Midterm Exam Question 16

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Midterm Exam Question 16

Question

Midterm Exam Question 16

The following individuals maintained offices in their home:

(1)    Dr. Austin is a self-employed surgeon who performs surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals.

(2)    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 paperwork related to her plumbing business.

(3)    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.

 

Who is entitled to a home office deduction?

  1.   Dr Austin
  2. Dr. Austin and June
  3. All of the taxpayers are entitled to a deduction.
  4. Cassie and June

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This question is taken from Accounting 015 – Tax Accounting I » Spring 2021 » Midterm Exam