Alex Is a Self-Employed Dentist Who Operates a Qualifying Office

question 32

Multiple Choice

Alex is a self-employed dentist who operates a qualifying office in his home.Alex has $180,000 gross income from his practice and $160,000 of expenses directly related to the business,i.e.,non-home office expenses.Alex's allocable home office expenses for mortgage interest expenses and property taxes are $14,000 and other home office expenses are $9,000.What is Alex's total allowable home office deduction?

• A)$9,000
• B)$14,000
• C)$20,000
• D)$23,000

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Definitions:

Geographic Choices

Decisions related to the physical location or distribution of products, services, or marketing efforts based on geographical factors.

Benefit Segmentation

A market segmentation strategy where potential customers are divided based on the specific benefits they seek from products or services.

Full-Time

A term referring to employment in which an individual works the maximum number of hours defined by their employer, typically 40 or more hours per week.

Online Courses

Are educational programs or classes available through the internet, allowing students to learn at their own pace without attending a traditional classroom.