Amanda is a self-employed newspaper columnist who does her work exclusively from a home office. Amanda had a bad year and her taxable income from her business is only $2,000 before the home office expenses this year. Her office takes up 300 square feet of her 1,200 square feet apartment. The total expenses for her apartment are $8,000 for rent, $1,000 for utilities, $200 of renter’s insurance, and $800 for pest control and other maintenance. What is Amanda’s home office deduction? Please show your calculations.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 4CE
icon
Related questions
Question

Amanda is a self-employed newspaper columnist who does her work exclusively from a home office. Amanda had a bad year and her taxable income from her business is only $2,000 before the home office expenses this year. Her office takes up 300 square feet of her 1,200 square feet apartment. The total expenses for her apartment are $8,000 for rent, $1,000 for utilities, $200 of renter’s insurance, and $800 for pest control and other maintenance. What is Amanda’s home office deduction? Please show your calculations.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Tax consequences of home ownership
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
Accounting
ISBN:
9780357391129
Author:
WHITTENBURG
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT