Multiple Choice Question Which of the following statements is INCORRECT regarding the home office deduction when using the actual expense method? Multiple choice question. Any expense that is NOT deductible in the current year due to the net income limitations can be carried forward to future years. Tier 2 expenses are deductible to the extent that the Schedule C net income exceeds the tier 1 expenses. Tier 3 expenses are deductible to the extent that the Schedule C net income exceeds both the tier 1 and tier 2 expenses. Tier 1 expenses are deductible to the extent of the Schedule C net income before considering the home office deduction