Ch $8$ Tax Return Problem $$ Individual $($Form $1040)$

Janice Morgan, age $24,$ is single and has no dependents. She is a freelance writer. In January $2022,$ Janice

opened her own office located at $2751$ Waldham Road, Pleasant Hill, NM $88135.$ She called her business

Writers Anonymous. Janice is a cash basis taxpayer. She lives at $132$ Stone Avenue, Pleasant Hill, NM

$88135.$ Her Social Security number is $123-45-6782.$ Janice's parents continue to provide health insurance

for her under their policy. Janice did not engage in any virtual currency transactions during the year and

wants to contribute to the Presidential Election Campaign Fund.

During $2022,$ Janice reported the following income and expense items connected with her business.

Income from sale of articles $$95,000$

Rent $16,500$

Utilities $7,900$

Supplies $1,800$

Insurance $5,000$

Travel $($including restaurant meals of $$600)2,900$

Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect

immediate expensing under $179,$ if possible.

$$ Furniture and fixtures $($new$)$ costing $$21,000$ on January $10.$

$$ Computer equipment $($new$)$ costing $$12,400$ on July $28.$

Janice's itemized deductions include:

State income tax $$2,950$

Home mortgage interest paid to First National Bank $8,000$

Property taxes on home $2,500$

Charitable contribution to her alma mater, State College $1,200$

Janice did not keep a record of the sales tax she paid. The amount allowed by the sales tax table is $$437.$

Janice reports interest income of $$4,000$ on certificates of deposit at Second National Bank. She made

estimated tax payments of $$5,000$ for $2022.$