Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. nick has a place of work but often chooses to work

Nick has a place of work but often chooses to work from home at night...

90.2K

Verified Solution

Question

Accounting

Nick has a place of work but often chooses to work from home at night to ensure his business finances are kept up-to-date. Nick determines his home office occupies 5% of the house.

His expenses incurred during the year in relation to the house are as follows:

  • Electricity totalling $1,200
  • Mortgage repayments $25,000 (interest is $15,000 and the remaining capital)
  • Rates and taxes totalling $3,750
  • Water expenses totalling $500

Based on the above facts and relevant tax laws, what amount can Nick claim as an allowable deduction regarding the home office? (select the best answer)

A $1,023
B $60
C $0 he has a place of work
D $273

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Epigenetics centres on inheritable phenotype changes that do not involve alterations in the DNA sequence, indicating...

Electrical Engineering
1.2K views

Does \"current travels the path of least resistance\" only apply in a single loop (when there...

Finance
1.2K views

OPTIMAL CAPITAL BUDGET Hampton Manufacturing estimates that its WACC is 12.5%. The company is considering the following...

Biology
1.2K views

9 The process of choosing parent organisms for desired characteristics is called O Artificial selection...

Physics
1.2K views

Even number of infinite concentric circular arcs of same angular span 0 carry uniform linear...

Geometry
1.2K views

7 Throughout this question leave all answers as exact expressions in terms of it and...

Geometry
1.2K views

domain range f 1 5 Use the graph to find the indicated function values a...

Calculus
1.2K views

An object moves on a trajectory given by r t 10 cos 4t 10 sin...

Calculus
1.2K views

b It is given that g x is a periodic function with period 1 i...

Accounting
1.2K views

Please answer all three for a thumbs up please ...

Accounting
1.2K views

please help fill the table Lindon Company is the exclusive distributor for...

Finance
1.2K views

Your landscaping company can lease a truck for $8,000 a year (Paid at year end)...