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16 November, 23:35

Candace uses an office in her home exclusively for her business. The business use of the home is 100 square feet out of 2,000 square feet for the entire home. The total expenses to allocate are $3,000. Candace wishes to maximize her deduction in the current year. What is the amount of her home office deduction before any income limitations?

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  1. 17 November, 00:25
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    business use of home = 100 sq ft

    total sq ft of home = 2000 sq ft

    in percent terms, business use of home = (100 / 1200) x 100

    = 8.33%

    total expenses to allocate are $3,000

    expense to be allocated to business use

    = 3000 x 8.33%

    = 250

    deduction allowable = 250
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