Question: Snoopy has a full - time job as an electrical engineer for the city of Peanuts. In his spare time, Snoopy repairs electronic gear in
Snoopy has a fulltime job as an electrical engineer for the city of Peanuts. In his spare time, Snoopy repairs electronic gear in the basement of his personal residence. Most of his business comes from friends and referrals from former customers, although occasionally he runs an ad in the Peanuts newspaper. Typically, the items are dropped off at Snoopys house and later picked up by the owner when notified that the repairs have been made.
The floor space of Snoopys residence is square feet, and he estimates that of this is devoted exclusively to the repair business square feet Gross income from the business is $ while business expenses other than home office are $ Expenses relating to the residence are as follows:
Real property taxes
$
Interest on home mortgage
Operating expenses of residence
Depreciation based on business use
a What is Snoopys net income from the repair business the amount that would be reported on his Schedule C line if he uses the regular method of computing the deduction for office in the home?
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