Which of the Following, If Any, Is an Advantage of Using

question 75

Multiple Choice

Which of the following, if any, is an advantage of using the simplified method for determining the office in the home deduction?

• A)No depreciation on the personal residence has to be computed.
• B)The exclusive use requirement does not have to be met.
• C)It allows the expense to be classified as a deduction for AGI.
• D)It can also be used for a residence that is rented (not owned) by the taxpayer.
• E)None of these.

---

Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and basic necessities have been paid.

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, gender, and other demographic factors.