Dana Wilcox is self employed she qualifies to deduct home of

Dana Wilcox is self employed. she qualifies to deduct home office expenses. Her office occupies 25% of her home. she uses the simplified method. she paid 2000 qualified acquisition interest. Her income exceed her expenses so she has no net income limitation. How much of the 2000 will she deduct as a business expense? 0 200 1500 2000

Solution

Answer is: 0

when simplified method is used, actual expenses are not allowed. amount of deduction = the area used for business ( maxium of 300 sq. foot) * 5.

the actual expenses are ignored.