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Required information [ The following information applies to the questions displayed below. ] Rita owns a sole proprietorship in which she works as a management
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
square feet where she meets with clients, prepares bills, and performs other workrelated tasks. Her business expenses,
other than home office expenses, total $ The following homerelated 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 $ Rita itemizes deductions, and her itemized
deduction for nonhome business taxes is less than $ by more than the real property taxes allocated to business
use of the home.
Assume Rita's consulting business generated $ in gross income for the current year. Further, assume Rita uses the
actual expense method for computing her home office expense deduction.
a What is Rita's home office deduction for the current year? b What is Rita's AGI for the year?
AGI c What types and amounts of expenses will she carry over to next year?
Note: Leave no answer blank. Enter zero if applicable.
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