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Moduel 3 90. Mark Pari is a self-employed electrician who exclusively uses a room in his home to

perform the administrative functions related to his business. The room is 250

square feet of the 2,500 total square feet of his home. Marks income from his

business before considering the cost of his home office is $62,890. He incurs the

following expenses related to his home:

Mortgage interest $10,000

Property taxes 1,500

Insurance 600

Gas and electric 1,800

Repairs and maintenance 500

Cable television 350

Phone ($15 per month for a separate phone

number for the office) 420

House cleaning 1,400

Long-distance phone calls (business-related) 670

Kitchen renovations 4,700

Assume that the home is worth $200,000. Marks basis is 140,000, the value of the land

is 20% of basis, and the applicable depreciation percentage is 2.564%. Complete form

8829 using the above information. Marks Social Security number is 136-42-5677.

Forms and instructions can be downloaded from the IRS Web site (www.irs.gov).

Please give me form number form 8829 what goes on what line and how you got it so I can fill out the form correctly.

Also form Schedule C what goes on what line and how you got it so I can understand and fill out the form correctly.

I have been working on this for 2 days and I believe Iam over thinking it and getting very frustrated. I believe if I can get it right then I can learn from that and understand where and why things go where they do correctly.

Thank you in advance Elizabeth

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