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Question - John maintains an office in home that comprises 9% (400 square feet) of total floor space. Gross income for his business is $58,000 and his expenses are as follows:
Real estate taxes - $4,500
Mortgage interest - $7,900
Operating expenses - $5,200
Depreciation - $1,200
Required - What is his office in home deduction based on the regular and simplified method? Also, in at least a 1 page paper that is in APA format, what is the regular and simplied method? What are some of the differences between each of these methods and when would you know which one to use?
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mike a real estate broker in california recently inherited a farm from his deceased uncle and plans to sell the farm to
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