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 $5,975. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses.

Real Property Taxes	$1675
Interest on Home Morgtage	5225
Operating Expenses of Home	675
Depreciation	1700

Also, assume that not counting the sole proprietorship, Rita's AGI is $61,250. 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 Ritas consulting business generated $13,425 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 Ritas home office deduction for the current year?

b. What is Ritas AGI for the year?

c. Assuming the original facts, what types and amounts of expenses will she carry over to next year? (Enter zero if applicable.)

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