Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Textbook Question
Chapter 3, Problem 21P
Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office:
Utilities 500
Real estate taxes 325
Mortgage interest (100 percent deductible) 500
- Assume that Cindy earns income of $4,400 from her business for the year before deducting home office expenses. She has no other expenses associated with the business. Calculate Cindy's deduction for home office expenses.
- Assume that Cindy earns income of $2,600 from her business during the year before deducting home office expenses. Calculate Cindy's deduction for home office expenses.
$__________
$__________
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Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the
following expenses to her office:
Depreciation
$1,500
Utilities
500
Real estate taxes
325
Mortgage interest (100 percent deductible)
500
a. Assume that Cindy earns income of $4,400 from her business for the year before deducting home office expenses. She has no
other expenses associated with the business.
Calculate Cindy's deduction for home office expenses.
b. Assume that Cindy earns income of $2,600 from her business during the year before deducting home office expenses.
Calculate Cindy's deduction for home office expenses.
Chapter 3 Solutions
Income Tax Fundamentals 2020
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