Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's 2016 Wage and Tax Statement (Form W2).
Line Description Amount 1 Wages, tips, other compensation $ 65,000.00
2 Federal income tax withheld 10,500.00
3 Social Security wages 65,000.00
4 Social Security tax withheld 4,030.00
5 Medicare wages and tips 65,000.00
6 Medicare tax withheld 942.50
15 State Arizona
16 State wages, tips, etc. 65,000.00
17 State income tax withheld 1,954.00
Other 2016 transactions include the following. Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099DIV.
Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2016. On her 2015 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer.
Fees earned from her part-time tax practice totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.
On February 8, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, Beth sold the stock for $14 a share.
Beth bought a used sport utility vehicle for $6,000 on June 5. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, she sold the vehicle to a friend for $6,500.
On January 2, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19 for $55 a share.
Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenditures in connection with her software development business.
Cost of personal computer (100% business use) $7,000
Cost of printer (100% business use) 2,000
Furniture 3,000
Supplies 650
Fee paid to computer consultant 3,500
Beth elected to deduct the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15 and used 100 percent in her business.
Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the conference. The $1,420 included $200 for meals.
Beth paid $300 for prescription medicines and $2,875 in physician and hospital bills. Medical insurance premiums were paid by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage at Valley National Bank was $3,845, and interest paid to credit card companies totaled $320. Beth contributed $2,080 to various qualified charities during the year. Professional dues and subscriptions totaled $350.
Beth paid $1,000 in estimated Federal income taxes throughout the year. She was covered for the entire year by Mesa Manufacturing's health insurance policy. 
SCHEDULE C (Form 1040 or 1040-SR Department of the Tre ime e Swe Name of proprietor Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) 2019 Go to www.irs.gov/Schedule for instructions and the latest Information Attachment A ttach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065 No. 09 Social security number (SSN) Principal business or profession, inducing product or service (see instructions B Enter code from instructions Business name. If no separate business name, leave blank D Employer number (EN) . Yes No Yes Yes No No Business address including suite or room no.) City, town or post office, state, and ZIP code Accounting method (1) Cash 2 Accrual (3) Other (specify Did you 'materially participate in the operation of this business during 2019? If "No." See instructions for imiton loge If you started or acquired this business during 2019, check here . Did you make any payments in 2019 that would require you to file Forms) 10907 (see instructions) J 'Yes, did you or will you fle required Forms 1099? Parti 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. . . . 2 Returns and allowances 3 Subtract line 2 from line 1 . . . , Cost of goods sold from line 42) 5 Gross profit. Subtract line 4 from line 3 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 19 25 Part II Expenses. Enter expenses for business use of your home only on line 30. Advertising 18 Office expense see instructions 18 Car and truck expensesse 19 Pension and profit-sharing plans instructions) 20 Rent or lease see instructions): 10 Commissions and foes a Vehicles, machinery, and equipment 20e Contract laborisce instructions b Other business property - 20b Depletion 21 Repairs and maintenance . 21 13 Depreciation and section 179 22 Supplies (not included in Part Ill). 2 expense deduction not 23 included Part 23 in I Taxes and licenses see instructions) - - 24 Travel and meals: Employee benefit programs (other than on ine 19) 14 b Deductible meals (see 15 Insurance other than health) 15 instructions) . . - . 24 16 Interest (see instructions): 25 Utilities a Mortgage paid to banks, etc.) 16a 26 Wages des employment credits) b Other . 165 27a Other expenses (from line 48) . 27a 17 Legal and professional services 17 Reserved for future use. 22 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 29 Tentative profit or loss) Subtractine 28 from line 7 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 flers only: enter the total square footage of your home and b) the part of your home used for business Use the Simplified Method Worksheet in the instructions to fgure the amount to enter on line 30. . 31 Net profit or floss). Subtract line 30 from line 29 . a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 for Form 1040-NR, ine 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. Ya loss, you must go to line 32 32 If you have a loss, check the box that describes your investment in this activity (see instructions) you checked 32, enter the loss on both Schedule 1 (Form 1040 or 1040 SR), line 3 for Form 1040-NR, line 13) and on Schedule SE, line 2. Or you checked the box on line 1, see the line 32a All investment is at risk. 31 instructions) Estates and trusts, enter on Form 1041, line 3 32b Some investment is not at risk If you checked 32b, you must attach Form 6196. Your loss may be limited For Paperwork Reduction Act Notice, see the separate instructions Call No. 11334P Schedule C Form 1040 or 1040-SR) 2019 30 SCHEDULE C (Form 1040 or 1040-SR Department of the Tre ime e Swe Name of proprietor Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) 2019 Go to www.irs.gov/Schedule for instructions and the latest Information Attachment A ttach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065 No. 09 Social security number (SSN) Principal business or profession, inducing product or service (see instructions B Enter code from instructions Business name. If no separate business name, leave blank D Employer number (EN) . Yes No Yes Yes No No Business address including suite or room no.) City, town or post office, state, and ZIP code Accounting method (1) Cash 2 Accrual (3) Other (specify Did you 'materially participate in the operation of this business during 2019? If "No." See instructions for imiton loge If you started or acquired this business during 2019, check here . Did you make any payments in 2019 that would require you to file Forms) 10907 (see instructions) J 'Yes, did you or will you fle required Forms 1099? Parti 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. . . . 2 Returns and allowances 3 Subtract line 2 from line 1 . . . , Cost of goods sold from line 42) 5 Gross profit. Subtract line 4 from line 3 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 19 25 Part II Expenses. Enter expenses for business use of your home only on line 30. Advertising 18 Office expense see instructions 18 Car and truck expensesse 19 Pension and profit-sharing plans instructions) 20 Rent or lease see instructions): 10 Commissions and foes a Vehicles, machinery, and equipment 20e Contract laborisce instructions b Other business property - 20b Depletion 21 Repairs and maintenance . 21 13 Depreciation and section 179 22 Supplies (not included in Part Ill). 2 expense deduction not 23 included Part 23 in I Taxes and licenses see instructions) - - 24 Travel and meals: Employee benefit programs (other than on ine 19) 14 b Deductible meals (see 15 Insurance other than health) 15 instructions) . . - . 24 16 Interest (see instructions): 25 Utilities a Mortgage paid to banks, etc.) 16a 26 Wages des employment credits) b Other . 165 27a Other expenses (from line 48) . 27a 17 Legal and professional services 17 Reserved for future use. 22 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 29 Tentative profit or loss) Subtractine 28 from line 7 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 flers only: enter the total square footage of your home and b) the part of your home used for business Use the Simplified Method Worksheet in the instructions to fgure the amount to enter on line 30. . 31 Net profit or floss). Subtract line 30 from line 29 . a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 for Form 1040-NR, ine 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. Ya loss, you must go to line 32 32 If you have a loss, check the box that describes your investment in this activity (see instructions) you checked 32, enter the loss on both Schedule 1 (Form 1040 or 1040 SR), line 3 for Form 1040-NR, line 13) and on Schedule SE, line 2. Or you checked the box on line 1, see the line 32a All investment is at risk. 31 instructions) Estates and trusts, enter on Form 1041, line 3 32b Some investment is not at risk If you checked 32b, you must attach Form 6196. Your loss may be limited For Paperwork Reduction Act Notice, see the separate instructions Call No. 11334P Schedule C Form 1040 or 1040-SR) 2019 30
