Charles 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 salaries,supplies,computer services,etc.Charles's mortgage interest and real estate taxes allocable to the office total $10,000.Other expenses total $14,000 and consist of depreciation,utilities,insurance,and maintenance.What is Charles' total home office expense deduction?
A)$10,000
B)$14,000
C)$22,000
D)$24,000

Question

Quizplus · Accepted Answer

Charles can deduct the $10,000 of mortgage interest and real estate taxes plus the $14,000 of other expenses, totaling $24,000. However, the deduction is limited to the net income from the business, which is $22,000 ($110,000 - $88,000). Therefore, the total home office expense deduction is $22,000.

Charles Is a Self-Employed CPA Who Maintains a Qualifying Office