Taxpayers with Home Offices Who Use the Actual Expense Method

question 17

True/False

Taxpayers with home offices who use the actual expense method for computing home office expenses must allocate indirect expenses of the home between personal use and home office use. Only expenses allocated to the home office use are deductible.

---

Definitions:

Normal Good

A type of good whose demand increases when consumer income rises and decreases when consumer income falls.

Electronic Textbooks

Digital versions of textbooks that can be read on computers or e-readers, offering interactive features and updated content.

Complementary Goods

Products or services that are often used together because the consumption of one enhances the value or desire of the other.

Substitute Products

Goods or services that can be used in place of each other, satisfying essentially the same needs.