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

question 51

Multiple Choice

Jamison is self-employed and he works out of an office in his home. 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) Property taxes and interest expense, depreciation expense, other expenses
• D) Other expenses, property taxes and interest expense, depreciation expense
• E) None of these statements is correct.

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Definitions:

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws enacted by legislative bodies.

U.S. Constitution

The supreme law of the United States, establishing the framework of national government and the rights and freedoms of individuals.

Sexual Harassment

Unsolicited sexual propositions, solicitations for sexual benefits, and any form of sexual natured verbal or physical harassment.

Paid Vacation

Employer-provided benefit that offers employees paid time off from work, which can be used for personal time, holidays, or travel.