Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 9 6,325 20 Rent or lease see instructions): 10 Commissions and fees 10 a Vehicles, machinery, and equipment. 20a 11 Contract labor (see instructions) 11 b Other business property .. 20b 12 Depletion ... 12 21 Repairs and maintenance .. 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 1,500 expense deduction (not included 23 Taxes and licenses 23 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel 24a (other than on line 19)... 14 b Deductible meals (see 15 Insurance (other than health).... 15 instructions) 24b 2,400 16 Interest (see instr.): 25 Utilities 25 a Mortgage (paid to banks, etc.)... 16a 26 Wages (less employment credits) 26 b Other 16b 27a Other expenses (from line 48) 27a 790 17 Legal and professional services ... 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a ...... 28 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 2020. 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 2020 are summarized below. Airfare $8,800 Lodging 4,615 Meals (during travel status) 4,800 Entertainment 3,600 Ground transportation (e.g., limos, rental cars, and taxis) 800 Business gifts 900 Office supplies (includes postage, overnight delivery, and copying) 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. 1,500 In addition, David drove his 2018 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2020. He purchased the Expedition on August 15, 2017; David always has used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2020. When the Coles purchased their present residence in April 2017, 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 2020 (except for mortgage interest and property taxes; see below) are reported as follows: When the Coles purchased their present residence in April 2017, 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 2020 (except for mortgage interest and property taxes; see below) are reported as follows: Insurance $2,600 Repairs and maintenance 900 Utilities 4,700 Painting office area; area rugs and plants (in the office)* 1,800 *Treat as a direct office in home expense. 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. Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 9 6,325 20 Rent or lease see instructions): 10 Commissions and fees 10 a Vehicles, machinery, and equipment. 20a 11 Contract labor (see instructions) 11 b Other business property .. 20b 12 Depletion ... 12 21 Repairs and maintenance .. 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 1,500 expense deduction (not included 23 Taxes and licenses 23 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel 24a (other than on line 19)... 14 b Deductible meals (see 15 Insurance (other than health).... 15 instructions) 24b 2,400 16 Interest (see instr.): 25 Utilities 25 a Mortgage (paid to banks, etc.)... 16a 26 Wages (less employment credits) 26 b Other 16b 27a Other expenses (from line 48) 27a 790 17 Legal and professional services ... 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a ...... 28 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 2020. 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 2020 are summarized below. Airfare $8,800 Lodging 4,615 Meals (during travel status) 4,800 Entertainment 3,600 Ground transportation (e.g., limos, rental cars, and taxis) 800 Business gifts 900 Office supplies (includes postage, overnight delivery, and copying) 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. 1,500 In addition, David drove his 2018 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2020. He purchased the Expedition on August 15, 2017; David always has used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2020. When the Coles purchased their present residence in April 2017, 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 2020 (except for mortgage interest and property taxes; see below) are reported as follows: When the Coles purchased their present residence in April 2017, 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 2020 (except for mortgage interest and property taxes; see below) are reported as follows: Insurance $2,600 Repairs and maintenance 900 Utilities 4,700 Painting office area; area rugs and plants (in the office)* 1,800 *Treat as a direct office in home expense. 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