4. Mary is a licensed attorney who works part time on a consulting basis. Mary collected $ 75,000 in consulting fees during 2015. Mary does her work at the clients premises or in her office at home (see item 6 below). The federal business code is 541100. Her business expenses for 2015 are as follows:
Supplies $5,000
Library materials 5,000
Expert fees 10,000
Professional license fee 400
Subscriptions to professional journals 350
Dues to professional organizations 500
Attorney Subcontractor fees paid (1099s issued to others) 10,000
In addition, Mary drove the family Acura (purchase on June 7, 2013) 1,050 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2015, Mary drove the car a total of 8,200 miles. The car was driven 12,000 miles in 2013 and 8,000 miles in 2014: 75% for personal use and 25% for business trips. She paid $100 in parking fees and tolls.
HINT: Vehicle expenses (both actual and standard mileage) needs to be entered as a fixed asset and then on the vehicle tab within the specific car fixed asset. Make sure to specify which form the vehicle expenses should report to (either schedule C or 2106). Applies to both items 3 and 4.
