Christine income from consulting

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"Christine is employed full time as an accountant for a national hardware chain. She also has a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home are as follows: real property taxes $3,900 interest on home mortgage 4,000 operating expenses of home 1,100 depreciation allocated to 20% business use 1,600 Christine's income from consulting is 16,000, and the related expenses are $5,000.

A. What is Christine's office in the home deduction?

B. Suppose that Christine also spent $3,000 to repaint and replace the carpet in the office. How do these additional cost change the answer to part (a)?

C. Suppose that Christine's income from consulting is only $8,000 (not $16,000). How does this change the answer to part (a)?

Reference no: EM13132107

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