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 $6,040. 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	$ 1,820
Interest on home mortgage	5,430
Operating expenses of home	910
Depreciation	1,732

Also, assume that, not counting the sole proprietorship, Ritas AGI is $64,400. 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 $16,100 in gross income. (Leave no answer blank. Enter zero if applicable.)

a. What is Ritas home office deduction for the current year?

Home Office deduction : _____________

c. Given the original facts, what is Ritas AGI for the year?

AGI : _______________

d. Given the original facts, what types and amounts of expenses will she carry over to next year?

Tier 1 expenses carried over to next year __________

Tier 2 expenses carried over to next year __________

Tier 3 expenses carried over to next year __________