Rebecca Has a Qualifying Home Office $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 97

Multiple Choice

Rebecca has a qualifying home office. The room is 600 square feet and the entire house is 3,000 square feet. Use the following information to determine her allowable home office deduction:
Revenue from legal practice $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $160,500
Expenses from legal practice $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 157,000
Expenses from home $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ (100%)
Home mortgage interest $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 10,000
Property taxes $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 3,300
Homeowner's insurance $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2,000
Utilities $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 1,200
Cost to convert patio into a sunroom $\quad$$\quad$$\quad$$\quad$ 5,000
Depreciation on office portion of home $\quad$$\quad$$\quad$ 800

• A) $3,300 home office deduction.
• B) $16,500 home office deduction.
• C) $3,500 home office deduction.
• D) $4,100 home office deduction.

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Definitions:

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