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?

Question

Quizplus · Accepted Answer

Charles can deduct the home office expenses up to the net income from his business. His net income is $22,000 ($110,000 gross income - $88,000 other expenses). Therefore, the total home office expense deduction is $22,000.

Charles Is a Self- Employed CPA Who Maintains a Qualifying