Dighi, an artist, uses a room in his home (250 square feet)as a studio exclusively to paint. The studio meets the requirements for a home office deduction. (Painting is considered his trade or business.)The following information appears in Dighi's records:
Expenses related to home office:
(a)What is the amount of Dighi's home office deduction if he is self-employed?
(b)If some amount is not allowed under the tax law, how is the disallowed amount treated?
(c)Assume all of Dighi's records of expenses relating to the room were destroyed in a major paint spill. How much of a home office deduction, if any, will he be allowed?
Definitions:
Validation Theory
A concept in psychology that suggests the acceptance and acknowledgment of an individual's experiences and feelings can lead to their emotional and psychological well-being.
ZMOT
Refers to the "Zero Moment of Truth," a marketing concept indicating the moment when a consumer researches a product online before making a purchase decision.
FMOT
The "First Moment of Truth," which refers to the critical moment when a consumer encounters a product on a store shelf and makes a purchase decision.
Social Commerce
The integration of social media platforms and e-commerce functionalities to drive online sales and interactions with customers.
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