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. Real property taxes Interest on home mortgage Operating expenses of home Depreciation $ 1,830 5,445 915 1,738 Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. Assume Rita's consulting business generated $16,150 in gross income. (Leave no answer blank. Enter zero if applicable.)
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. Real property taxes Interest on home mortgage Operating expenses of home Depreciation $ 1,830 5,445 915 1,738 Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. Assume Rita's consulting business generated $16,150 in gross income. (Leave no answer blank. Enter zero if applicable.)
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 20MCQ
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Transcribed Image Text: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.
Real property taxes
Interest on home mortgage
Operating expenses of home
Depreciation
$ 1,830
5,445
915
1,738
Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600.
Assume Rita's consulting business generated $16,150 in gross income. (Leave no answer blank.
Enter zero if applicable.)
c. Given the original facts, what is Rita's AGI for the year?
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