Elise Is a Self-Employed Business Consultant Who Operates Her Business

question 155

Multiple Choice

Elise is a self-employed business consultant who operates her business out of an office in her home. The home office passes the qualifying tests for deducting office in the home expenses. For the current tax year, Elise earns $90,000 from her business activities. She incurs $82,000 in supplies, travel expenses, wage expense, etc. Elise's mortgage interest and real estate taxes allocable to the home office space were determined to be $9,000. Also, other expenses including insurance, repairs and maintenance, utilities, and depreciation allocable to the home office space total $11,000. How much of the other expenses (insurance, repairs, etc.) can Elise deduct?

• A)$- 0 -
• B)$2,000
• C)$8,000
• D)$9,000
• E)$11,000

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Definitions:

Communicative Process

The method and dynamics by which information is exchanged and understood among individuals or groups, highlighting the importance of context and medium.

Corporations

Entities established to conduct business, characterized by having legal rights, responsibilities, and a structure that separates them from their members.

Human Identity

encompasses the traits, experiences, relationships, and values that define a person as an individual, contributing to their sense of self and distinctiveness from others.

Active Participant

An individual who takes an engaged and contributory role in processes or activities, rather than being passive.