Question
George Large (SSN 000-11-1111) and his wife Marge Large (SNN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their
George Large (SSN 000-11-1111) and his wife Marge Large (SNN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2012 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He recieved a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbrsement 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 reimbirsement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insruance worth $7,200 per year. George drove his car a total of 24,000 miles during the yeear, and he placed the car in service on June 1, 2010. 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. 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 tales a costomer to every game, and they discuss some business before, during, adn after the games. George also takes 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 sent the other two days sighseeing. He had the following expenses during each of the fve days of his trip: Airfare $2,00 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house's square footage. The business code is 811490. She had the following income and expenses: Income from rubber toyboatrepais $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 the 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 Bill of the House $2,000 Real State Taxes $2,500 Mortgate Interest $4,500 Cash charitable contributions $3,500
Prepare form 1040, schedules A,C and SE for 1040, and form 2106, 8829. For the year 2015.
(Assume no depreciation for this problem and that no estimates taxes were paid by the Larges)
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