David R$.$ and Ella M$.$ Cole $($ages $39$ and $38,$ respectively$)$ are husband and wife who live at $1820$ Elk Avenue, Denver, CO $80202.$ David is a self$-$employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David earned consulting fees of $$145,000$ in $2021.$ He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella$$s employer but have chosen not to participate in its $401($k$)$ retirement plan. David$$s employment$-$related expenses for $2021$ are summarized below. Airfare $$8,800$ Lodging $4,835$ Meals from restaurants $($during travel status$)2,400$ Entertainment $3,600$ Ground transportation $($e$.$g$.,$ limos$,$ rental cars, and taxis$)800$ Business gifts $900$ Office supplies $($includes postage, overnight delivery, and copying$)1,500$ The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $$50$ gift certificates to a national restaurant. These were sent by David during the Christmas holidays to $18$ of his major clients. In addition, David drove his $2019$ Ford Expedition $11,000$ miles for business and $3,000$ for personal use during $2021.$ He purchased the Expedition on August $15,2018,$ and has always used the automatic $($standard$)$ mileage method for tax purposes. Parking and tolls relating to business use total $$340$ in $2021.$ When the Coles purchased their present residence in April $2018,$ they devoted $450$ of the $3,000$ square feet of living space to an office for David. The property cost $$440,000($$$40,000$ of which is attributable to the land$)$ and has since appreciated in value. Expenses relating to the residence in $2021($except for mortgage interest and property taxes; see below$)$ are as follows: Insurance $$2,600$ Repairs and maintenance $900$ Utilities $4,700$ Painting office area; area rugs and plants $($in the office$)1,800$ In terms of depreciation, the Coles use the MACRS percentage tables applicable to $39-$year nonresidential real property. As to depreciable property $($e$.$g$.,$ office furniture$),$ David tries to avoid capitalization and uses whatever method provides the fastest write$-$off for tax purposes. Ella works at a variety of offices as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy $($e$.$g$.,$ prior to the beginning of the school year$).$ Besides her transportation, she must provide and maintain her own uniforms. Her expenses for $2021$ appear below. Uniforms $$690$ State and city occupational licenses $380$ Professional journals and membership dues in the American Dental Hygiene Association $340$ Correspondence study course $($taken online$)$ dealing with teeth whitening procedures $420$ Ella$$s salary for the year is $$42,000,$ and her Form W$2$ for the year shows income tax withholdings of $$4,000($Federal$)$ and $$1,000($state$)$ and the proper amount of Social Security and Medicare taxes. Besides the items already mentioned, the Coles had the following receipts during $2021.$ For several years, the Coles$$ household has included David$$s divorced mother, Sarah, who has been claimed as their dependent. In late December $2020,$ Sarah unexpectedly died of a heart attack in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account $($with David as the designated beneficiary of each$).$ In $2020,$ the Coles purchased two ATVs for $$14,000.$ After several near mishaps, they decided that the sport was too dangerous. In $2021,$ they sold the ATVs to their neighbor. Additional expenditures for $2021$ include: In $2021,$ the Coles made quarterly estimated tax payments of $$6,000($Federal$)$ and $$500($state$)$ for a total of $$24,000($Federal$)$ and $$2,000($state$).$ Relevant Social Security numbers are: David Cole $123-45-6788$ Ella Cole $123-45-6787$ The Coles have never owned or used any virtual currency. The Coles received the appropriate coronoavirus recovery rebates $($economic impact payments$)$; related questions in ProConnect Tax should be ignored. They do not want to contribute to the Presidential Election Campaign Fund. Also, the Coles want any overpayment of tax refunded to them and not applied toward next year$$s tax liability. David will have a self$-$employment tax liability I need $1040$ form Schedule SE and $8995$