Sergio operates a sole proprietorship. He has a home office that functions as his principal place of business. He uses the home office regularly and exclusively for his business. The home office is 150 sq. ft. Which of the following are accurate? Select all that apply. a. Sergio can deduct $750/year under the safe harbor method b. Sergio can deduct a portion of his utility bills if he uses the actual cost method c. Sergio can depreciate a portion of his home if he uses the actual cost method d. As of 2018, Sergio is no longer entitled to a home office deduction because of recent changes to the tax laws e. If Sergio uses the safe harbor method, he can deduct a portion of his mortgage payments each year
Sergio operates a sole proprietorship. He has a home office that functions as his principal place of business. He uses the home office regularly and exclusively for his business. The home office is 150 sq. ft. Which of the following are accurate? Select all that apply. a. Sergio can deduct $750/year under the safe harbor method b. Sergio can deduct a portion of his utility bills if he uses the actual cost method c. Sergio can depreciate a portion of his home if he uses the actual cost method d. As of 2018, Sergio is no longer entitled to a home office deduction because of recent changes to the tax laws e. If Sergio uses the safe harbor method, he can deduct a portion of his mortgage payments each year
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 20MCQ
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Question
Sergio operates a sole proprietorship. He has a home office that functions as his principal place of business. He uses the home office regularly and exclusively for his business. The home office is 150 sq. ft. Which of the following are accurate? Select all that apply.
a. Sergio can deduct $750/year under the safe harbor method
b. Sergio can deduct a portion of his utility bills if he uses the actual cost method
c. Sergio can depreciate a portion of his home if he uses the actual cost method
d. As of 2018, Sergio is no longer entitled to a home office deduction because of recent changes to the tax laws
e. If Sergio uses the safe harbor method, he can deduct a portion of his mortgage payments each year
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT