Rebecca has a qualifying home office. The room is 600 square feet and the entire house is 3,000 square feet. Use the following information to determine her allowable home office deduction:

Question

Quizplus · Accepted Answer

To calculate the allowable home office deduction, Rebecca needs to determine the percentage of her home used for business purposes, which is calculated as the square footage of her home office divided by the total square footage of her home. In this case, that would be 600/3,000 = 0.2 or 20%. She can then multiply her actual expenses related to her home office (such as rent or mortgage interest, utilities, repairs, etc.) by this percentage to determine her allowable home office deduction. Without any additional information about Rebecca's expenses, we cannot determine the exact amount of her deduction, but we do know that it would be based on a 20% allocation. Therefore, the closest answer choice to this allocation would be C, $3,500.

Rebecca Has a Qualifying Home Office