Which of the following statements regarding limitations on the deductibility of home office expenses of employees is correct?
A) Deductible home office expenses of employees are miscellaneous itemized deductions subject to the 2 percent of AGI floor.
B) Deductible home office expenses of employees are miscellaneous itemized deductions not subject to the 2 percent floor.
C) Deductible home office expenses of employees are for AGI deductions limited to gross income from the business.
D) Deductible home office expenses of employees are for AGI deductions not limited to gross income from the business.

Question

Quizplus · Accepted Answer

Deductible home office expenses of employees are considered miscellaneous itemized deductions subject to the 2 percent of AGI floor limitation, meaning that the expenses must exceed 2% of the employee's adjusted gross income to be deductible. However, this limitation does not apply to self-employed individuals who use a portion of their home for business purposes.

Which of the Following Statements Regarding Limitations on the Deductibility