David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David earned consulting fees of $145,000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ellas employer but have chosen not to participate in its 401(k) retirement plan. Davids employment-related expenses for 2018 are summarized below.

Airfare $8,800

Lodging $5,000

Meals (during travel status) $4,800

Entertainment $3,600

Ground transportation (e.g., limos, rental cars, and taxis) $800

Business gifts. $900

Office supplies (includes postage, overnight delivery, and copying). $1,500

The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. In addition, David drove his 2016 Ford Expedition 11,000 miles for business

and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2018.

When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes; see below) are as follows:

Insurance. $2,600

Repairs and maintenance $900

Utilities. $4,700

Painting office area; area rugs and plants (in the office). $1,800

In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes.

Ella works at a variety of offices as a substitute when a hygienist is ill or on vaca-tion or when one of the clinics is particularly busy (e.g., prior to the beginning of the school year). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below.

Uniforms $690

State and city occupational licenses. $380

Professional journals and membership dues in the American Dental Hygiene Association. $340

Correspondence study course (taken online) dealing with teeth whitening procedures. $420

Ellas salary for the year is $42,000, and her Form W2 for the year shows income tax withholdings of $5,000 (Federal) and $1,000 (state) and the proper amount of Social Security and Medicare taxes.

Besides the items already mentioned, the Coles had the following receipts dur-ing 2018.

Interest income

State of Colorado general purpose bonds. $2,500

IBM bonds $800

Wells Fargo $1,200 $4500

Bank Federal income tax refund for year 2017. $510

Life insurance proceeds paid by Eagle Assurance

Corporation $200,000

Inheritance of savings account from Sarah Cole $50,000

Sales proceeds from two ATVs. $9,000

For several years, the Coles household has included Davids divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the des-ignated beneficiary of each). In 2017, the Coles purchased two ATVs for $14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor.

Additional expenditures for 2018 include:

Funeral expenses for Sarah. $4,500

Taxes

Real property taxes on personal residence. $6,400

Colorado state income tax due (paid in April 2018 for tax year 2017) $310. $6,710

Mortgage interest on personal residence (Rocky Mountain Bank) $6,600

Paid church pledge. $2,400

Contributions to traditional IRAs for Ella and David ($5,500 $5,500) $11,000

In 2018, the Coles made quarterly estimated tax payments of $6,000 (Federal) and $500 (state) for a total of $24,000 (Federal) and $2,000 (state).

Part 1Tax Computation

Using the appropriate forms and schedules, compute the Coles Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and various education cred-its since these items are not discussed until later in the text (Chapters 12 and 13). Relevant Social Security numbers are:

David Cole 123-45-6788

Ella Cole. 123-45-6787

The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next years tax liability. David will have a self-employment tax liability; refer to Exhibit 13.9 in Chapter 13 to compute this liability. Suggested software: ProConnect Tax Online

