Required information[The following information applies to the questions displayed below.]Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses,other than home office expenses, total $5,975. The following home-related expenses have been allocated to her homeoffice under the actual expense method for calculating home office expenses.Real property taxesInterest on home mortgageOperating expenses of homeDepreciation$1,6755,2256751,700Also, assume that not counting the sole proprietorship, Rita's AGI is $61,250.Assume Rita's consulting business generated $13,425 in gross income for the current year. Further, assume Rita uses theactual expense method for computing her home office expense deduction.a. What is Rita's home office deduction for the current year?Home office deduction b. What is Rita's AGI for the year?AGI

It is given that Rita uses the actual expense method for computing her home office expense…

Answered: a. What is Rita's home office deduction…

Business

Accounting

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

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 53P

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