What amount of home office expenses is mercury allowed

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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

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