In Which of the Following Independent Situations Is the Taxpayer

question 54

Multiple Choice

In which of the following independent situations is the taxpayer entitled to deduct expenses related to the home office?
I.A real estate agent employed by a local real estate agency owns several rental properties. She regularly and exclusively uses a second bedroom in her home solely as an office for bookkeeping and other activities related to management of the rental properties. She has no other place to perform these functions.
II.An attorney employed by a large law firm frequently brings work home from the office. She uses a study in her home for doing this work as well as managing her investment portfolio.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Ambivalence

Mixed feelings or contradictory attitudes towards someone or something.

Adults Express

The ways in which adults convey their thoughts, feelings, or opinions.

Mother's Income

The amount of financial earnings or revenue generated by a mother through employment, business, or other means.

Men's Income

The earnings or financial gain received by men for their labor or services.