What is Melanie office in the home deduction

Assignment Help Accounting Basics
Reference no: EM132658025

Problem - Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows:

Real property taxes $3,600

Interest on home mortgage 3,800

Operating expenses of home 900

Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2018. Presuming sufficient net income from her consulting practice, what is Melanie's office in the home deduction under the:

a. Regular Method.

b. Simplified Method.

Reference no: EM132658025

Questions Cloud

What are the income tax consequences : Christine is full-time teacher of the fourth grade at Vireo Academy. What are the income tax consequences of the $1,400 if Christine chooses standard deduction
Medieval and baroque periods : During the Medieval and Baroque periods there were many changes in instruments and audiences. Discuss at least two changes from Medieval and the Baroque.
How your work completed in the course may assist you : For this Discussion, select a health care administration leadership issue that interests you as a possible research topic for a dissertation.
Discuss method of setting premium rates in insurance company : Discuss methods of setting premium rates in insurance companies (Manual rating, merit rating, judgement rating). Identify any two insurance companies in Kingdom
What is Melanie office in the home deduction : Presuming sufficient net income from her consulting practice, what is Melanie's office in the home deduction under the Regular Method
Find what would do and how would document decision : You have noticed that the A/R clerk has created an abnormally high number of credit memos. What would you do, and how would you document your decision?
Examine alexa skill in ordering drinks from starbucks : Examine Alexa's skill in ordering drinks from Starbucks. discuss how using VirtualBox and the Linux LAMP server represents cloud computing.
What can investors learn from interpreting results of ratio : What can investors learn from interpreting the results of this ratio? Describe the information that is included in the stock trading reports for that stock
How much may Stork deduct for this event : The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd