Peter Is a Self-Employed Attorney Peter Also Drove His Car 5,580 Miles for Business and His

question 65

Essay

Peter is a self-employed attorney.He gives the following information about his business to his CPA for use in preparing his 2018 tax return: $\begin{array}{c}\begin{array}{lll}\text {Income}\\\text {Fees from law practice}\\\\\underline{\text {Expenses}}\\\text {Malpractice insurance}\\\text {Office rent}\\\text {Office supplies}\\\text {Travel expense}\\\text {Meals}\\\text {Entertainment}\\\text {Paral egal wages}\\\text {Country club dues (Peter uses the club for business entertainment)}\end{array}\begin{array}{lll}\\\$153,000\\\\\\\$8,000\\12,000\\5,600\\2,000\\3,800\\4,000\\25,500\\2,500\end{array}\end{array}$
Peter also drove his car 5,580 miles for business and used the standard mileage method for computing transportation costs.How much will Peter show on his Schedule C for 2018 for:
a.Income
b.Tax deductible expenses
c.Taxable income

---

Definitions:

Foreign Imports

Goods or services brought into a country from abroad for sale.

Foreign Currencies

The currencies of other countries that are used in international transactions or are sought as investments.

Swiss Franc Appreciates

Describes the increase in value of the Swiss Franc relative to other currencies.

Swiss Franc

The currency of Switzerland, known for its strength and stability, symbolized as CHF.