Which of the following statements regarding limitations on the deductibility of home office expenses of self-employed taxpayers is correct?
A)Deductible home office expenses are miscellaneous itemized deductions subject to the 2 percent of AGI floor.
B)Deductible home office expenses are deducted as itemized deductions.
C)Deductible home office expenses are for AGI deductions limited to gross income from the business minus non-home office-related expenses.
D)Deductible home office expenses are for AGI deductions and may be deducted without limitation.

Question

Quizplus · Accepted Answer

Home office expenses of self-employed taxpayers are considered as business-related expenses, which are for AGI deductions. However, they are limited to gross income from the business minus non-home office-related expenses. Therefore, option C is correct. Options A and B are incorrect because home office expenses are not classified as miscellaneous itemized deductions but as business expenses. Option D is also incorrect because there is a limitation on the amount of home office expenses that can be deducted.

Which of the Following Statements Regarding Limitations on the Deductibility