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 miscellaneous itemized deductions subject to the 2 percent of AGI floor.
B) Deductible home office expenses are miscellaneous itemized deductions not subject to the 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

Home office expenses are limited to deductions for AGI, which means they are deducted before arriving at adjusted gross income. However, the expenses are limited to the gross income from the business minus non-home office related expenses. This means that the deduction may not exceed the net income from the business that is attributable to the home office.

Which of the Following Statements Regarding Limitations on the Deductibility