Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,680. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses.

Real property taxes $ 1,640
Interest on home mortgage 5,160
Operating expenses of home 820
Depreciation 1,624
Also, assume that, not counting the sole proprietorship, Rita's AGI is $60,800. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home.

Assume Rita's consulting business generated $15,200 in gross income.

Note: Leave no answer blank. Enter zero if applicable.

a. What is Rita's home office deduction for the current year?



Answer :

Other Questions