Assume Rita’s consulting business generated $15,000 in gross income.

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

b. What would Rita’s home office deduction for the current year be if her business generated $10,000 of gross income instead of $15,000? (Answer for both the actual expense method and the simplified method).

c. Given the original facts, what is Rita’s AGI for the year?

d. Given the original facts, what types and amounts of expenses will she carry over to next year?