Question

Under the simplified method, the maximum office in the home deduction allowed is the greater of $1,500 or the office square feet × $5.

A) True
B) False

Answer 1

The maximum office in the home deduction allowed under the simplified method is the greater of $1,500 or the office square feet multiplied by $5.

Step-by-step explanation:

The statement is True. According to the simplified method for calculating the office in the home deduction, the maximum deduction allowed is the greater of $1,500 or the office square feet multiplied by $5. This means that if the calculation based on the office square feet multiplied by $5 results in an amount that is greater than $1,500, that larger amount becomes the maximum deduction allowed.