8-26 Home Office Computations. T is self-employed and tutors students at State University. Outside of...
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8-26 Home Office Computations. T is self-employed and tutors students at State University. Outside of her university work she occasionally provides some ac- counting services. T does all her work for these outside pursuits in her home office. Income and expenses relating to these were: $2,000 400 500 Income: Fees for services .......... Expenses: Depreciation on home office furniture and computer ......... Miscellaneous supplies, books, etc........ Expenses attributable to home office: Depreciation........ Insurance and utilities. ............... Taxes ................................................. Interest............................................ 500 ILIO I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 300 700 a. Using the general method, determine the tax consequences resulting from T's part-time activities. b. Using the optional simplified method, determine the tax consequences result- ing from T's part-time activities. Assume that the square footage used for the home office is 120 square feet
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