Question
DeeDee Jackson is a successful young attorney. Her information is as follows: Facts: Taxpayer: DeeDee Jackson 123 Dogwood Ave. Cincinnati, Ohio 44000 Social Security No.
DeeDee Jackson is a successful young attorney. Her information is as follows: Facts:
Taxpayer: DeeDee Jackson
123 Dogwood Ave.
Cincinnati, Ohio 44000
Social Security No. 666-77-8888
Date of Birth: April 22, 1995
DeeDee has a law office at 123 Juniper Court, Cincinnati, Ohio 44444. She uses the cash basis method of accounting. Last year DeeDee had $200,000 gross income, and the following expenses for the Juniper Court office.
Expense Account: Expense Amount:
Secretary $35,000.00
Rent 10,000.00
Supplies 500.00
Postage 200.00
Utilities 1,000.00
Court fees 1,000.00
Insurance 2,000.00
Auto expenses: DeeDee drove her car 10,000 miles, 4,000 miles to and from court. 2,000 miles to and from her home to her office and back. The other 4,000 miles were for other personal driving. The car cost $25,000 new, which she bought July 1st the year before last year. It was a Ford Fusion. She uses the mileage method for car expense deductions.
Prepare Form 1040, Schedule C, Schedule SE and Form 8995 for DeeDee.
Step by Step Solution
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Step: 1
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