Which of the following statements regarding the home office expense deduction is correct?
A)Taxpayers may 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 may allocate expenses of the home to the home office based on the size of the office relative to the size of the home. This method is known as the "Simplified Option" and is available for taxpayers who use their home for business purposes. However, there are specific requirements that must be met in order to qualify for this deduction, such as using a portion of the home regularly and exclusively for business purposes.

Which of the Following Statements Regarding the Home Office Expense