OG A dam Add amount to che and h Refund 18 19 20 Fan come tax on Forms and 1000 Rotunda Son 12 Addwy amount from Schedules Adines 16 and 17 These are your payments in 1 more than 15, subtract line 15tromine . This is the amount you over Amount of line 19 you want refunded to you. For the checker e Type Account number Amountain your 2010 s et 21 Amount you owe Subtractine 18 from ine 15. For details on how to pay seeint d 21 You Owe 22 Am Go to www.in.goviiForm 1000 for instructions and the latest Information 1040 SCHEDULEC (Form 1040) Department of the Treasury intem Service Name of proprietor 2018 Profit or Loss From Business OMB NO. 1545-0074 (Sole Proprietorship Go to www.irs.gov/Schedule for instructions and the latest information Attachment Attach to Form 1040 1040NR, or 1041: partnerships generally must file Form 1065. Sen Ne 09 Social security number (SSN A Principal business or profession, including product or services instructions Enter code from a ction C Business name. If no separate business name, leave blank. D Employer number is instr) Yes No H Yes Yes No No E Business address including suite or room no.) City, town or post office state, and ZIP code Accounting method: (1) Cash Accrual 3 other specity Did you materially participate in the operation of this business during 2018? "No," se instructions for limit on y ou started or acquired this business during 2018, check here Did you make any payments in 2018 that would require you to fle Formis) 10992 (en instructions) J 'Yes," did you or will you be required Forms 1099? Part I 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 for was checked. . . 2 fetums and allowances. . . . . . . . . . . . 3 Subtractine 2 from line 1 4 Cost of goods sold from line 42) . . . . . . . . . 5 Gross profit. Subtractine 4 from line 3 . . . . 6 Other income, including federal and state gasoine or fuel tax credit or refund e instructions) 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30. 6 Advertising . . 18 Office expenses instructions) 18 9 Car and truck expenses 19 Pension and profit sharing plans 19 instructions) 20 Rent or lease see instructions 10 Commissions and fees, 10 a Vehicles, machinery and equipment 20a Contractors instructions Other business property- Depliation - 21 Repairs and maintenance... Depreciation and section 179 22 Supplies (not included in Part expense deduction inot 23 Included in Part see Taxes and licenses instructions . . 24 Travel and meals: 14 Employee benefit programs a Travel 24a other than on line 19) b Deductible meals (see 15 Insurance other than health 15 instructions). 24 16 interest instructions 25 Utilities a Mortgage paid to banks, etc.) 16a 26 Wages less employment credits) Other . 27a Other expenses from ine 48). . 17 Legal and professional services 17 Reserved for future use . 27b 28 Total expenses before expenses for business use of home Add lines through 27a. . . . . . 28 29 Tentative profit or loss. Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method is instructions Simplified method filers only enter the total square footage of your home. and the part of your home used for business Use the Simplified Method Workshoot in the instructions to figure the amount to enter on line 30 31 Net profit or loss. Subtract line 30 from line 29 . If a profit, enter on both Schedule 1 Form 10401.ine 12 for Form 1046NR, line 13 and on Schedule SE, line 2 If you checked the box on line 1. instructions Estats and trusts, enter on Form 1041, line 3 If a loss, you must go to line 32 32 If you have a loss, check the box that descrbes your investment in this activity see instructions If you checked 32a, enter the loss on both Schedule 1 Form 10401. line 12 for Form 1040NR. 32a line 13) and on Schedule SE, line 2. you checked the box on line 1. see the line 31 instructions Estates and trusts, enter on Form 1041, line 3 32b If you checked 320, you must attach Form 6198. Your loss may be limited For Paperwork Reduction Act Notice, see the separate instructions. Cat No. 11334P Al investment is at risk. Some investment is not Schedule Form 1940, 2018 Scho Part II 1 2018 Cost of Goods Sold See instructions 33 Method to valuecosing invertory Cost Lower of cost ormare e O c helor Was there any change in determining quantities.co.or volutions be c oming and closing into 4 35 tory beginning of you r from last year's long torch o n > Purchase cost of drawn for personal use - - - - - - - 37 Cost of labor. Do not include any amount paid to you 38 Materials and supplies . 30 Other cost- 10 Aadnes 35ough 39. -- - - - - 42 Cost of goods sold. Subtract line 41 from line 40. Enter the rest here and online Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 43 When did you place your vehicle in service for business purposes? (month day. year . 4 Of the total number of miles you drove your vehicle during 2018 enter the number of mes you used your vehicle for . Business ... Commuting instructions 45 Was your vehicle valable for personal use during of duty hours? 