Also, assume that, not counting the sole proprietorship, Rita’s AGI is $62,000. 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 $15,500 in gross income. What is Rita’s home office deduction for the current year? What would Rita’s home office deduction be if her business generated $10,500 of gross income instead of $15,500? for both the actual expense method and the simplified method c. Given the original facts, what is Rita’s AGI for the year?
R
ita 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 $5,800. 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 | $ | 1,700 |
| Interest on home mortgage | 5,250 | |
| Operating expenses of home | 850 | |
| 1,660 | ||
Also, assume that, not counting the sole proprietorship, Rita’s AGI is $62,000. 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 $15,500 in gross income.
- What is Rita’s home office deduction for the current year?
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What would Rita’s home office deduction be if her business generated $10,500 of gross income instead of $15,500? for both the actual expense method and the simplified method
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c. Given the original facts, what is Rita’s AGI for the year?
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