Your client, Nora, has a 300-square-foot room in her2,000-square-foot home that she uses as...

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Accounting

Your client, Nora, has a 300-square-foot room in her2,000-square-foot home that she uses as an office for her bakerybusiness for administrative functions such as paying bills andordering supplies. She has heard of other small businesses takingthe home office deduction, as she does not want to miss out on anydeductions.
Write a short memorandum advising Nora on whether she can takeany deductions for her home office, detailing your conclusion. Youare allowed to make some assumptions in order to document yourfindings.

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home office deduction is available to small businesses for expenses like property taxes repair maintenence insurance loan interest etc there are two methods to calculate allowable home office deduction 1 Simplified method under this method a See Answer

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In: AccountingYour client, Nora, has a 300-square-foot room in her2,000-square-foot home that she uses as an...Your client, Nora, has a 300-square-foot room in her2,000-square-foot home that she uses as an office for her bakerybusiness for administrative functions such as paying bills andordering supplies. She has heard of other small businesses takingthe home office deduction, as she does not want to miss out on anydeductions.Write a short memorandum advising Nora on whether she can takeany deductions for her home office, detailing your conclusion. Youare allowed to make some assumptions in order to document yourfindings.