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 itemized deductions.
B)Deductible home office expenses are itemized deductions subject to a 2 percent floor.
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

Deductible home office expenses are for AGI deductions, which means they can be deducted in full without having to meet any percentage-of-income threshold. However, the total deduction is limited to the gross income derived from the business activity that takes place in the home, minus any non-home office-related expenses. This limitation is meant to prevent taxpayers from claiming more deductions than the income they actually generate from their home office.

Which of the Following Statements Regarding Limitations on the Deductibility