Gene Is a Self-Employed Taxpayer Working from His Home

question 64

Multiple Choice

Gene is a self-employed taxpayer working from his home. His net business profit is $7,000 before home office expenses. His allocable home office expenses are $8,000 in total. How are the home office expenses treated on his current year tax return?

• A)All home office expenses can be deducted and will result in a $1,000 business loss.
• B)Only $7,000 of the office expenses can be deducted, the remaining $1,000 cannot be carried forward or deducted.
• C)None of the home office expenses can be deducted because Gene's income is too high.
• D)Only $7,000 of the office expenses can be deducted; the remaining $1,000 can be carried forward to future tax years.

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Definitions:

Heterosexist

A worldview that promotes heterosexuality as the normal or preferred sexual orientation, often marginalizing or discriminating against non-heterosexual behaviors and identities.

Polygamy

Expands the nuclear family “horizontally” by adding one or more spouses (usually women) to the household.

Spouses

Individuals legally or socially united in marriage, partnering to navigate life’s endeavors together.

Marriage

Is a legally and socially sanctioned union, typically between two individuals, that is regulated by laws, customs, beliefs, and practices that confer rights and obligations to the partners.