Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the 2016 tax year.
a.
If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office.
b.
If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.

Question

Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the 2016 tax year.
a.​
If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office.
b.​
If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.

Quizplus · Accepted Answer

The Answer of Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the 2016 tax year.
a.​
If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office.
b.​
If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.

Dennis Is a Self-Employed Hair Stylist Who Operates a Salon