Jamison is self-employed and he works out of an office in his home. After allocating the home-related expenses between the business office and the rest of the home, which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct?

A. Depreciation expense, other expenses, property taxes and interest expense

B. Other expenses, depreciation expense, property taxes and interest expense

C. Property taxes and interest expense, depreciation expense, other expenses

D. Other expenses, property taxes and interest expense, depreciation expense

E. None of the above statements is correct.

Question

Social Studies

Kaylah Bishop

8 September, 14:14

Jamison is self-employed and he works out of an office in his home. After allocating the home-related expenses between the business office and the rest of the home, which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct?

A. Depreciation expense, other expenses, property taxes and interest expense

B. Other expenses, depreciation expense, property taxes and interest expense

C. Property taxes and interest expense, depreciation expense, other expenses

D. Other expenses, property taxes and interest expense, depreciation expense

E. None of the above statements is correct.

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Answers (1)

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Jadyn Huff · Answer 1

Answer: C. Property taxes and interest expense, depreciation expense, other expenses

Explanation:

Since the office is in the house, he will pay a tax for the house, interest, depreciation expense for the property and other expenses.