Gary uses the family room of his home for his business.The children share his computer for their homework and games.The family room also contains the TV and homework space for the children.The SARS is likely to disallow his deduction for this space because:
A)a separate space must be clearly set aside for the sole use of the business.
B)his business did not generate enough income to qualify as a real business.
C)no deduction is allowed for space in the home used for a business.
D)The SARS designates any home-based business as a hobby and hobby expenses are not deductible.

Question

Quizplus · Accepted Answer

To be eligible for a deduction for a home office, the space must be clearly set aside for the sole use of the business. Sharing the space for personal use, such as children's homework and games, disqualifies it as an exclusive business space.

Gary Uses the Family Room of His Home for His