In Which of the Following Independent Situations Is the Taxpayer

question 91

Multiple Choice

In which of the following independent situations is the taxpayer entitled to deduct expenses related to the home office? I. II. A real estate agent employed by a local real estate agency owns several rental properties. She regularly and exclusively uses a second bedroom in her home solely as an office for bookkeeping and other activities related to management of the rental properties. She has no other place to perform these functions. An attorney employed by a large law firm frequently brings work home from the office. She uses a study in her home for doing this work as well as managing her investment portfolio.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements are correct.
• D) Neither statement is correct.

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Definitions:

Strikes

Work stoppages caused by the mass refusal of employees to work, usually in protest against working conditions, policies, or other labor issues.

Factory Conditions

The working conditions in manufacturing establishments, often highlighted by issues related to worker safety, health hazards, and long hours.

1830s

A decade characterized by significant political, social, and technological changes around the world, including the start of the British Industrial Revolution.

Bargaining Power

The ability of one party in a negotiation to influence the terms and conditions due to its resources, alternatives, or strategic position.