Question

Ann is a self-employed restaurant critic who does her work exclusively from a home office. ann's income is $25,000 before the home office deduction this year. her office takes up 200 square feet of her 1,000-square-foot apartment. the total expenses for her apartment are $6,000 for rent, $1,000 for utilities, $200 for renter's insurance, and $800 for pest control and other maintenance.

Answer 1

Total expenses for the apartment are:- Rent :                                    $6,000- Utilities:                                 $1,000- Renter`s insurance:                 $200- Pest control & maintenance:    $800                                                --------------                                       Sum: $8,000Answer: Ann`s home office deductions are $8,000.