Laura is a CPA employed by a regional firm a tax manager. In her spare time,...
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Laura is a CPA employed by a regional firm a tax manager. In her spare time, she operates a custom drapery business out of her home. For this business, she uses two rooms in her home exclusively and regularly. The floor space of these rooms is 450 square feet; her residence has a total of 3,000 square feet. Gross income from the business totals $18,000. Operating expenses of the business (other than home office expenses) are $4,500. Laura incurs the following home office expenses - Repainting and repairs to her office space • Real property taxes on residence • Mortgage interest expense on residence • Utilities and other expenses for the residence • Depreciation (adjusted based on the business use %) $ 700 5,000 3,500 3,700 500 What is Laura's net income from this business after the allowance for the deduction for her office in the home? Laura is a CPA employed by a regional firm a tax manager. In her spare time, she operates a custom drapery business out of her home. For this business, she uses two rooms in her home exclusively and regularly. The floor space of these rooms is 450 square feet; her residence has a total of 3,000 square feet. Gross income from the business totals $18,000. Operating expenses of the business (other than home office expenses) are $4,500. Laura incurs the following home office expenses - Repainting and repairs to her office space • Real property taxes on residence • Mortgage interest expense on residence • Utilities and other expenses for the residence • Depreciation (adjusted based on the business use %) $ 700 5,000 3,500 3,700 500 What is Laura's net income from this business after the allowance for the deduction for her office in the home?
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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