Volunteer:

What kind of business do you have and were you the sole owner?

Jason:

I install air conditioners and yes, I own the business myself. No partners or employees.

Volunteer:

Do you have a record of your business income and expenses for last year?

Jason:

Yeah, I've got a separate checking account for my business. I had a pretty decent first year actually.

Volunteer:

Do you use the cash method of accounting?

Jason:

Yes. I have a printout of my year-end summary here.

Volunteer:

And what were your expenses?

Jason:

Well, I do the installations myself; I spend a lot of money on parts, tools that last less than a year, and equipment repairs. My expenses for the year were $2,212.

Volunteer:

Do you keep any parts in inventory?

Jason:

No, I purchase the parts wholesale when an order is placed with me.

Volunteer:

And you say you had a good year? In other words, did you make a profit?

Jason:

That's correct.

Volunteer:

Do you plan on deducting expenses for the business use of your home?

Jason:

No, I don't.

Volunteer:

Okay, and how much business income did you have?

Jason:

My receipts totaled $30,762.

[On page 3 of the intake and interview sheet, indicate Jason's responses to these questions.]