What is cindy office in the home deduction

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Question - Cindy maintains an office in her home that comprises 5% (200 square feet) of the total floor space. Gross income for her business is $42,000 and her residence expenses are as follows:

Depreciation (based on 5% business use) $450

Interest on mortgage 4,000

Operating expenses 2,200

Real property taxes 2,400

Required -

Part 1 - What is Cindy's office in the home deduction based on the Regular Method?

Part 2 - What is Cindy's office in the home deduction based on the Simplied Method?

Part 3 - Which method should Cindy choose?

Reference no: EM133094572

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