Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She als...
Problem 9-34 (Algorithmic) (LO. 5)
Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows:
|
Melanie's residence cost $442,000 (excluding land) and has living space of 2,000 square feet, of which 19% (380 square feet) is devoted to business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home deduction of $1,825 for 2018. Assume there is sufficient net income from her consulting practice.
Click here to access the depreciation table to use for this problem. Round your final answer to nearest dollar.
a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method?
b. What is Melanie's office in the home deduction under the Simplified Method?
Homework Answers
Add Answer to:
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She als...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes $7,000 Interest on home mortgage 8,400 Operating expenses of home 1,750 Melanie's residence cost $422,500 (excluding land) and has living...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes $7,000 8,400 Interest on home mortgage Operating expenses of home 1,750 Melanie's residence cost $422,500 (excluding land) and has living...
will thumbs up, thanks. Sally has a full-time job as an accountant with a large corporation....
will thumbs up, thanks.
Sally has a full-time job as an accountant with a large corporation. In her spare time, she prepares tax returns in a spare room of her home. Most of her business comes from friends and referrals from former clients. Typically, clients drop of their materials at Sally's house and return sometime later to review and sign the returns. The floor space of Sally's residence is 2,000 square feet and her dedicated work space is 300 square...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other wo...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,960. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes $ 1,780 Interest on home mortgage 5,370 Operating expenses of home...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,680. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes $ 1,640 Interest on home mortgage 5,160 Operating expenses of home...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,000. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes Interest on home mortgage Operating expenses of home Depreciation $1,800 5,400...
Nicolette is a self-employed consultant who uses 15% of her residence as an office. The office...
Nicolette is a self-employed consultant who uses 15% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Nicolette also uses her den as an office (7% of the total floor space of her home) to prepare bills and keep records. However, the den is also used by her children as a TV room. In 2019, Nicolette's net income from the consulting business (other than her home office...
Tax Return Project
Note: This problem is for the 2019 tax year.David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics.David earned consulting fees of $145,000 in 2019. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In...
Janice Morgan, age 24, is single and has no dependents. She is a
freelance writer. In January 2018, Janice opened her own office
located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called
her business Writers Anonymous. Janice is a cash basis taxpayer.
She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social
Security number is 123-45-6789. Janice’s parents continue to
provide health insurance for her under their policy. Janice wants
to contribute to the Presidential Election...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes $7,000 Interest on home mortgage 8,400 Operating expenses of home 1,750 Melanie's residence cost $422,500 (excluding land) and has living...
Problem 9-34 (Algorithmic) (LO. 5) Melanie is employed full-time as an accountant for a national hardware chain. She also has recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes $7,000 8,400 Interest on home mortgage Operating expenses of home 1,750 Melanie's residence cost $422,500 (excluding land) and has living...
will thumbs up, thanks.
Sally has a full-time job as an accountant with a large corporation. In her spare time, she prepares tax returns in a spare room of her home. Most of her business comes from friends and referrals from former clients. Typically, clients drop of their materials at Sally's house and return sometime later to review and sign the returns. The floor space of Sally's residence is 2,000 square feet and her dedicated work space is 300 square...
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,000. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes Interest on home mortgage Operating expenses of home Depreciation $1,800 5,400...
Nicolette is a self-employed consultant who uses 15% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Nicolette also uses her den as an office (7% of the total floor space of her home) to prepare bills and keep records. However, the den is also used by her children as a TV room. In 2019, Nicolette's net income from the consulting business (other than her home office...
Janice Morgan, age 24, is single and has no dependents. She is a
freelance writer. In January 2018, Janice opened her own office
located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called
her business Writers Anonymous. Janice is a cash basis taxpayer.
She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social
Security number is 123-45-6789. Janice’s parents continue to
provide health insurance for her under their policy. Janice wants
to contribute to the Presidential Election...
Most questions answered within 3 hours.
-
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 21 minutes ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 1 hour ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 1 hour ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 2 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 2 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 2 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 2 hours ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 3 hours ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 3 hours ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 3 hours ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 3 hours ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 3 hours ago