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jack operates an accounting practice out of the spare bedroom in his 8-room house.This room is...

jack operates an accounting practice out of the spare bedroom in his 8-room house.This room is jack's principal place of business and it is used exclusively for business purposes.Last year,jack paid $600 for home insurance ,$1400 in utilities ,$2,400 in property tax,$5,600 in mortgage principal and $8,900 in mortgage interest .He does not claim capital cost allowance.How much can jack deduct as a business-use-of-home expense?

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Answer #1

Home insurance $600

Utilities $1400

Property tax $2400

Mortgage principal $5600

Mortgage interest $8900

Total $18900

Share 1/8th

Allowable expense $2362.5

Hence $2362.5 can deduct as bussiness expense.

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