Explore BrainMass

Home office deductions

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 has an office at home to take care of business at night or during weekends but she also maintains an office downtown where she bills clients and does other paperwork related to her plumbing business.
(3) Cassie, who is an employee of Montgomery Electrical, is provided an office at the work but does significant administrative work at home. Her employer does not require her to do extra work but she feels it is necessary.

Who is entitled to a home office deduction?

A. Dr. Austin
B. Dr. Austin and June
C. Cassie and June
D. All of the taxpayers are entitled to a deduction.

Solution Preview

B - meet self employed definition

You are correct. Dr. Austin and June both ...

Solution Summary

This solution provides the correct answer with explanation to the home office deduction question listed. The applicable IRS tax code is also referenced.