46 Do you for your spouse have another vehicle available for personal use?....... OOO OOO 47a Do you have evidence to support your deduction? - - - - - - - - - - - Part V "Yes" is the evidence written? Other Expenses. List below business expenses not included on lines 8-25 or line 30 48 Toother expenses here and online 27a . . Schedeform100 2018 SCHEDULE A (Form 1040) 1 Itemized Deductions Go to www.lrs.gov/Schedule A for instructions and the latest information Attach to Form 1040. you are claiming a net qualified disaster loss on Form 4684. see the instructions for ine 16 OMDN 1545-0074 2018 Seene Mo 07 Hom e Service Caution Name shown on Form 1040 Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses see instructions) ... 2 Enter amount from Form 1040 line 7 2 3 Multiply line 2 by 7.5% (0.075) . . 4 Subtract line 3 from line 1. I line 3 is more than line 1. enter-O- 5 State and local taxes a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box . . . . . . b State and local real estate taxes e instructions) . . . . State and local personal property taxes . . . d Add lines sa through 5c Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount Interest You Paid Caution: Your mortgage Interest 7 Add lines 50 and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy, build, or improve your home, See instructions and check this box.. . . . . . a Home mortgage interest and points reported to you on Form Oddion may be instructions bHome mortgage interest not reported to you on Form 1098, paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 10 A cPoints not reported to you on Form 1098. See instructions for special rules d Reserved e Add lines Ba through Bc. 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines Be and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. 12 13 Carryover from prior year . 13 se instructions 14 Add lines 11 through 13. Casualty and 15 Casualty and theft lowlos) from a federally declared disaster other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 16 Other-from list in instructions. List type and amount Hemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8.. Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040 Cat No. 171450 Other Schedule Afform 1046 2018 I OMB No 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2018 Attach to Form 1040. Go to www.irs.gov/ Form 10-40 for instructions and the latest information Atache No. 01 Internal Revenue Service partment of the Treasury Names shown on For 1040 Your social security number 10 12 13 14 . . . 15b 16b 17 18 19 20b 21 22 Additional 1-96 Reserved 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . Income 11 Alimony received ... . 12 Business income or loss). Attach Schedule C or C-EZ ......... 13 Capital gain or loss). Attach Schedule D if required. If not required, check here O 14 Other gains or losses). Attach Form 4797... 15a Reserved . . . . . . . . . . . . 16a Reserved . . . . 17 Rental real estate, royalties, partnerships. S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F ... 19 Unemployment compensation . . . . . . . . . . . . . 20a Reserved . . . . . . . . 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 Adjustments 23 Educator expenses............ 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 .. 25 Health Savings account deduction. Attach Form 8889 . 25 26 Moving expenses for members of the Armed Forces Attach Form 3903 . . . . 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP. SIMPLE, and qualified plans .. 28 29 Self-employed health insurance deduction .. 29 Penalty on early withdrawal of savings... 31a Alimony paid b Recipient's SSN 31a 32 IRA deduction. 32 33 Student loan interest deduction..... 34 Reserved . . . . . . . . . . 35 Reserved . . . . . . . . . . . 35 36 Add lines 23 through 35 ... . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 714 79F 24 30 33 34 36 Schedule 1 (Form 1040) 2018 SCHEDULED (Form 1040) Capital Gains and Losses 2018 Aracht Form 100 gr Form 104NA Go to www.sgow Sched for instructions and the latest information Use Form 8949 to list your transactions for nestb. 2. 3.8. 9. and 10 12 Part Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less see instructions See instructions for how to figure the amounts to enter on the lines below This form may be easier to complete if you round off cents to PL whole dollars 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b 1b Totals for all transactions reported on Forms) 89.49 with Box A checked . 2 Totals for all transactions reported on Formis) 8949 with Box Bchecked . . 3 Totals for all transactions reported on Forms) 8949 with Box C checked 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8824 .. 5 Net short-term gain or loss) from partnerships. S corporations, estates, and trusts from Schedules) K.1 . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount of any, from ine 8 of your Capital Loss Carryover Worksheet in the instructions . . 