1.`

Jason R. and Jenni L. Dane are married and live at 13071 Sterling Drive, Marquette, MI 49866. Jason is a self-employed insurance claims adjuster (business activity code 524290), and Jenni is the dietitian for the local school district. They choose to file a joint tax return each year.

Jason represents several national casualty insurance companies on a contract basis. He operates this business on the cash basis. He is paid a retainer and receives additional compensation if the claims he processes for the year exceed a specified number. As an independent contractor, he is responsible for whatever expenses he incurs. Jason works out of an office near his home. The office is located at 1202 Moose Road. He shares Suite 326 with a financial consultant, and operating expenses are divided equally between them. The suite has a common waiting room with a receptionist furnished and paid by the landlord. Jason paid his one- half share of the 2017 expenses as detailed below:

Office rent	$11,600
Utilities (includes telephone and fax)	4,300
Replacement of waiting room furniture on April 22	3,600
Renters insurance (covers personal liability, casualty, theft)	1,400
Office expense (supplies, postage)	740
New Toshiba copier on February 7	300
Waiting room coffee service (catered)	280
Waiting room magazine subscriptions	90

For his own business use, Jason purchased a $2,100 laptop computer on June 17 and a $1,200 Nikon camera on February 5. Except for his vehicle (see item 2 below), Jason uses the 179 write-off option whenever possible. Jason has no expenditures for which he is required to file Form 1099s.

2.

Jason R. and Jenni L. Dane are married and live at 13071 Sterling Drive, Marquette, MI 49866. Jason is a self-employed insurance claims adjuster (business activity code 524290), and Jenni is the dietitian for the local school district. They choose to file a joint tax return each year.

Jason represents several national casualty insurance companies on a contract basis. He operates this business on the cash basis. He is paid a retainer and receives additional compensation if the claims he processes for the year exceed a specified number. As an independent contractor, he is responsible for whatever expenses he incurs. Jason works out of an office near his home. The office is located at 1202 Moose Road. He shares Suite 326 with a financial consultant, and operating expenses are divided equally between them. The suite has a common waiting room with a receptionist furnished and paid by the landlord. Jason paid his one- half share of the 2017 expenses as detailed below:

Office rent	$11,600
Utilities (includes telephone and fax)	4,300
Replacement of waiting room furniture on April 22	3,600
Renters insurance (covers personal liability, casualty, theft)	1,400
Office expense (supplies, postage)	740
New Toshiba copier on February 7	300
Waiting room coffee service (catered)	280
Waiting room magazine subscriptions	90

For his own business use, Jason purchased a $2,100 laptop computer on June 17 and a $1,200 Nikon camera on February 5. Except for his vehicle (see item 2 below), Jason uses the 179 write-off option whenever possible. Jason has no expenditures for which he is required to file Form 1099s.

3.

Jason handles most claim applications locally, but on occasion, he must travel out of town. Expenses in connection with these business trips during 2017 were

$930 for lodging and $1,140 for meals. He also paid $610 for business dinners he had with several visiting executives of insurance companies with whom he does business. Jasons other business-related expenses for 2017 are listed below:

Contribution to H.R. 10 (Keogh) retirement plan	$8,000
Premiums on medical insurance covering self and family (spouse and children)	4,600
Premiums on disability insurance policy (pays for loss of income in the event Jason is disabled and cannot work)	2,400
State and local occupation fee	450
Birthday gift for receptionist ($25 box of Godiva chocolates plus $3 for gift wrap)	28

Prepare the 2017 and 2018 tax returm portion relating to this information