Using 2019 IRS forms and the information below, William is 53 and Joyce is 51. They are married. William is a manager for ABC Corporation, a firm that manufactures and distributes widgets. Joyce is a self-employed author of childrens books. The taxpayer wish to minimize their tax by deferring income and accelerating deductions when possible.

At the beginning of the year Joyce set aside a separate room of the house which she uses exclusively for business. The room is 100 square feet of the total 5,000 square feet of the house. The taxpayers purchased the home several years ago for $70,000 with approximately 20 percent of the purchase price attributable to the land. The total household expenses for the year are as follows: Heat $2,000 Insurance $1,000 Electricity $1,600 Repairs to kitchen $3,000 Cleaning $1,000