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Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home ( 5 0 0 square
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.
Note: Leave no answer blank. Enter zero if applicable.
b What would Rita's home office deduction be if her business generated $ of gross income instead of $Answer for
both the actual expense method and the simplified method.
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