Appendix F: Willow WadeInformation
For your sixth client, your boss wants you to prepare Form 1040,Schedule C, and SE for Willow Wade.
Facts:
Willow Wade is a successful, 30-year old attorney. She has a law office near the circuit court building on Smith Courtand a home office. The home office is one of the bedrooms in her4-bedroom home in Aiea, HI. She is on the cashmethod.
Taxpayer | Willow Wade 41-123 Kaneu Drive Aiea, HI 96701 |
Social Security No: | 255-10-0000 |
Gross Income | $500,000 |
Secretary salary (?) | 25,000 |
Rent expense | 10,000 |
Supplies | 500 |
Postage | 200 |
Utilities (for Smith Ct. office) | 1,000 |
Court fees (are these fees she is paying for clientswho are filing cases? Would they be receivables on herbooks?) I don’t know. I am sure there might beunreimbursed court fees that attorneys might have to pay? | 1,000 |
Insurance (prepaid or expense?) – Is that important since she isa cash based tax payer? Wouldn’t that mean she paid$2000 in cash for the year…either the beginning or the end..somaybe prepaid, maybe not? | 2,000 |
Total Square Footage of Willow’s home | 3,000 |
Square footage of Willow;s home office | 300 square feet |
Home expenses for the year (utility expenses (gas, electric,etc.), depreciation, and property taxes) | $8,000 |
Mileage (4,000 to and from court, 2,000 to and from her home towork and back, 4,000 was personal driving? "just drivingaround") | 10,000 miles |
New car purchased last year cost | $25,000 |
Prepare Form 1040, Schedule C, and SE for her self-employmenttaxes.
