As a sole proprietor, you constructed another small building on your property to use as a home office. 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 incremental 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)

Question

Quizplus · Accepted Answer

The Answer of As a sole proprietor, you constructed another small building on your property to use as a home office. 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 incremental 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 on Your