Melanie is employed full-time as an accountant for a national hardware chain. She also has recently...

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Melanie is employed full-time as an accountant for a national hardware chain. She also has 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 2021 are as follows: Real property taxes $6,750 8,100 Interest on home mortgage Operating expenses of home 1,688 Melanie's residence cost $442,000 (excluding land) and has living space of 2,000 square feet, of which 24% (480 square feet) is devoted to business. The office was placed in service in February 2020, and under the Regular Method, Melanie had an unused office in the home deduction of $550 for 2020. Assume there is sufficient net income from her consulting practice. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the Simplified Method? Melanie is employed full-time as an accountant for a national hardware chain. She also has 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 2021 are as follows: Real property taxes $6,750 8,100 Interest on home mortgage Operating expenses of home 1,688 Melanie's residence cost $442,000 (excluding land) and has living space of 2,000 square feet, of which 24% (480 square feet) is devoted to business. The office was placed in service in February 2020, and under the Regular Method, Melanie had an unused office in the home deduction of $550 for 2020. Assume there is sufficient net income from her consulting practice. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? b. What is Melanie's office in the home deduction under the Simplified Method?

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a The office in the home expense of 4255 is determined as follows Real property taxes 20 3600 720 In... View the full answer