7 Net short-term capital gain or lossCombine lines ta through 6 in column . If you have any long- term capital gains or losses, go to Part Il below. Otherwise, go to Part Ill on the back Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) win com See instructions for how to figure the amounts to enter on the Ines below or This form may be easier to complete if you round off cents to whole dollars 2. Ba Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no acustments (e instructions However, if you choose to report all these transactions on Form 8049, leave this line bank and go to line 8 Bb Totais for all transactions reported on Formis) 8949 with Box D checked . 9 Totals for all transactions reported on Formis) 8949 with Box Echecked . 10 Totals for all transactions reported on Formis) 8949 with Box F checked. 11 Gain from Form 4797, Part t long-term gain from Forms 2439 and 6252 and long-term gain oro from Forms 4684,6781. and 8624......... 12 Net long-term gain or loss from partnerships Scorporations, estates, and trusts from Schedules K-1 12 13 Capital gain distributions. See the instructions . . . . . . . 14 Long-term capital loss canyover Enter the amount, any from line 13 of your Capital Loss Camyover Worksheet in the instructions 15 Net long-term capital gain or loss. Combine lines Bathrough 14 incolumn. Then go to Parton For Paperwork Reduction Act Notice, see your tax return instructions Cat No 11335 Sched for 10 2018 Schedule Dorm 1000 2018 Part III Summary 16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . If line 16 is a gain, enter the amount from line 16 on Schedule 1 (Form 10401. line 13. or Form 1040NR line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22 If line 16 is zero, skip lines 17 through 21 below and enter-O-on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14. Then go to line 22 17 Arelines 15 and 16 both gains? Yes. Go to line 18 No. Skip lines 18 through 21, and go to line 22 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions). enter the amount, if any, from line 7 of that worksheet .. . . . . . . . . . . . . . . 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet . . . . . . 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 TF line 16 is a loss, enter here and on Schedule 1 (Form 1040), line 13. or Form 1040NR, line 14 the smaller of The loss on line 16; or ($3.000), or if married fling separately. ($1,500) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 3a, or Form 1040NR, line 100? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a (or in the instructions for Form 1040NR line 42 No. Complete the rest of Form 1040 or Form 1040NR. Schedule Dom 1040 2018 SCHEDULEB Form 1040 Interest and Ordinary Dividends Go to www.rsgow Schedule for instructions and the latest information Arach to form 1040 Interest and ordinary Dividends.com 2018 20 N ese shown on tum 1 Part 1 Interest Se c tions and the st none of payer. Han interest is from a ser-nenced mortgage and the buyer used the property as a personal dence the instructions and this interest first. Also, show that buyer's s e curity number and address Form 1040 ne 20) Note: you 1000 INT Form 10-OD. a brokerage the 's the total interest shown on that 2 Add the amounts on ine 1. - 3 Excludable interest on series EE and I U.S. Savings bonds sued after 1999 Attach Form 8815. 4 Subtract line 3 from line 2. Enter the rest here and on Form 1040, line 2b. Note: If line 4 is over $1,500, you must complete Part II 5 Listame of payer Part II Ordinary Dividends Se instructions wid the structions for Form 1040 Noter you received a Form 1000-OV OF woment om a brokerage at the firm's name as the the ordinary dividends shown Add the amounts on line 5. Enter the total here and on Form 1040, Ine 3 on that form Note: line 6 is over $1,500, you must complete Part Part III You must complete this part you had over $1.500 of t o day videndada foreign account or received a distribution from or were a grantortor aansoor to a foreign trust Foreign Ta At any time during 2018 did you have a financial n o s u suthority overnance Accounts account such as a bank account Securities account or brokerage account located in a foreign country See instructions - and Trusts Yes are you required to FinCEN Form 114 Report of Foreign Bank and Financial chons Accounts FBAR. to report that financial interest or signature author See FCEN Form 114 and is instructions for fling requirements and exceptions to those m oments b y you are required to file FCEN Form 114, enter the name of the foreign country where the financial account is located 8 During 2018, did you receive a distribution from or were you the grantorot, or transferorto, a foreign trust? Yes, you may have to Form 3520. See instructions For Paperwork Reduction Act Notice we your tax return instructions B B S 2018 SCHEDULE SE Self-Employment Tax (Form 1040) Go to www.irs.gov/Schedules for instructions and the latest information Department of the Treasury Attach to Form 1040 or Form 1040NR. Name of person with self-employment income as shown onorm 100 or Form TORONR Social security number of person with self-employment income OMB No 1545-0074 2018 Sam 17 Before you begin: To determine if you must file Schedule SE, see the instructions May I Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE.Wunsure, see Who Must File Schedule SE in the instructions Did you receive wages or tips in 2018? Are you