Question

Desi is a self-employed sales consultant. He meets the requirements to deduct expenses related to the use of his home office. The office measures 110 square feet. If Desi uses the simplified method to deduct expenses, how much may he deduct for the business use of his home?

Answer 1

Desi can deduct $550 for the business use of his home office by multiplying the area of his office (110 square feet) by the standard rate of $5 per square foot using the simplified method.

Step-by-step explanation:

Desi is eligible to deduct expenses for the business use of his home office using the simplified method.

This method assigns a standard deduction of $5 per square foot for the area of your home used exclusively for business, with a maximum of 300 square feet.

As Desi's office measures 110 square feet, we multiply 110 by $5 to calculate the deduction amount.

110 square feet x $5 per square foot = $550

Therefore, Desi can deduct $550 for the business use of his home office using the simplified method.