In November 2016, when his wife died, Thomas Dean left the Law firm he was working for and started his own practice so he could have more time to spend with his four children (ages 14, 16, 19, and 24 years old). The three younger children live at home with their father. Danny, Thomas Dean's 19-year-old son, graduated from high school a year ago and is currently working at a local golf course. Danny earned $17,000 in the current year. Thomas Dean's oldest daughter, Laura, is married and lives in town with her husband, Chad. Laura graduated from college two years ago and now works for a local advertising agency.

What is Thomas Deans 2018 Tax Lability given the following

1. Thomas Dean rents a small office downtown where he meets with clients and conducts business. He keeps all his client files and business records in this office. In the evening, he uses a converted bedroom in his home as his office. The following expenses are allocated to his home office (by square feet):

Expense
Depreciation	$2,150
Taxes	$1,500	($3,600 for non-office portion of his home)
Utilities	$75

2. Thomas Dean owns a condominium downtown. He rented it out 270 days during the year. He also allowed Laura and her husband to stay in the home rent-free for 24 days while they were looking for a home. Fortunately, the condominium was not rented during the time they needed it. The following items of annual income and expense relate to the condominium:

Expense
Depreciation	$7.090
Taxes	$1,700
Rental income	$18,000
Mortgage interest	$3,150
Other expenses	$6,000

3. On April 6, Thomas Dean sold a parcel of land he had held for investment to a real estate development firm for $75,000. He purchased the land three years earlier from his brother for $70,000. His brother had originally purchased the land for $74,000.

4. On May 1,Thomas Dean purchased 1,000 shares in Genornics Ltd. for $10 per share. In December he was forced to sell all 1,000 shares at $8 per share to avoid a conflict of interest.

5. Thomas Dean reported the following items of income and expense from his consulting practice:

Consulting fees received	$185,000
Wages expense	$47,400
Rent expense	$20,000
Depreciation	$2,100
Other expenses	$17,000

Thomas Dean reported the following items of income and expense from his consulting practice:

Consulting fees received	$185,000
Wages expense	$47,400
Rent expense	$20,000
Depreciation	$2,100
Other expenses	$17,000