Peter is a self-employed attorney. He gives the following information about his business to his CPA for use in preparing his 2019 tax return: Income Fees from law practice $153,000 Expenses Malpractice insurance $8,000 Office rent 12,000 Office supplies 5,600 Travel expense 2,000 Meals 3,800 Entertainment 4,000 Paralegal wages 25,500 Country club dues (Peter uses the club for business entertainment) 2,500 Peter also drove his car 5,850 miles for business and used the standard mileage method for computing transportation costs. How much will Peter show on his Schedule C for 2019 for: a. Income b. Tax deductible expenses c. Taxable income
Peter is a self-employed attorney. He gives the following information about his business to his CPA for use in preparing his 2019 tax return: Income Fees from law practice $153,000 Expenses Malpractice insurance $8,000 Office rent 12,000 Office supplies 5,600 Travel expense 2,000 Meals 3,800 Entertainment 4,000 Paralegal wages 25,500 Country club dues (Peter uses the club for business entertainment) 2,500 Peter also drove his car 5,850 miles for business and used the standard mileage method for computing transportation costs. How much will Peter show on his Schedule C for 2019 for: a. Income b. Tax deductible expenses c. Taxable income
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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Question
. Peter is a self-employed attorney. He gives the following information about his business to his CPA for use in preparing his 2019 tax return:
|
Income |
|
|
Fees from law practice |
$153,000 |
|
|
|
|
Expenses |
|
|
Malpractice insurance |
$8,000 |
|
Office rent |
12,000 |
|
Office supplies |
5,600 |
|
Travel expense |
2,000 |
|
Meals |
3,800 |
|
Entertainment |
4,000 |
|
Paralegal wages |
25,500 |
|
Country club dues (Peter uses the club for business entertainment) |
2,500 |
Peter also drove his car 5,850 miles for business and used the standard mileage method for computing transportation costs. How much will Peter show on his Schedule C for 2019 for:
|
a. |
Income |
|
|
|
|
b. |
Tax deductible expenses |
|
|
|
|
c. |
Taxable income |
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT