Saul is a professional self-employed game tester, and works exclusively out of a 200- square foot...
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Saul is a professional self-employed game tester, and works exclusively out of a 200- square foot office in his home where he meets clients and tests systems. The gross income from his business amounts to $30,000 for the year. Business expenses amount to $21,000. Based on square footage, $6,000 of Saul's mortgage interest and real estate taxes are allocable to the home office. The allocable portion of maintenance, utilities, and depreciation is $6,500. Assuming no other expenses related to the business were incurred, what amount of the maintenance, utilities, and depreciation is deductible by Saul? Saul is a professional self-employed game tester, and works exclusively out of a 200- square foot office in his home where he meets clients and tests systems. The gross income from his business amounts to $30,000 for the year. Business expenses amount to $21,000. Based on square footage, $6,000 of Saul's mortgage interest and real estate taxes are allocable to the home office. The allocable portion of maintenance, utilities, and depreciation is $6,500. Assuming no other expenses related to the business were incurred, what amount of the maintenance, utilities, and depreciation is deductible by Saul?
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To calculate the deductible amount of maintenance utilities and depreciation for Sauls home office w... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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