[The following information applies to the questions displayed below.]

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 $5,640. 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	$ 1,620
Interest on home mortgage	5,130
Operating expenses of home	810
Depreciation	1,612

Also, assume that, not counting the sole proprietorship, Ritas AGI is $60,400. 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 $15,100 in gross income. (Leave no answer blank. Enter zero if applicable.)

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

[The following information applies to the questions displayed below.]

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 $5,640. 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	$ 1,620
Interest on home mortgage	5,130
Operating expenses of home	810
Depreciation	1,612

Also, assume that, not counting the sole proprietorship, Ritas AGI is $60,400. 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 $15,100 in gross income. (Leave no answer blank. Enter zero if applicable.)

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

[The following information applies to the questions displayed below.]

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 $5,640. 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	$ 1,620
Interest on home mortgage	5,130
Operating expenses of home	810
Depreciation	1,612

Also, assume that, not counting the sole proprietorship, Ritas AGI is $60,400. 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 $15,100 in gross income. (Leave no answer blank. Enter zero if applicable.)

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

b. What would Ritas home office deduction be if her business generated $10,100 of gross income instead of $15,100? (Answer for both the actual expense method and the simplified method.)

c. Given the original facts, what is Ritas AGI for the year?

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