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Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients,

Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. The home office is 300 square feet, and the entire house is 4,500 square feet. Brooke incurred the following home-related expenses during the year. Brooke itemizes her deductions, and her itemized deduction for nonhome business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Unless indicated otherwise, assume Brooke uses the actual expense method to compute home office expenses.
Real property taxes $ 3,630
Interest on home mortgage 14,100
Operating expenses of home 5,100
Depreciation 12,300
Repairs to home theater room 1,010
Required:
What amount of each of these expenses is allocated to the home office?
What are the total amounts of tier 1, tier 2, and tier 3 expenses, respectively, allocated to the home office?
If Brooke reported $2,020 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction, and what home office expenses, if any, would she carry over to next year?
Assume that Brooke uses the simplified method for computing home office expenses. If Brooke reported $2,020 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction, and what home office expenses, if any, would she carry over to next year?

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