Determine the maximum deduction that would be available

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Reference no: EM132821762

During the current year, Ms. Janice has the following costs:

Utility Costs For Home $3,200

Maintenance And Repairs For Home 3,800

Property Taxes For Home 6,400

House Insurance 1,800

Interest On Mortgage 6,200

Ms. Janice estimates that she uses 30 percent of her residence for employment/business related purposes. Maximum CCA (capital cost allowance) on 100 percent of the house would be $15,000 (i.e., treat house CCA as an eligible expense for Ms. Janice self-employed case).

Required:

Problem 1: Determine the maximum deduction that would be available to Ms. Sheridan assuming:

A. She is an employee with $80,000 in income (no commissions).

B. She is an employee with $80,000 in commission income.

C. She is self-employed (proprietor) and earns $80,000 in business income.

Reference no: EM132821762

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