Final answer:
Yes, Carol may be able to deduct home-office expenses under certain conditions. The home-office must be exclusive used for business purposes, the primary place of business or used to meet with clients. Expenses that may be deducted include a portion of utilities, rent, property taxes, and depreciation.
Step-by-step explanation:
Yes, Carol may be able to deduct home-office expenses under certain conditions. The Internal Revenue Service (IRS) allows self-employed individuals or employees who work from home to deduct eligible expenses related to their home office. To qualify for this deduction, the home-office must be exclusively used for business purposes and it should be the primary place of business or used to meet with clients or customers.
Expenses that may be deducted include a portion of utilities, rent or mortgage interest, property taxes, and even depreciation. However, this deduction is subject to specific limitations and requirements set by the IRS, so it is recommended that Carol consults with a tax professional or refer to IRS guidelines for detailed eligibility and limitations.