Gene is a self-employed taxpayer working from his home. his net business profit is $7,000 before home office expenses. his allocable home office expenses are $8,000 in total. how are the home office expenses treated on his current year tax return?
a. only $7,000 of the office expenses can be deducted, the remaining $1,000 cannot be carried forward or deducted. b. all home office expenses can be deducted and will result in a $1,000 business loss. c. none of the home office expenses can be deducted because gene's income is too high. d. only $7,000 of the office expenses can be deducted; the remaining $1,000 can be carried forward to future tax years.