Which of the Following Statements Regarding Limitations on the Deductibility

question 56

Multiple Choice

Which of the following statements regarding limitations on the deductibility of home office expenses of self-employed taxpayers is correct?

• A) Deductible home office expenses are for AGI deductions and may be deducted without limitation.
• B) Deductible home office expenses are miscellaneous itemized deductions not subject to the 2 percent floor.
• C) Deductible home office expenses are for AGI deductions limited to (gross income from the business minus non-home office related expenses).
• D) Deductible home office expenses are miscellaneous itemized deductions subject to the 2 percent of AGI floor.

---

Definitions:

Vacuum Booster

A device that uses engine vacuum to increase the force applied to the brake pedal, thereby enhancing braking power and efficacy.

Electronic Stability Control

A safety technology that automatically detects and reduces loss of traction (skidding), helping to prevent the vehicle from veering off course.

Antilock Brake Systems

A safety system in vehicles that prevents the wheels from locking up during braking, allowing the driver to maintain steering control.

Permanent-Magnet Wheel Speed Sensor

A sensor that uses a permanent magnet to detect wheel speed, often used in anti-lock braking systems.