Q. What’s your opinion of Cisco Systems Inc. stock?
P.G., via the Internet
A. The world’s leading supplier of data networking equipment and software has been playing “let’s make a deal” this year.
The cash-rich company paid $2.9 billion for Starent Networksand another $44 million for the set-top box business of DVN Holdings of Hong Kong.
It spent $183 million for ScanSafe Inc. and $105 million for Tidal Software.
Cisco Chief Executive John Chambers has said the firm aims to gain market share in a tech recovery.
Boosted by those moves and the cautiously upbeat outlook, shares of Cisco Systems (CSCO) were up 47 percent this year through Wednesday following last year’s 40 percent decline.
Cisco expects revenue to grow 1 to 4 percent on increased demand in its second fiscal quarter ending in January. That would be its first quarterly revenue growth in a year.
The consensus recommendation on Cisco stock is “buy,” according to Thomson Reuters, consisting of 16 “strong buys,” 10 “buys,” 13 “holds,” one “underperform” and one “sell.”
Q. What portion of a home office is deductible?
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N.S., via the Internet
A. To be deductible, the home office is required by the IRS to be used “exclusively and regularly” as your principal place of business; as a place to meet or deal with patients, clients or customers in the normal course of your business; or as a place for storage of inventory or product sample.
“You can’t use it part of the time for personal use,” said Mitchell Kauffman, certified financial planner with Kauffman Wealth Services.
The amount deducted depends on the percentage of your home that is used for business.
For example, if the office represents 10 percent of your square footage, apply that percentage to indirect expenses such as mortgage interest and utilities, said Kauffman. Then you can write off direct business expenses, Kauffman added.
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Andrew Leckey answers questions only through the column. E-mail him at your [email protected].