Cindy maintains an office in her home that comprises 16% (210 square feet) of total floor space. Gross income for her business is $50,900, and her residence expenses are as follows:
Real property taxes $5,532
Interest on mortgage 9,220
Operating expenses 4,610
Depreciation (based on 16% business use) 6,035
If required, round your answer to the nearest dollar.
What is Cindy’s office in the home deduction based on:
a. The regular method?
b. The simplified method?