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Question - Verne maintains an office in his home which he only uses to conduct a consulting business. During the year he collects $18,000 in consulting fees, pays $5,000 in various business expenses (not connected to a home office), and properly allocates $12,000 in mortgage interest & property taxes and $2,000 of his utilities expense to the use of his home office. What amount of mortgage interest, property taxes, and utilities may Verne deduct in the current year in computing his net income or loss from the consulting business?
A. $0
B. $2,000
C. $7,000
D. $13,000
E. $14,000
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