Which of the following statements regarding the home office expense deduction is

Question

Which of the following statements regarding the home office expense deduction is correct?

Multiple Choice

a. A taxpayer is not allowed to deduct any depreciation associated with a home as a home office expense.

b. A taxpayer must own a home in order to claim home office expenses.

c. A taxpayer is not allowed to deduct any home office expenses unless the taxpayer has no other place to do business.

d. Taxpayers allocate expenses of the home to the home office based on the size of the office relative to the size of the home

Explanation / Answer

Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities. so going by above explanation option d is correct.

Ans. d

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.