Question

Prepare an individual income tax return. Complete problem 9-72 in your textbook. All applicable tax forms are required to be submitted. Utilize the attached "Tax Return 2018 Forms" document to assist you with this project.

• Form 1040
• Schedule 1, Form 1040
• Schedule 4, Form 1040
• Schedule C, Form 1040
• Schedule SE, Form 1040

1:9-72 George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 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 an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and enter- tainment. 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, car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. 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 some 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, Ohio. 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 $ 50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The busi- ness code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies 5,000 Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes Mortgage interest 4,500 Cash charitable contributions 3,500 2,500 Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2017 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges.)

Disregard the last part (Prepare Form 1040, Schedules A,C, and SE for forms 1040, and Form 2016 for 2018 year) those forms are not needed only the ones for 2018 that I listed before the image.

Answer 1

prepare from 1040 to disclose Income and respective Tax
		FORM 1040
		Amount ($)
Salary Received		80,000
Business Income- Wn1)		2,789
Total Income		82,789
Less - Itemized wise Deduction-Wn2		21,405
Total Income		61,384
Standard deduction		11,900
Total Taxable Income		49,484
tax
From 0-$17400	10%	1,740
From $17400-$70700	15%	4,813
Total Tax Liability		6,553
Schedule A
wn2
Real Estate Tax		2,500
Interest on Mortgage		4,500
Gifts to Charity		3,500
Unreimbursed Job Expeses(FORM 2106)		10,905
Total Itemized wise Deduction		21,405
wn1
Income from rubbery toy boat		15,000
Less cost
Cost of suppies	5000
Business phone call	3500
Cost of suppies	500
Total		9000
Total Business Income		6,000
Less- FORM 8829 Expeses		3211
Business Income-		2,789
FORM 2106
Car expenses	9990
Travelling Expense	665
Meal Expenses		5500
Total	10655	5500
Less Reimbursement		5000
Total	10655	500
Expenses Allowed	10655	250
Total		10905
FORM 8829
25% is used for Business
Income from buisness		6000
Mortgage Interest'		-1125
Reat estate tax		-625
Utility Bills		-500
Depreciation		-961
Total Business Income		2789
Calculate depreciation
Lesser of fair market value or adjusted cost		1,70,000
Less - value of Land		-20,000
Total		1,50,000
Basis of building		37,500
rate of depreciation		2.56%
		960