Which of the Following Statements Regarding the Home Office Expense

question 69

Multiple Choice

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

• A) Taxpayers may choose to use the actual expense method for determining home office expenses in one year and choose the simplified method in a different year.
• B) For home offices that are at least 300 square feet, the amount of home office expense allowed under the simplified method of computing home office expenses is limited to a fixed amount no matter how much the income from the business.
• C) Under the simplified method of computing home office expenses, a taxpayer is not allowed to deduct any depreciation associated with a home as a home office expense.
• D) All of the above statements are correct.

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Definitions:

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DSM-5 Diagnostic Criteria

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