In Connection with the Office in the Home Deduction, Comment

question 169

Essay

In connection with the office in the home deduction, comment on the following:
a.Mixed use (i.e., business and personal) of the portion of the home allocated to business.
b.The difference between direct and indirect expenses for deduction purposes.
c.The classification of the expense (i.e., dfor or dfrom AGI).

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Definitions:

AICPA

Stands for American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

SEC

The U.S. Securities and Exchange Commission, the federal agency responsible for enforcing federal securities laws and regulating the securities industry.

FASB

stands for the Financial Accounting Standards Board, which is responsible for establishing accounting and financial reporting standards in the United States.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.