Which of the Following Statements Regarding the Home Office Expense

question 6

Multiple Choice

Which of the following statements regarding the home office expense deduction is correct?

• A)The amount of home office expense allowed under the simplified method of computing home office expenses is limited to a fixed amount no matter how much the income from the business and no matter how big the home office.
• B)Taxpayers may choose to use the actual expense method for determining home office expenses in one year and choose the simplified method in a different year.
• C)Under the simplified method of computing home office expenses, a taxpayer is not allowed to deduct any depreciation associated with a home as a home office expense.
• D)All of the above statements are correct.

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