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Complete Tax return Forms for 2015: George Large (SSN XXXXXXXXXXand his wife Marge Large XXXXXXXXXXlive at 2000 Lakeview Drive, Cleveland, OH 49001 and want to prepare their 2015 income tax return...

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Complete Tax return Forms for 2015:

George Large (SSN XXXXXXXXXXand his wife Marge Large XXXXXXXXXXlive at 2000 Lakeview Drive, Cleveland, OH 49001 and want to prepare their 2015 income tax return based on the information below:
George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus and expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return excess reimbursement; none of the reimbursement was related to meals and entertainment.
Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of $24,000 miles during the year and placed car in service on June 1, 2013. His log indicates that $18,000 miles were for sale calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard rate method. Assume his business miles were driven evenly during the year
George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss business before, during and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five day trip to the Toyboat headquarters in Musty, OH.
He was so well prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip:
Airfare $200
Lodging $85/day
Meals $50/day
Taxicabs $20/day
Marge Large is self-employed. She repair's rubber toy boats in the basement of their home, which is 25% of the house's square footage. The business code is XXXXXXXXXXShe had the following income and expenses.
Income from rubber toy boat repairs $15,000
Cost of supplies $ 5,000
Contract labor $ 3,500
Long-distance phone calls - business $ 500
The Large's home cost a total of $150,000 of which the cost of land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39 year recovery period. The Larges incurred the following total other expenses:
Utility bills for the house $2,000
Real estate taxes $2,500
Mortgage interest $4,500
Cash charitable contributions $3,500
Required:
Prepare Federal Form 1040, Schedule A , Schedule C and Schedule SE for form 1040 , and Federal Form 2106 and Federal Form 8829 for the income tax year XXXXXXXXXXAssume that no estimated taxes were paid by the Larges.)

CHECK ANSWERS WITH CHECK FIGURES:

1040 Individual Tax Return Check Figures:

1040

Page 1 Line 37 – AGI - $82,711

Page 2 Line 43 – Taxable Income - $57,125

Schedule A

Line 29 – Total Itemized Deductions - $ 17,586

Schedule SE

Line 5 – Self Employment Tax - $412

Form 2106

Line 6 – Total Expenses – Column A - $10,865

Column B - $5,650

Answered Same Day Dec 27, 2021

Solution

Robert answered on Dec 27 2021
123 Votes
2015 Form 1040 (Schedule C)
SCHEDULE C
(Form 1040) 2015
Profit or Loss From Business
(Sole Proprietorship)
Department of the Treasury
Internal Revenue Service (99)
▶ Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.
▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.
OMB No. 1545-0074
Attachment
Sequence No. 09
Name of proprietor Social security number (SSN)
A Principal business or profession, including product or service (see instructions) B Enter code from instructions

C Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.)
E Business address (including suite or room no.) ▶
City, town or post office, state, and ZIP code
F Accounting method: (1) Cash (2) Accrual (3) Other (specify) ▶
G Did you “materially participate” in the operation of this business during 2015? If “No,” see instructions for limit on losses . Yes No
H If you started or acquired this business during 2015, check here . . . . . . . . . . . . . . . . . ▶
I Did you make any payments in 2015 that would require you to file Form(s) 1099? (see instructions) . . . . . . . . Yes No
J If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . Yes No
Part I Income
1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . ▶ 1
2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4
5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5
6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6
7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . ▶ 7
Part II Expenses. Enter expenses for business use of your home only on line 30.
8 Advertising . . . . . 8
9

Car and truck expenses (see
instructions) . . . . . 9
10 Commissions and fees . 10
11 Contract labor (see instructions) 11
12 Depletion . . . . . 12
13



Depreciation and section 179
expense deduction (not
included in Part III) (see
instructions) . . . . . 13
14

Employee benefit programs
(other than on line 19) . . 14
15 Insurance (other than health) 15
16 Interest:
a Mortgage (paid to banks, etc.) 16a
Other . . . . . . 16
17 Legal and professional services 17
18 Office expense (see instructions) 18
19 Pension and profit-sharing plans . 19
20 Rent or lease (see instructions):
a Vehicles, machinery, and equipment 20a
Other business property . . . 20b
21 Repairs and maintenance . . . 21
22 Supplies (not included in Part III) . 22
23 Taxes and licenses . . . . . 23
24 Travel, meals, and entertainment:
a Travel . . . . . . . . . 24a


Deductible meals and
entertainment (see instructions) . 24b
25 Utilities . . . . . . . . 25
26 Wages (less employment credits) . 26
27 a Other expenses (from line 48) . . 27a
Reserved for future use . . . 27
28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . ▶ 28
29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29
30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business: . Use the Simplified
Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30
31 Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
} 31
32 If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and
on Schedule SE, line 2. (If you checked the box on line 1,...
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