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20 Dierdre is a sole proprietor and wishes to use the simplified method for business-use-of-home expenses....

20 Dierdre is a sole proprietor and wishes to use the simplified method for business-use-of-home expenses. Her mortgage interest for 2017 is $3,500, and real estate taxes are $975. Her home office is 400 square feet, and her total home square footage is 1,800 square feet. What is the home office expense deduction?

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Answer #1

Simplified method is simply straightforward method for determining home office deduction.u can claim standard deduction of $5 for per square foot upto 300 square foots, thus it cant exceed $ 1500. Hoever u can claim this deduction on schedule A if u can itemize the deductions.Therefore home office deduction available for Dierdre for the year 2017 is sum of her mortgage interest $3500 and real estate taxes $ 975.

Therefore dierdre's home office deduction is for the year 2017 is $4475($1800+$975).

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