Deductions & credits

I think you also need to be mindful of the limitations of the simplified method, i.e., there needs to be a profit from the trade or business, the home office deduction cannot create or increase a loss. The doctor's case was decided a long time ago, before the simplified method was introduced, and it dealt with the law in existence at that time. However, it was noted in his case that he had a net loss from his rental activity.