5 method for calculating home office expenses $1,830 5,445 915 1,738 Real property taxes Interest on...

Transcribed Image Text:

5 method for calculating home office expenses $1,830 5,445 915 1,738 Real property taxes Interest on hone mortgage Operating expenses of home Depreciation Also, assume that; not counting the sole proprietorship, Rita's AGI is $64,600 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 $16,150 in gross income Note: Leave no answer blank. Enter zero if applicable. Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11150 of gross income instead of $16,150? (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? Complete this question by entering your answers in the tabs below. Required a Required b Required c Required d What is Rita's home office deduction for the current year? Home office deduction Requi Required b> Check my work Problem 6-45 (LO 6-2) (Algo) 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 $6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Interest on home mortgage Real property taxes look Operating expenses of home Depreciation $ 1,830 5,445 Print D erences 915 1,738 Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. 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 $16,150 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (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? 5 method for calculating home office expenses $1,830 5,445 915 1,738 Real property taxes Interest on hone mortgage Operating expenses of home Depreciation Also, assume that; not counting the sole proprietorship, Rita's AGI is $64,600 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 $16,150 in gross income Note: Leave no answer blank. Enter zero if applicable. Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11150 of gross income instead of $16,150? (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? Complete this question by entering your answers in the tabs below. Required a Required b Required c Required d What is Rita's home office deduction for the current year? Home office deduction Requi Required b> Check my work Problem 6-45 (LO 6-2) (Algo) 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 $6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Interest on home mortgage Real property taxes look Operating expenses of home Depreciation $ 1,830 5,445 Print D erences 915 1,738 Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. 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 $16,150 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (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?