As a sole proprietor, you constructed another small building for a home office on your property. Your lot is 80 ft x 80 ft, and the new building takes up 20 ft x 20 ft of the lot. Your property taxes were $2,800 prior to the construction of the building. This year, property taxes went up to $3,600 to account for the addition. You'd like to allocate your property taxes so the business portion can be deducted on your annual tax return. Using the stand-alone method to allocate the common costs, what is your personal share and what amount can be deducted on your annual tax return as a business expense? (Do not round intermediary calculations, round your final answer to the nearest whole dollar)

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The Answer of As a sole proprietor, you constructed another small building for a home office on your property. Your lot is 80 ft x 80 ft, and the new building takes up 20 ft x 20 ft of the lot. Your property taxes were $2,800 prior to the construction of the building. This year, property taxes went up to $3,600 to account for the addition. You'd like to allocate your property taxes so the business portion can be deducted on your annual tax return. Using the stand-alone method to allocate the common costs, what is your personal share and what amount can be deducted on your annual tax return as a business expense? (Do not round intermediary calculations, round your final answer to the nearest whole dollar)

As a Sole Proprietor, You Constructed Another Small Building for a Home