Case Study Question

Based on the information provided in the case scenario for Ron and Sandy Peterson, which of the following statements regarding Sandy's home office deduction is correct?

A$)$

Sandy may only deduct her qualifying home office expenses as a miscellaneous itemized deduction.

B$)$

The amount Sandy may deduct this year for qualifying home office expenses is unlimited.

C$)$

Sandy may deduct her qualifying home office expenses when calculating adjusted gross income $($AGI$).$

D$)$

Sandy is not eligible to deduct her home office expenses.