Question: Paul is self - employed and has a qualifying home office which is 2 0 % of his total home. His income far exceeds his

Paul is self

-

employed and has a qualifying home office which is

20 %

of his total home. His income far exceeds his expenses, so he has no net income limitations to consider. This year, he paid $

1, 500

for utilities for the entire home. Which of the following correctly states his tax treatment of this amount if he uses the standard method to calculate his home

-

office deduction by calculating and substantiating actual expenses?

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