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Jason R. and Jenni L. Dane are married and live at 13071 Sterling Drive, Marquette, MI 49866. Jason is a self-employed insurance claims adjuster (business activity code 524290), and Jenni is the dietitian for the local school district. They choose to file a joint tax return each year.

Jason represents several national casualty insurance companies on a contract basis. He operates this business on the cash basis. He is paid a retainer and receives additional compensation if the claims he processes for the year exceed a specified number. As an independent contractor, he is responsible for whatever expenses he incurs. Jason works out of an office near his home. The office is located at 1202 Moose Road. He shares Suite 326 with a financial consultant, and operating expenses are divided equally between them. The suite has a common waiting room with a receptionist furnished and paid by the landlord. Jason paid his one- half share of the 2017 expenses as detailed below:

Office rent $11,600

Utilities (includes telephone and fax) 4,300

Replacement of waiting room furniture on April 22: 3,600

Renters insurance (covers personal liability, casualty, theft) 1,400

Office expense (supplies, postage) 740

New Toshiba copier on February 7: 300

Waiting room coffee service (catered) 280

Waiting room magazine subscriptions 90

For his own business use, Jason purchased a $2,100 laptop computer on June 17 and a $1,200 Nikon camera on February 5. Except for his vehicle (see item 2 below), Jason uses the 179 write-off option whenever possible. Jason has no expenditures for which he is required to file Form 1099s.

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