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Problem - Cindy maintains an office in her home that comprises 8% (200 square feet) of total floor space. Gross income for her business is $42,000, and her residence expenses are as follows:
Real property taxes $2,400
Interest on mortgage 4,000
Operating expenses 2,200
Depreciation (based on 8% business use) 450
Required - What is Cindy's office in the home deduction based on:
a. The Regular Method?
b. The Simplified Method?
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