Kendra Is a Self-Employed Taxpayer Working Exclusively from Her Home

Kendra is a self-employed taxpayer working exclusively from her home office.Before the home office deduction,Kendra has $5,000 of net income.Her allocable home expenses are $10,000 in total.How are the home office expenses treated on her current year tax return?

A) Only $5,000 home office expenses may be deducted,resulting in net business income of zero.The extra $5,000 of home office expenses may be carried forward and deducted in a future year against business income.
B) Only $3,000 a year of the home office expenses may be deducted.
C) All home office expenses may be deducted,resulting in a business loss of $5,000.
D) Only $5,000 of home office expenses may be deducted,resulting in a net business income of zero.None of the extra $5,000 of home office expenses may be carried forward or deducted.