Monica is a cash basis, self-employed chef with her own restaurant. She didnt receive any 1099-Misc forms, but her total deposits in her business bank account for 2017 show $151,723. In addition to amounts collected from the restaurant, she also received a payment of $2,500 in cash on Dec 31, 2017 from a former catering client for a catering job she performed in late 2015. She did not receive a Form 1099 for this amount and she did not put this amount in her bank account.

Monica rents a space to have her restaurant, but Monica also uses a small room (100 sq ft) in her home (2,100 sq ft) to keep up with payroll, order supplies, and other administrative duties. She uses her SS number in lieu of an EIN. She incurred the following business related expenses during the year:

Restaurant Expenses (utilized at Restaurant)

Printing/copying $2,789

Legal fees $1,200

Supplies $3,617

Internet Service used 100% for her work $1,200

Postage/UPS $296

Premium for Insurance Policy (100% Business) $1,175

Worker Salaries (assume contract labor) $48,693

Utilities $12,159

Rent $12,000

Cost of Food Sold $25,476

Home Expenses

Lawn Care $1,200

Security $600

Utilities $3,623

During 2017 Monica purchased new appliances in March to use in her restaurant business. The cost of the equipment was $16,825. She wishes to maximize her depreciation deduction.