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 informationfollows:
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Income from consulting business
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$4,000
|
|
Consulting expenses other than home of?ce
|
1,500
|
|
Total costs relating to home:
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|
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Interest and taxes
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6,500
|
|
Utilities
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1,500
|
|
Maintenance and repairs
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450
|
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Depreciation (business part only)
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1,500
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Calculate David's AGI: