Mr Dilly Has Expenses Relating to a Qualifying Home Office

question 23

True/False

Mr. Dilly has expenses relating to a qualifying home office of $14,320. The taxable income generated by the business before any deduction of home office expenses was $13,700. His allowable home office deduction is $14,320.

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Definitions:

Records

Documents or electronic files that preserve information or data for reference or analysis.

Numeric Systems

A method or standard for expressing numbers, relying on a specific base, such as decimal, binary, or hexadecimal.

Filing Systems

An organizational method used to store and manage information in various formats, including digital or physical documents.

Indexing Rules

Rules used as guidelines for the sequencing of files based on current business practice.