David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other information follows:
Income from consulting business ……………………..$4,000
Consulting expenses other than home office ………… 1,500
Total costs relating to home:
Interest and taxes …………………………………… 6,500
Utilities ……………………………………………… 1,500
Maintenance and repairs ……………………………. 450
Depreciation (business part only) …………………..1,500
Calculate David’s AGI.