Which of the following statements regarding the home office expense deduction is correct?
A)Taxpayers allocate expenses of the home to the home office based on the size of the office relative to the size of the home.
B)A taxpayer is not allowed to deduct any home office expenses unless the taxpayer has no other place to do business.
C)A taxpayer is not allowed to deduct any depreciation associated with a home as a home office expense.
D)A taxpayer must own a home in order to claim home office expenses.

Question

Quizplus · Accepted Answer

Taxpayers allocate expenses of the home to the home office based on the size of the office relative to the size of the home. This is done by calculating the percentage of the home that is used for business purposes and deducting that percentage of expenses, such as rent, mortgage interest, utilities, and insurance.

Which of the Following Statements Regarding the Home Office Expense