Question
[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
[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 $5,840. 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 | $ 1,720 |
---|---|
Interest on home mortgage | 5,280 |
Operating expenses of home | 860 |
Depreciation | 1,672 |
Also, assume that, not counting the sole proprietorship, Ritas AGI is $62,400. 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 $15,600 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?
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