Alex is a self-employed dentist who operates a qualifying office in his home.Alex has $180,000 gross income from his practice and $160,000 of expenses directly related to the business,i.e.,non-home office expenses.Alex's allocable home office expenses for mortgage interest expenses and property taxes are $14,000 and other home office expenses are $9,000.What is Alex's total allowable home office deduction?
A)$9,000
B)$14,000
C)$20,000
D)$23,000

Question

Quizplus · Accepted Answer

Alex's total allowable home office deduction is $20,000, which includes $14,000 for mortgage interest and property taxes and $6,000 of other home office expenses (limited by the net income from the business after non-home office expenses).

Alex Is a Self-Employed Dentist Who Operates a Qualifying Office