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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

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 $5,780. 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 $ 1,690
Interest on home mortgage 5,235
Operating expenses of home 845
Depreciation 1,654

Also, assume that, not counting the sole proprietorship, Ritas AGI is $61,800. 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 $15,450 in gross income. (Leave no answer blank. Enter zero if applicable.)

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

$

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