What amount of home office expenses is mercury allowed

Assignment Help Taxation
Reference no: EM133354161

Question: Mercury is self-employed and she uses a room in her home as her principal place of business. She meets clients there and doesn't use the room for any other purpose. The size of her home office is 400 square feet. The size of her entire home is 2,400 square feet. During the year, Mercury received $6,900 of gross income from her business activities and she reported $3,100 of business expenses unrelated to her home office. For her entire home in the current year, she reported $3,740 of mortgage interest, $1,240 of property taxes, $720 of insurance, $620 of utilities and other operating expenses, and $3,800 of depreciation expense. What amount of home office expenses is Mercury allowed to deduct in 2022? Indicate that amount and the type of expenses she must carry over to the next year, if any.

Reference no: EM133354161

Questions Cloud

Explain how cathy will compute depreciation deductions : Explain how Cathy will compute depreciation deductions on the automobile for Year 1. May Cathy elect to expense part or all of the automobile using §179?
Identify issues in human factors and ethics : Conduct a situational analysis of the provided example to identify issues in human factors and ethics.
Compute corporation non-capital loss for the current year : Compute the corporation's non-capital loss for the current year. JST Limited has computed the following income (loss) for the year ended December 31, 2022
Compute the refundable portion of the corporation : Compute the refundable portion of the corporation's Part I tax for 2022. Jack Corporation Limited, a Canadian-controlled private corporation with a December 31
What amount of home office expenses is mercury allowed : What amount of home office expenses is Mercury allowed to deduct in 2022? Indicate that amount and the type of expenses she must carry over to the next year
Explain in detail the community implant hypothesis : Discuss and elaborate on the barriers to communication between law enforcement and a community. Explain in detail the "Community Implant Hypothesis."
Discuss difference between race and ethnicity : Explain why the distinction made by scholars between race and ethnicity matters when considering efforts to promote inclusivity.
Calculate mohinder minimum taxable benefit related : Calculate Mohinder's minimum taxable benefit related to automobile use. [Must show detailed calculation to get proper credit]
Calculate the amount of anika unused rrsp deduction room : Calculate the amount of Anika's unused RRSP deduction room and un-deducted RRSP contributions at the end of 2021.

Reviews

Write a Review

Taxation Questions & Answers

  Advise allan and bety otf any income tax implications

Advise Allan and Bety otf any income tax implications arising in paras 1, 2 and 3 above. Advise the participants in the barter scheme of any income tax implications.

  List the allowable expenses

A staff tax accountant has come to you for advice. She has begun a tax return and does not know what to do with the expenses that the client has submitted as itemized deductions.

  Calculate the angelos foreign tax offset

HI3042 Taxation Law Question, All of Angelo's foreign income amounts have been converted to Australian dollars. Calculate the Angelos foreign tax offset

  Calculate taxable income and tax payable

Briefly explain making reference to any relevant case law in a half page report in the space provided and calculate her taxable income and tax payable

  Calculate tax payable by the trustee

Calculate the taxable income and the tax assessed on taxable income for Monica and Calculate tax payable by the trustee

  What penalties will they likely face

What penalties will they likely face - What are their defenses (both factual and procedural) and otherwise the return was complete and correct and the tax shown was paid when the return was filed on April 15, 2006.

  What would result if tax return you prepared were audited

What would result if tax return you prepared were audited? What approach would you use to prioritize results of the information you find during your research?

  Prepare federal income tax return including all schedules

Prepare 2017 federal income tax return, including all necessary schedules and attachments, for Donald and Melania Trump using the given information.

  Calculate provisional adjusted income and divisible income

Calculate provisional adjusted income and divisible income for the partnership for YA 2017 - Compute total income for Azmi, Elianna, Isabella and Yasmin for YA

  Ally is getting married and moving to california

Panther Corporation Ally, Bettina and Carly are sisters and each own 100 shares of 300 shares outstanding of Panther Corporation. They have enjoyed running the business together for several years and have been successful. Ally is getting married and ..

  Question the corporate income tax rates in two countries a

question the corporate income tax rates in two countries a and b are 40 and 25 correspondingly. additionally both

  Calculate the assessable - deductible amount

Necktie Pty Ltd (Necktie), an Australian resident company, had the following transactions in the year ended 30 June 2012.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd