Reference no: EM132486228
Question - Cindy, who is self-employed, maintains an office in her home that comprises 26% (400 square feet) of total floor space. Gross income for her business is $47,150, and her residence expenses are as follows:
Real property taxes $5,436
Interest on mortgage $9,060
Operating expenses $4,530
Depreciation (based on 26% business use) $2,195
If required, round your final answer to the nearest dollar.
Required -
a. What is Cindy's office in the home deduction based on the regular method?
b. What is Cindy's office in the home deduction based on the simplified method?