What percent of Camille's business income is basic federal income tax?
Camille operates a child care service from her home. Her gross business income for 2015 amounted to $42 350. Her tax-deductible business expenses consisted of the following:
Advertising..................................................$1700
Dues, memberships, subscriptions...........................520
Motor vehicle expenses.....................................1115
Supplies.........................................................582
Meals and entertainment.....................................495
Other expenses................................................437
Camille can also deduct home expenses, such as utilities, property taxes, house insurance, mortgage interest, and maintenance for the business use of a workspace in her home. The amount that may be deducted is a proportion of the total annual home expenses allocated to the workspace on a reasonable basis, such as area or number of rooms. Camille's eligible home expenses for the year were:
Heat..................................................$3750
Power.................................................2480
Water...................................................610
House insurance.....................................1420
Maintenance..........................................1930
Mortgage interest....................................6630
Property taxes.......................................3260
Other expenses.......................................690
The house covers 345 square metres and consists of eight rooms. Camille uses one room with an area of 45 square metres as her business office.