Alison is an interior designer with her own business. She does not have an office as she thinks it would just be a waste of money as her clients do not come to her, but she goes to the clients. It is crucial to her business that she be able to visit her client’s premises to view their homes before providing her services. Alison has set aside one room in her home as her office and uses it exclusively for her interior designing work. During the year, Alison incurred expenses in travelling to meet her clients at their home and sustained increased expenditure on electricity, gas, and cleaning in relation to her office. Alison owns her home and pays interest on her mortgage monthly. Last month, Alison was late in paying her monthly interest charge and had to pay a penalty of $150.

Advise Alison as to the deductibility of the abovementioned expenses.

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Explanation The costs Alison incurred for travel to meet her clients at their homes and the addition... View the full answer