Question

Arlene lives in a 700sq ft studio apartment. She runs her own catering business and cooks clients meals in her kitchen. Arlene figures the kitchen is approximately 300 sq. ft. She also cooks are personal meals in the kitchen what percentage of her rent may she deduct as a business use of home expense?

A 0%
B.43%
C.57%
D.100%

Answer 1

Arlene may deduct approximately B. 43% of her rent as a business use of home expense.

Step-by-step explanation:

To calculate the percentage of her rent that Arlene may deduct as a business use of home expense, we need to determine the percentage of her total square footage that is used for her catering business. Arlene's studio apartment is 700 sq ft in total, and her kitchen is approximately 300 sq ft. Therefore, the percentage of her rent that she may deduct is:

Business use of home % = (Business square footage / Total square footage) * 100

Business use of home % = (300 sq ft / 700 sq ft) * 100

Business use of home % ≈ 42.857% ≈ 43%

Therefore, the answer is B. 43%