Question: please can i get help with this? Steve has a full-time job as an repair technician for the Seattle utility. In his spare time, Steve

Steve has a full-time job as an repair technician for the Seattle utility. In his spare time, Steve repairs computers in the basement of his personal residence. Typically, the computers are dropped off at Steve's house and later picked up by the owner when notified that the repairs have been made. The floor space of Steve's residence is 2,500 square feet, and he estimates that 20% of this is devoted exclusively to the repair business (i.e., 500 square feet). Gross income from the business is $13,000, while business expenses (other than home office) are $5,000. Expenses relating to the residence are as follows: Real property taxes Interest on home mortgage Total expenses of residence (utilities, garbage, etc.) Actual depreciation for the home office only $4,500 8,000 3,000 1,000 What is Steve's net income from the repair business: 1. If he uses the regular (actual expense) method of computing the deduction for his office in the home? 2. If he uses the simplified method for computing his office in the home deduction
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
