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:

Sports Fans

Individuals who exhibit enthusiasm and support for sports teams or athletes.

College Students

Individuals enrolled in institutions of higher education to pursue degree programs.

Poisson Probabilities

Probabilities that describe the likelihood of a given number of events happening in a fixed interval of time or space, assuming the events occur with a known constant rate and independently of the time since the last event.

Poisson Formula

A mathematical formula used to calculate the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant mean rate and independently of the time since the last event.