Garland uses the family room of his home for his business. The children share his computer for their homework and games. The family room also contains the TV and homework space for the children. The IRS is likely to disallow his deduction for this space because:
A. a separate space must be clearly set aside for the sole use of the business.
B. his business did not generate enough income to qualify as a real business.
C. no deduction is allowed for space in the home used for a business.
D. the IRS designates any home-based business as a hobby and hobby expenses are not deductible.
Answer: A
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