IDNLearn.com: Your one-stop platform for getting reliable answers to any question. Our community is ready to provide in-depth answers and practical solutions to any questions you may have.
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 $5,600. 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 $ 1,600 Interest on home mortgage 5,100 Operating expenses of home 800 Depreciation 1,600 Also, assume that, not counting the sole proprietorship, Rita's AGI is $60,000. 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 $15,000 in gross income. (Leave no answer blank. Enter zero if applicable.) a. What is Rita’s home office deduction for the current year?
We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.