Which of the following best describes the requirements for a self-employed taxpayer to deduct expenses related...
Which of the following best describes the requirements for a self-employed taxpayer to deduct expenses related to a home office on Schedule C?
The office must be accessible to the public through a separate entrance.
The office must contribute substantially to the profitability of the business.
The office must be used exclusively and regularly for purposes related the taxpayer's business.
The use of a separate office must be a generally accepted practice in the particular field that the business is in.
Homework Answers
Ans is
The office must be used exclusively and regularly for purposes related the taxpayer's business
Reason:-
There are two main requirements:-
1.The office must be used exclusively and regularly for business purposes.
2.It should be principal place of business.
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