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.

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Definitions:

Business Cycle

The cyclical fluctuations in economic activity that an economy experiences over a period of time, including periods of expansion and contraction.

Last Recession

The most recent period of significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production.

Month/Year

Month/Year typically denotes a specific point in time, used for referencing, scheduling, and historical data compilation, often in the format MM/YYYY.

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the amount of money or credit available in the economy.