Jamison Is Self-Employed and He Works Out of an Office

question 38

Multiple Choice

Jamison is self-employed and he works out of an office in his home. Jamison itemizes his deductions, and the sum of his itemized deduction for non-home business taxes and the real property taxes allocated to business use of the home is less than $10,000. After allocating the home-related expenses between the business office and the rest of the home, which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct? (Jamison does not use the simplified method for determining the home office expense deduction.)

• A)Depreciation expense, other expenses, property taxes and interest expense.
• B)Other expenses, depreciation expense, property taxes and interest expense.
• C)Interest expense and property taxes, other expenses, depreciation expense.
• D)Other expenses, property taxes and interest expense, depreciation expense.
• E)None of the choices are correct.

---

Definitions:

Carcinoma Lesion

A malignant lesion or tumor that arises from epithelial cells, often found in the skin or lining of internal organs.

Prostate-specific Antigen

A protein produced by the prostate gland, elevated levels of which can indicate prostate cancer or other prostate disorders.

Transrectal Ultrasound

An imaging test using sound waves to create pictures of the prostate gland and surrounding tissues, performed by inserting a probe into the rectum.

Prostate Biopsy

A procedure where small samples of the prostate gland are removed to be examined under a microscope for cancer or other conditions.