Gene Is a Self-Employed Taxpayer Working from His Home

Gene is a self-employed taxpayer working from his home. His net business profit is $7,000 before home office expenses. His allocable home office expenses are $8,000 in total. How are the home office expenses treated on his current year tax return?

A) All home office expenses can be deducted and will result in a $1,000 business loss.
B) Only $7,000 of the office expenses can be deducted, the remaining $1,000 cannot be carried forward or deducted.
C) None of the home office expenses can be deducted because Gene's income is too high.
D) Only $7,000 of the office expenses can be deducted; the remaining $1,000 can be carried forward to future tax years.