Jim Operates a Business Out of His Home

question 63

Multiple Choice

Jim operates a business out of his home. One room in his home is used for business and qualifies as a home office. Which of the following allocable expenditures can Jim use in computing his home office expense deduction?
I.Jim pays his housekeeper $25 a week to sweep, dust and straighten-up his office.
II.Jim's fire and casualty insurance premiums on his home are $800.
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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:

Willingness

A tendency or predisposition to be open to doing something without resistance or hesitation.

Relationship-Oriented

An approach or behavior that prioritizes building and maintaining strong, positive relationships with others.

Task-Oriented

This term refers to focusing on completing specific tasks or objectives, typically in a work or project setting.

Low-Control Situations

Low-control situations refer to circumstances or environments where individuals or organizations have minimal influence or authority over outcomes or processes.