Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve and show worki mg Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her

please solve and show worki mg
image text in transcribed
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 \$6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. 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 $16,150 in gross income. Note: Leave no onswer blank, Enter zero if applicable. Required: o. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150 ? (Answer for both the actual expense method and the simplified method) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Complete this question by entering your answers in the tabs below. What is Rita's home office deduction for the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO 9001 2015 Audit Procedures

Authors: Ray Tricker

4th Edition

1138025895, 978-1138025899

More Books

Students also viewed these Accounting questions

Question

=+c. What is the probability that x is at least 7%?

Answered: 1 week ago