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 $5,720. 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	$	1,660
Interest on home mortgage		5,190
Operating expenses of home		830
Depreciation		1,636

Also, assume that, not counting the sole proprietorship, Ritas AGI is $61,200.

Assume Ritas consulting business generated $15,300 in gross income. (Leave no answer blank. Enter zero if applicable.)

Problem 14-64 Part b

b. What would Ritas home office deduction be if her business generated $10,300 of gross income instead of $15,300? (Answer for both the actual expense method and the simplified method.)

I know the simplified method is 1,500