Aaron James Has a Qualifying Home Office A) $5,240
B) $4,140
C) $4,260
D) $21,800

Aaron James has a qualifying home office. The office is 500 square feet and the entire house is 2,500 square feet. Use the following information to determine his allowable home office deduction: $\begin{array}{llr} \text { Net income from self-employment before home office } &\$150,000\\ \text { deduction } &\\ \text { Expenses from home (100\%) } &\\ \text { Home mortgage interest } &12,000\\ \text { Property taxes } &4,000\\ \text {Homeowner's insurance } &2,500\\ \text { Utilities } &2,200\\ \text { Depreciation on office portion of home } &1,100\\\end{array}$

A) $5,240
B) $4,140
C) $4,260
D) $21,800