Cindy maintains an office in her home that comprises 22% (390 square feet) of total floor space. Gross income for her business is $50,150, and her residence expenses are as follows:
Real property taxes $4,668
Interest on mortgage $7,780
Operating expenses $3,890
Depreciation (based on 22% business use) $4,835
If required, round your final answer to the nearest dollar.
What is Cindy’s office in the home deduction based on:
a. The regular method?
b. The simplified method?