Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Alto, assume that, not counting the sole proprietorship. Rita's AGH is $63,200. Rita itemizes deductions, and her itemized deduction for mon home buiness taxes is less than $10,000 by more than the real property taxes allocated to business use of the home Assume Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) b. What would Rita's home office deduction be if her business generated $10,800 of gross income instead of $15,8007 (Answer for both the actual expense method and the simplified method) 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 $5,920. 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 Interest on hone mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that not counting the sole proprietorship, Rita's AGI is $63,200 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 Rita's consulting business generated $15,800 in gross income (Leave no answer blank. Enter zero if applicable.) c. Given the original facts, what is Rita's AGI for the year? 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AG is $63,200 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 Astume Rita's consulting business generated $15,800 in gross income (Leave no answer blank. Enter zero if applicable.) d. Given the original facts, what types and amounts of expenses will she carry over to next year? Ter Terpenes med over to not year Ter2 expenses carried over to year The expenses med over to next year 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5, 340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) a. What is Rita's home office deduction for the current year? Home of deduction 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) b. What would Rita's home office deduction be if her business generated $10,800 of gross Income instead of $15,800? (Answer for both the actual expense method and the simplified method.) Actual expense method Simplified method 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $1,760 5,340 880 1,696 Also, assume that not counting the sole proprietorship. Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) c. Given the original facts, what is Rita's AGI for the year? AG 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $1,760 5,340 889 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) 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 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Alto, assume that, not counting the sole proprietorship. Rita's AGH is $63,200. Rita itemizes deductions, and her itemized deduction for mon home buiness taxes is less than $10,000 by more than the real property taxes allocated to business use of the home Assume Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) b. What would Rita's home office deduction be if her business generated $10,800 of gross income instead of $15,8007 (Answer for both the actual expense method and the simplified method) 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 $5,920. 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 Interest on hone mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that not counting the sole proprietorship, Rita's AGI is $63,200 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 Rita's consulting business generated $15,800 in gross income (Leave no answer blank. Enter zero if applicable.) c. Given the original facts, what is Rita's AGI for the year? 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AG is $63,200 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 Astume Rita's consulting business generated $15,800 in gross income (Leave no answer blank. Enter zero if applicable.) d. Given the original facts, what types and amounts of expenses will she carry over to next year? Ter Terpenes med over to not year Ter2 expenses carried over to year The expenses med over to next year 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5, 340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) a. What is Rita's home office deduction for the current year? Home of deduction 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $ 1,760 5,340 880 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) b. What would Rita's home office deduction be if her business generated $10,800 of gross Income instead of $15,800? (Answer for both the actual expense method and the simplified method.) Actual expense method Simplified method 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $1,760 5,340 880 1,696 Also, assume that not counting the sole proprietorship. Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) c. Given the original facts, what is Rita's AGI for the year? AG 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 $5,920. 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 Interest on home mortgage Operating expenses of home Depreciation $1,760 5,340 889 1,696 Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,200. 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 Rita's consulting business generated $15,800 in gross income. (Leave no answer blank. Enter zero if applicable.) 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Markets And The Firm

Authors: Piet Sercu, Raman Uppal

1st Edition

1861523548, 978-1861523549

More Books

Students also viewed these Finance questions