Jamison Is Self-Employed and He Works Out of an Office

question 77

Multiple Choice

Jamison is self-employed and he works out of an office in his home.After allocating the home-related expenses between the business office and the rest of the home,which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct?

• A)Depreciation expense,other expenses,property taxes and interest expense
• B)Other expenses,depreciation expense,property taxes and interest expense
• C)Property taxes and interest expense,depreciation expense,other expenses
• D)Other expenses,property taxes and interest expense,depreciation expense
• E)None of these statements is correct.

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Definitions:

Living Expenses

The costs associated with daily living, including housing, food, transportation, and utilities.

Live Alone

The act or state of residing in a dwelling by oneself without cohabitants.

Majority

The greater part or number; often used to denote the age at which a person gains full legal rights and responsibilities.

White

A racial classification often used to refer to people of European origin, but can also denote purity or absence of color in different contexts.