Question: Exercise 9-19 (Algorithmic) (LO. 5) Jayda, who is self-employed, maintains an office in her home that comprises 24% (290 square feet) of total floor space.

Exercise 9-19 (Algorithmic) (LO. 5) Jayda, who is self-employed, maintains an office in her home that comprises 24% (290 square feet) of total floor space. Gross income for her business is $47,900, and her residence expenses are as follows: Real property taxes $5,052 Interest on mortgage 8,420 4,210 Operating expenses Depreciation (based on 24% business use) 6,635 If required, round your final answer to the nearest dollar. a. What is Jayda's office in the home deduction based on the regular method? 10,877.8 x Feedback Check My Work Self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the residence is used exclusively on a regular basis under certain circumstances. b. What is Jayda's office in the home deduction based on the simplified method? 1,500
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
