Charles Is a Self- Employed CPA Who Maintains a Qualifying

question 1141

Multiple Choice

Charles is a self- employed CPA who maintains a qualifying office in his home. Charles has $110,000 gross income from his practice and incurs $88,000 in salaries, supplies, computer services, etc. Charles's mortgage interest and real estate taxes allocable to the office total $10,000. Other expenses total $14,000 and consist of depreciation, utilities, insurance, and maintenance. What is Charles' total home office expense deduction?

• A) $24,000
• B) $14,000
• C) $22,000
• D) $10,000

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Definitions:

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, beneficial for maintaining or improving health and fitness.

Dietary Modifications

Changes made to one’s diet in order to improve health, manage allergies, or accommodate medical conditions.

Vitamin Supplements

Products taken orally that contain one or more vitamins or other nutrients intended to supplement one's diet.

Nitrogen Balance

A measure of the balance between nitrogen intake and nitrogen excretion, indicative of the body's anabolic or catabolic state.