Question

Which of the following statements regarding business expenses is NOT correct?

A) If the taxpayer qualifies for the home office deduction, the deduction cannot
exceed the gross income from the taxpayer’s business.
B) Expenses related to carrying on a taxpayer's trade or business are deductible in
calculating AGI.
C) For 2020, a self-employed person may deduct 100% of the cost of health
insurance as an above-the-line deduction in calculating adjusted gross income
(AGI).

D) Self-employed taxpayers may deduct qualifying home office expenses only as a
miscellaneous itemized deduction.

Answer 1

Your required answer is option D i.e. Self-employed taxpayers may deduct qualifying home office expenses only as a miscellaneous itemized deduction.

Explanation:

A self-employed taxpayers is not qualify to deduct qualifying home expense as that are not permissible under law. a taxpayer cannot claim home expense. However all other statement in above question is correct.

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