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 $5,620. 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	$ 1,610
Interest on home mortgage	5,115
Operating expenses of home	805
Depreciation	1,606

Also, assume that, not counting the sole proprietorship, Ritas AGI is $60,200. 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 $15,050 in gross income. (Leave no answer blank. Enter zero if applicable.)

b. What would Ritas home office deduction be if her business generated $10,050 of gross income instead of $15,050? (Answer for both the actual expense method and the simplified method.)

Actual expense method
Simplified method