Question
Appendix F: Willow Wade Information For your sixth client, your boss wants you to prepare Form 1040 Facts: Willow Wade is a successful, 30-year old
Appendix F: Willow Wade Information
For your sixth client, your boss wants you to prepare Form 1040
Facts:
Willow Wade is a successful, 30-year old attorney. She has a law office near the circuit court building on Smith Court and a home office. The home office is one of the bedrooms in her 4-bedroom home in Aiea, HI. She is on the cash method.
Taxpayer | Willow Wade 41-123 Kaneu Drive Aiea, HI 96701 |
Social Security No: | 255-10-0000 |
Gross Income | $500,000 |
Secretary salary (?) | 25,000 |
Rent expense | 10,000 |
Supplies | 500 |
Postage | 200 |
Utilities (for Smith Ct. office) | 1,000 |
Court fees (are these fees she is paying for clients who are filing cases? Would they be receivables on her books?) I dont know. I am sure there might be unreimbursed court fees that attorneys might have to pay? | 1,000 |
Insurance (prepaid or expense?) Is that important since she is a cash based tax payer? Wouldnt that mean she paid $2000 in cash for the yeareither the beginning or the end..so maybe prepaid, maybe not? | 2,000 |
Total Square Footage of Willows home | 3,000 |
Square footage of Willow;s home office | 300 square feet |
Home expenses for the year (utility expenses (gas, electric, etc.), depreciation, and property taxes) | $8,000 |
Mileage (4,000 to and from court, 2,000 to and from her home to work and back, 4,000 was personal driving? "just driving around") | 10,000 miles |
New car purchased last year cost | $25,000 |
Prepare Form 1040
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