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Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes

Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes up 5% of all Bettys home and is used exclusively for her job. Smart Systems reimburses all of Bettys direct costs of maintaining the home office. Betty also has the following expenses associated with her home:

Expense

Amount

Real property taxes on residence

$3,500

Interest expense on residence

5,000

Operating expenses on residence

1,800

Depreciation on residence (based on 5% home office use)

150

Considering these facts, how much may Betty deduct from AGI on her tax return assuming she elects to itemize deductions?

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