Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ******* scenario 2: home office deduction &

******* Scenario 2: Home Office Deduction & Business Use of Home ...

90.2K

Verified Solution

Question

Accounting

*******
Scenario 2: Home Office Deduction & Business Use of Home
Sole Proprietorship Business Income: $80,000
Qualifies for the home office deduction. Home office is 400 sq. ft in a 2,000 sq. ft house.
Eligible home-related expenses:
Mortgage Interest: $8,000
Property Taxes: $5,200
Utilities: $3,000
Homeowner's insurance: $1,500
Depreciation on the home: $4,000
Interest Income: $800
Itemized Deductions (includes non-home-office portion of above expenses): $25,000
Allowable deduction for self-employment tax: $6,500
Calculate:
The home office deduction.
AGI, Taxable Income, and Total Tax Liability

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

Chemistry
1.2K views

1) You are a research scientist studying a novel enzyme X, and you want to characterize...

Psychology
1.2K views

There is much debate as to whether leaders are made or born. Post a well-considered and...

Biology
1.2K views

Which sentence best describes how a species might become extinct A Environmental changes favor certain...

Biology
1.2K views

The humerus is the OA smaller of the two bones in the lower leg B...

Physics
1.2K views

Two 99 sq cm plates which are both 2.21 mm thick are soldered together. Plate...

Physics
1.2K views

An aluminum rod is 17.4 cm long at 20C and has a mass of 350...

Geometry
1.2K views

H D M A MA M A 5 B MA lies on M A 3...

Calculus
1.2K views

Graph the following function Drag the movable red point to set the asymptotes for one...

Algebra
1.2K views

which side length is closedt to the value of HJ Please show all work 27...

Accounting
1.2K views

On October 31, 2021, X Company paid $36,000 cash for insurance services to be received...

Accounting
1.2K views

Almeda Products, Inc. uses a job-order costing system. The company's inventory balances on April 1,...

Accounting
1.2K views

Austin Sound sold inventory for $300,000, terms 2 ri 0,n30. Cost of goods sold was...