Bill and Mary Clients are married and wish to file jointly. Bill has been promoted

to Vice President for Com$-$Pac, a local packagng manufacturer. Mary is a self$-$employed attorney.

Requirements

Prepare an income tax return $($with appropriate schedules$)$ for $2022,$ the following tax forms. You will have to submit

the return to your manager for review. Use the following guidelines and information:

The taxpayers do not wish to contribute to the Presidential Elections Campaign Fund.

The taxpayers do not own any foreign bank accounts or other investments.

The taxpayers have the necessary substantiation $($e$.$g$.,$ records, receipts$)$ to support

all transactions reported in their tax return.

Make necessary assumptions for information not given in the problem but needed to

complete the return.

$1.$ Use the provided TaxAct file to start the second part of the project. This file contains items from part $1,$

but do not use your part $1$ file. Use the file I provided.

$2.$ Mary is a licensed attorney who works on a consulting basis. Mary collected $$75,000$

consulting fees during they year. Mary does her work at the clients premises or in her office

at home $($see item $4$ below$).$ The federal business code is $541100.$ Her buisness expenses

for they year are as follows:

Supplies $5000$ $ $4,500$

Library materials $7000$ $ $6,300$

Expert Legal and professional Services $10000$ $ $9,000$

Professional License Fees $400$ $ $360$

Subscriptions to professional journals $350$ $ $315$

Dues to professional organizations $500$ $ $450$

Contract labor $(1099$s issued to others$)12000$ $ $10,800$

Tip: You can find the input screen for $1099-$NEC on Schedule C line $1.$

$34000$

$3.$ On March $3$rd$,2020$ Mary purchased a new Ford SUV for use in her job. The SUV cost $--->$ $ $30,600$

$($including sales taxes$),$ with no trade$-$in involved. The SUV was driven $10,800$

miles. Mary reports that the car was used $80\%$ for business purposes for all years. $12000$

The mileage was evenly distributed throughout the year.

Mary uses actual cost method, and for depreciation he uses the

half$-$year convention. In addition, Mary did not claim any $179$ deduction or bonus

depreciation on the vehicle. The vehcile weighs over $6,000$ lbs$.$ Mary's expenses for the

Ford SUV are as follows:

Gasoline $3000$ $ $2,700$

Oil Changes $250$ $ $225$

Auto Insurance $2000$ $ $1,800$

Repairs $900$ $ $810$

AAA dues $160$ $ $144$

Registration $160$ $ $144$

Interest on car loan $500$ $ $-$

Parking $300$ $ $270$

$4.$ When the Clients purchased their home on February $2,2018,$ they allocated space

was set asside for Mary's office. As of January $1,2022$ the home has a basis of $$240,000($of

which $$40,000$ is attributed to land$)-$ the fair value of the house is in excess of this amount.

Relevant information concerning the home office is as follows:

Office square footage $240216$

Total home square footage $2,400$

Mortgage Interest Already on Schedule A$,$ but enter $$23,000$ on input screen as well.

Real Estate Taxes Already on Schedule A$,$ but enter $$6,700$ on input screen as well.

Homeowner's Insurance $3200$ $ $2,880$

Repairs and Maintenance $2000$ $ $1,800$

Utilities $6800$ $ $6,120$

Depreciation Enter information starting on the line above line $37.$

$5.$ Bill and Mary own a second home which they rent to tenants. The property is used $0\%$

for personal use. The house was originally Mary's grandmothers. She purchased the home in

$1975$ for $100,000($$$30,000$ of which was for land$).$ At the time of her death, March $12019,$ the house was appraised

at $$200,000($$$60,000$ of which was for land$).$ The address of the house is $35$ Apple Street, Murphysboro,

IL$,62966.$ There is no outstanding debt related to the property. Items for the year are listed below:

Rental Income $13,200$ $ $11,880$

Management Fee $2,000$ $ $1,800$

Cleaning $800$ $ $720$

Insurance $250$ $ $225$

Repairs $500$ $ $450$

Supplies $600$ $ $540$

Property Taxes $3000$ $ $2,700$

Utilities $120$ $ $108$

Bill and Mary are both occupied with their primary jobs; they hired a management company to perform

functions towards the rental house. They own $100\%$ of the house.