Question

Question 28 of 75. Maxine lives in a 700-square-foot studio apartment. She runs her own catering business and cooks client meals in her kitchen. Maxine figures the kitchen is approximately 350 square feet. She also cooks her personal meals in the kitchen. What percentage of her rent may Maxine deduct as business-use-of-home expense? O 0% O 25% 50% O 100% Mark for follow up

Answer 1

Answer is 25%

Total deduction for home office deduction = Area for home business ofkitchen (sq foot)/ total area of home (sq foot)

350 sq foot/ 700 sq foot =50%

But since some of that 350 sq foot is also used for making personal meals in kitchen so 50% can not be the case so the answer is 25% since 0% also cant be the case because some area of the kitchen is used for business as well. Now it is not clearly stated in the question how much time of kitchen is used for business use and how much is for personal use so we are assuming equal so the answer is 50%/2 = 25%