Problem regarding the cost of home office

Assignment Help Project Management

Reference no: EM13991506

Mark Pari is a self-employed electrician who exclusively uses a room in his home to perform the administrative functions related to his business. The room is 250 square feet of the 2,500 total square feet of his home. Mark's income from his business before considering the cost of his home office is $62,890. He incurs the following expenses related to his home:

Mortgage interest	$10,000
Property taxes	1,500
Insurance	600
Gas and electric	1,800
Repairs and maintenance	500
Cable television	350
Phone ($15 per month for a separate phone number for the office)	420
House cleaning	1,400
Long-distance phone calls (business-related)	670
Kitchen renovations	4,700

Assume that the home is worth $200,000. Mark's basis is 140,000, the value of the land is 20% of basis, and the applicable depreciation percentage is 2.564%. Complete form 8829 using the above information. Mark's Social Security number is 136-42- 5677. Forms and instructions can be downloaded from the IRS Web site (www.irs.gov/formspubs/index.html).

Reference no: EM13991506

Questions Cloud

Categories of medical staff in a community hospital setting : Healthcare administrators need a solid understanding of physicians and their medical staff activities. Explain the typical categories of medical staff in a community hospital setting.

Estimate profit for a hypothetical company : Prepare a cash budget and to estimate profit for a hypothetical company using the information and data provided on the Moodle sit

Find the change in thermal energy of the system : Find the change in gravitational potential energy. Since the final goal of this problem is to find the minimum spring constant, assume that the spring will compress to its maximum value.

Interest on business-related loans : The renovation loan was for $60,000. Because she spent only $45,000 renovating the new building and painting and landscaping the old one, she used the additional $15,000 to purchase city of Seattle bonds with a yield of 6%.

Problem regarding the cost of home office : Mark's income from his business before considering the cost of his home office is $62,890. He incurs the following expenses related to his home:

What is the shortest length of highway : A highway is to be built between two towns, one of which lies 36.2 km south and 79.6 km west of the other. What is the shortest length of highway that can be built between the two towns.

What is the beat frequency of the wave generated : A highway patrol officer is targeting a car that is receding from her at 65m/s. the officer herself is parked. her radar gun sends out a radar wave at 34.6 GHz (1.0 GHz = 1.0x10^9 Hz). use Vsound= c = 3.0 x 10^8 m/s. what is the frequency of the ra..

What are the pros and cons of the matrix organization : When someone is reporting to two people how can there be a fast reaction time? Also, what are the pros and cons of the matrix organization when it comes to project management?

Effect of method on their taxable income : Find authority for a different method for deducting mortgage interest and property taxes on Calvin and Lorna's rental property, and calculate the effect of that method on their taxable income.

User Account

All Pages