Required information[The following information applies to the questions displayed below.]Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses,other than home office expenses, total $5,600. The following home-related expenses have been allocated to her homeoffice under the actual expense method for calculating home office expenses.Real property taxesInterest on home mortgageOperating expenses of homeDepreciation$ 1,6005,1008001,600Also, assume that, not counting the sole proprietorship, Rita's AGI is $60,000. Rita itemizes deductions, and her itemizeddeduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to businessuse of the home.Assume Rita's consulting business generated $15,000 in gross income.Note: Leave no answer blank. Enter zero if applicable.Home office deductiona. What is Rita's home office deduction for the current year?

Deductions are tools used by people or businesses to identify and record the many acceptable costs…

Rita owns a sole proprietorship in which she works as a management consultant. She maintains square feet) where she meets with clients, prepares bills, and performs other work-related tasks. other than home office expenses, total $5,600. The following home-related expenses have beer office under the actual expense method for calculating home office expenses.

Rita owns a sole proprietorship in which she works as a management consultant. She maintains square feet) where she meets with clients, prepares bills, and performs other work-related tasks. other than home office expenses, total $5,600. The following home-related expenses have beer office under the actual expense method for calculating home office expenses.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 21CE

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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 $5,720. 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 $ 1,660 Interest on home mortgage 5,190 Operating expenses of home 830 Depreciation 1,636 Also, assume that, not counting the sole proprietorship, Rita's AGI is $61,200. 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 $15,300 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: What is Rita's home office deduction for the current…
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an officein 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 followinghome-related expenses have been allocated to her home office under the actual expense method forcalculating home office expenses. Real property taxes $ 1,600Interest on home mortgage 5,100Operating expenses of home 800Depreciation 1,600 Also, assume that, not counting the sole proprietorship, Rita 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 realproperty taxes allocated to business use of the home.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 be if her business generated…
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…
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 $13,000 in gross income for the current year. Further, assume Rita uses the actual expense method for computing her home office expense…
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 $13,000 in gross income for the current year. Further, assume Rita uses the actual expense method for computing her home office expense…
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