Jonathan Is a Self-Employed Consultant with a Qualifying Office in His

question 1

Multiple Choice

Jonathan is a self-employed consultant with a qualifying office in his home.The gross income from his business is $18,000 and he has $14,000 of business expenses other than those for his home office.His home office occupies 20% of the square footage of his home and the total expenses for his home include: $12,000 for mortgage interest, $4,000 for property taxes, $3,600 for utilities, and $1,500 for homeowner's insurance.Depreciation for the business portion of his home is $500.How much can Jonathan deduct for his home office expenses?

• A)$0
• B)$4,000
• C)$4,220
• D)$4,720

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Definitions:

Business

The practice of making one's living by engaging in commerce, including the operation of companies and the buying and selling of goods and services.

Ethical Activities

Involves actions and practices that follow moral principles and standards in a professional context.

Identify

The act of recognizing or establishing the nature or characteristics of something.

Organization

A structured group of individuals working together to achieve collective goals through coordinated activities.