Question
Bebe Jackson is a successful, 30-year old attorney, social security no. 255-10-0000. She has a law office on Smith Court, but also has an office
Bebe Jackson is a successful, 30-year old attorney, social security no. 255-10-0000. She has a law office on Smith Court, but also has an office in her home, which is a 4-bedroom colonial in Slidell, Louisiana. Her house is 2,400 square feet. One room, a den, 300 square feet, is used for the law office. Her total utility expenses, depreciation, including gas, electric, etc. and also property taxes, total $8,000/year. She is on the cash method. For 20XX she had $150,000 gross income, and the following expenses, (apart from any allowable home office expenses, which would be added to the list below to the extent allowable): Secretary 25,000 Rent 10,000 Supplies 500 Postage 200 Utilities 1000 (for Smith Ct. office) Court fees 1,000 Insurance 2,000 Auto expenses (She drove her car 10,000 miles, 4,000 to and from court. 2,000 to and from her home to work and back. The other 4,000 was "just driving around". The car cost $25,000, bought new last year. Prepare a 1040 Schedule C for Bebe. Also a Schedule SE for her self-employment taxes.
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