Which, if any, of the following is an advantage of using the simplified method for determining the office in the home deduction?
A) No depreciation on the personal residence has to be computed.
B) The exclusive use requirement does not have to be met.
C) Allows the expense to be classified as a deduction for AGI.
D) Can also be used for a residence that is rented (not owned) by the taxpayer.
E) None of these.

Question

Quizplus · Accepted Answer

With the simplified method, the taxpayer is allowed to deduct $5 per square foot of the portion of the home used for business (up to a maximum of 300 square feet). This method eliminates the need for the taxpayer to calculate and allocate expenses such as mortgage interest, property taxes, and home depreciation, which can be time-consuming and complicated. Therefore, choice A is the advantage of using the simplified method.

Which, If Any, of the Following Is an Advantage of Using