operating expenses of home 1,250 Melanie's residence cost $412,000 (excluding land) and has living space of 2,000 square feet, of which 28% (560 square feet) is devoted to business. The office was placed in service in February 2019, and under the Regular Method, Melanie had an unused office in the home deduction of $500 for 2019. Assume there is sufficient net income from her consulting practice. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method?$ b. What is Melanie's office in the home deduction under the Simplified Method?$
Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2020 are as follows: Real property taxes $3,600 Interest on home mortgage 3,800 Operating expenses of home 900 Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The office was placed in service in February 2019, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2019. Assume there is sufficient net income from her consulting practice. Round deprecation to the nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the…
Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2020 are as follows: Real property taxes $4,750 Interest on home mortgage 5,700 Operating expenses of home 1,188 Melanie's residence cost $415,000 (excluding land) and has living space of 2,000 square feet, of which 29% (580 square feet) is devoted to business. The office was placed in service in February 2019, and under the Regular Method, Melanie had an unused office in the home deduction of $1,600 for 2019. Assume there is sufficient net income from her consulting practice. What amount can Melanie claim this year for her office in the home deduction under the Regular Method?