In Which of the Following Independent Situations Is the Taxpayer

question 54

Multiple Choice

In which of the following independent situations is the taxpayer entitled to deduct expenses related to the home office?
I.A real estate agent employed by a local real estate agency owns several rental properties. She regularly and exclusively uses a second bedroom in her home solely as an office for bookkeeping and other activities related to management of the rental properties. She has no other place to perform these functions.
II.An attorney employed by a large law firm frequently brings work home from the office. She uses a study in her home for doing this work as well as managing her investment portfolio.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Turbulent Environment

An unpredictable or unstable state of affairs in which change happens rapidly and unpredictably, affecting organizations or activities.

Career Advantage

A competitive edge that a person might have in their professional life, stemming from skills, experiences, or qualifications.

Contemporary Organisations

Contemporary organizations are modern entities characterized by their adaptability, innovation, and a flat or flexible structure, often focusing on technology and employee empowerment.

Sustainable Career Advantage

A long-term benefit in one's professional life that enables them to maintain competitiveness and fulfillment in their career.