Classfication of Home Office Expenses Depending on the nature of the Home Office Expenses, identify if...

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Classfication of Home Office Expenses Depending on the nature of the Home Office Expenses, identify if the expense is .Allowed as deduction NOT Allowed as deduction Jackie is a self-employed consultant who uses 10% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Jackie also uses her den as an office (10% of the total floor space of her home) to prepare bills and keep records. The den is also used by her children as a TV room. Fin is a self-employed tutor, regularly meeting with clients in a 100 square foot area of his home. Fin is terrible at keeping records. Without the records, he will be able to deduct $500 for a home office deduction for AGI. Answer: TRUE Explanation: The IRS allows an optional safe harbor method for Dr. Austin is a self-employed surgeon who per forms surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals. June, who is a self-employed plumber, earns her living in her customer's homes. She maintains an office at home where she bills clients and does other paper work related to her plumbing business. Cassie is an employed as a sales representative of Montgomery Products, an out-of-town company which does not have a local office. She uses an extra room in her home to plan her sales calls, write up orders and store inventory. The use of this room in her home is a required part of the job., and this work is the only use of this room. Classfication of Home Office Expenses Depending on the nature of the Home Office Expenses, identify if the expense is .Allowed as deduction NOT Allowed as deduction Jackie is a self-employed consultant who uses 10% of her residence as an office. The office is used exclusively for business and is frequented by customers on a regular basis. Jackie also uses her den as an office (10% of the total floor space of her home) to prepare bills and keep records. The den is also used by her children as a TV room. Fin is a self-employed tutor, regularly meeting with clients in a 100 square foot area of his home. Fin is terrible at keeping records. Without the records, he will be able to deduct $500 for a home office deduction for AGI. Answer: TRUE Explanation: The IRS allows an optional safe harbor method for Dr. Austin is a self-employed surgeon who per forms surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals. June, who is a self-employed plumber, earns her living in her customer's homes. She maintains an office at home where she bills clients and does other paper work related to her plumbing business. Cassie is an employed as a sales representative of Montgomery Products, an out-of-town company which does not have a local office. She uses an extra room in her home to plan her sales calls, write up orders and store inventory. The use of this room in her home is a required part of the job., and this work is the only use of this room.

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