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 $5,860. 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	$ 1,730
Interest on home mortgage	5,295
Operating expenses of home	865
Depreciation	1,678

Also, assume that, not counting the sole proprietorship, Rita's AGI is $62,600. 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 $15,650 in gross income.

a. What is Rita's home office deduction for the current year?