Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $3,600 3,800 900 Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2018. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. Round deprecation to the nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? 3,455 X
Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $3,600 3,800 900 Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2018. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. Round deprecation to the nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? 3,455 X
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which
provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to
her home for 2019 are as follows:
Real property taxes
Interest on home mortgage
Operating expenses of home
$3,600
3,800
900
Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to
business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home
deduction of $800 for 2018. Assume there is sufficient net income from her consulting practice.
Click here to access the depreciation table. Round deprecation to the nearest dollar.
a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method?
$
3,455 X
b. What is Melanie's office in the home deduction under the Simplified Method?
1,500
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT