Question: Tiffany operates a cosmetic sale business from her home. She uses 500 of 2,500 square feet of the home as an office for the entire year. Her income before her home office deduction is $4,000 and unapportioned expenses for the home are as follows: Mortgage interest $8,500 Property taxes $2,500 Utilities $1,000 Repairs $850 Depreciation for the entire home $9,000. How much can Tiffany deduct for her home office expense if she uses the actual expense method?