Suppose that christine also spent 3000 to repaint and

Reference no: EM13599535

Christine is employed full-time as an accountant for a national hardware chain. She also has 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 are as follows:

Real property taxes $3900
Interest on home mortgage $4000
Operating expenses of home $1100
Depreciation allocated to 20% business use $1600
Christine's income from consulting is $16000, and the related expenses are $5000.

a. What is Christine's office in the home deduction?

b. Suppose that Christine also spent $3000 to repaint and replace the carpet in the office. How do these additional costs change the answer to part (a)?

c. Suppose that Christine's income from consulting is only $8000 (not $16000). How does this change the answer to part (a)?

Reference no: EM13599535

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