Which of the following statements regarding the home office expense deduction is
ID: 2485474 • Letter: W
Question
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 these are correct.
Explanation / Answer
The correct answer is option (D).