Which of the following statements regarding the simplified safe harbor method of computing the home office expense deduction is CORRECT?

A)

A rate of $10 per square foot of home office space is used in the safe harbor computation.

B)

None of the deduction is treated as depreciation.

C)

The deduction may be used to create a loss.

D)

Up to 500 square feet of home office may be taken into account under this method.