Dighi,an artist,uses a room in his home (250 square feet) as a studio exclusively to paint.The studio meets the requirements for a home office deduction.(Painting is considered his trade or business.) The following information appears in Dighi's records:

(a) What is the amount of Dighi's home office deduction if he is self-employed?
(b) If some amount is not allowed under the tax law,how is the disallowed amount treated?
(c) Assume all of Dighi's records of expenses relating to the room were destroyed in a major paint spill.How much of a home office deduction,if any,will he be allowed?

Question

Dighi,an artist,uses a room in his home (250 square feet) as a studio exclusively to paint.The studio meets the requirements for a home office deduction.(Painting is considered his trade or business.) The following information appears in Dighi's records:
  
(a) What is the amount of Dighi's home office deduction if he is self-employed?
(b) If some amount is not allowed under the tax law,how is the disallowed amount treated?
(c) Assume all of Dighi's records of expenses relating to the room were destroyed in a major paint spill.How much of a home office deduction,if any,will he be allowed?

Quizplus · Accepted Answer

The Answer of Dighi,an artist,uses a room in his home (250 square feet) as a studio exclusively to paint.The studio meets the requirements for a home office deduction.(Painting is considered his trade or business.) The following information appears in Dighi's records:
  
(a) What is the amount of Dighi's home office deduction if he is self-employed?
(b) If some amount is not allowed under the tax law,how is the disallowed amount treated?
(c) Assume all of Dighi's records of expenses relating to the room were destroyed in a major paint spill.How much of a home office deduction,if any,will he be allowed?

Dighi,an Artist,uses a Room in His Home (250 Square Feet)