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Luis is a self-employed CPA who maintains a qualifying office in his home. Charles has $110,000...

Luis 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 business expenses not related to the home office. Luis mortgage interest and real estate taxes allocable to the office total $10,000. Other expenses allocoable to the home office total $11,000 and consist of utilities, insurance, and maintenance, and $3,000 for depreciation. What is Luis total home office expense deduction ( using actual expenses)?

a.$24,000

b.$22,000

c.$14,000

d.$10,000

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Answer #1

Givan that 4uo,000 has Zais income othea eleatl Salonies and anpans as isf88,000 Real estates alloeat to te office is 0,000 o

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