a minister member of a religious order or Christian Science practitioner who received IRS aproval not to be taxed on earings from these source, but you owe self-employment Was the total of your wages and tips subject to social security Yes of railroad retirement for tax plus your nel camnings from omployment more than $120.4007 Are you using one of the optional methods to sure your camins instructions Did you receive it to social security or Medicare tax that you didn't report to your employer Did you receive church employee income seestructions reported on Form W201 $108.28 or more? Yes Did you report any wages on Form 1919. Uncollected Social Security and Medicare Taxon Wage? NO You may use Short Schedule SE below You must use Long Schedule SE on page 2 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Netfarm profit or loss from Schedule F, line 34, and farm partnerships Schedule K-1 (Form 1005), box 14, code A. . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F. line 4b, or listed on Schedule K-1 (Form 1065), box 20. code AM 2 Net profit or loss) from Schedule C, line 31: Schedule C-EZ, line 3: Schedule K-1 (Form 1065 box 14, code A (other than farming and Schedule K-1 (Form 1065-8), box 9, code Jl. Ministers and members of religious orders. see instructions for types of income to report on this line. See Instructions for other income to report. . . 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . Multiply line 3 by 92.35% (0.9235). If less than $400. you don't owe self-employment tax don't file this schedule unless you have an amount on line 1b. . . . . . . . Note: if ne 4 is less than $400 due to conservation Reserve Program payments on line 1b. see instructions Self-employment tax. If the amount on line 4 is: $128.400 or less multiply line 4 by 15 3% 10.153) Enter the result here and on Schedule 4 (Form 1040), line 57, or Form 1040NR line 55 . More than $128.400, multiply line 4 by 2.9% 0.029. Then, add $15.92160 to the result Enter the total here and on Schedule 4 (Form 1040), line 57. or Form 1040NR. line 55. 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% 0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27. For Paperwork Reduction Act Notice. see your tax return instructions. Cat No 11:35AZ 5 Schedule SE (Form 1040 2018 Sched Form 100 2018 Section B-Long Schedule SE Part I Self-Employment Tax Note your only income subject t employment axis church employee Income se ctions. Also Sestructions for the definition of church employee income A you are a minister member of a religious order, or Christian Science practitioner and you sed Form 1961, but you had $400 or more of other tearings from s cmployment check here and continue with Parti ta Netfarm profit or from Schedule F. line 34 and far partnerships Schedule K-1 Form 1065 box 14 code A NoteSkip lines Ta and Tb you use the tarm optional method is instructions b you received social security rement or disability benesterse amount of Conservation Reserve Program payments included on Schedule Fine or listed on Schedule 1 Fom 106.box20code AH10 Net profit or loss from Schedule C, line 31: Schedule CEZ line 3: Schedule K-1 Form 1065) box 14 code A other than farming and Schedule K-1 Form 1055-B box 9 code J1 Ministers and members of religious orders. See instructions for types of income to report on this line. See instructions for other income to report. Note: Skip this line you use the nonform optional method instructions . . . . . . . . . . . . 3 Combine lines talb, and 2. . - - - - da line 3 is more than zero, multiply line 3 by 92.35% 0.9235) Otherwise, enter amount from line 3 4 Note: line is loss than $400 due to Conservation Reserve Program payments on the se instructions If you elect one or both of the optional methods, enter the total of lines 15 and 17 there Combine lines 4a and 4b. If less than $400. stops you don't owe self-employment tax Exception: If less than $400 and you had church employee income, antr-o and continue 5o Enter your church employee income from Form W-2. See Instructions for definition of church employee income. Sa Multiply line 5a by 92.35% 10.9235). less than $100, enter-O-.-.-.- 6 Add lines and 5b . . . - - 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement tier 1) tax for 2018...... Ba Total social security wages and tips total of boxes 3 and 7 on Form(s) W-2) and r oad retirement tier 1) compensation I $128,400 or more, skip lines b through 10, and go to line 11 8 b Unreported tips subject to social security tax from Form 4137, line 10 8 c Wages subject to social security tax from Form 1919, line 10 8 d Add lines Ba, b, and Bc 9 Subtract lined from line 7. If zero or less enter-O- here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124. - - 11 Multiply line 6 by 2.9% (0.029). . . 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 4 Form 10401. line 57, or Form 1040NR, line 55 ... 13 Deduction for one-half of self-employment tax Multiply line 12 by 50% 10.50). Enter the result here and on Schedule 1 Form 1040), line 27, or Form 1040NR, line 27 13 Part II Optional Methods To Figure Net Earnings see instructions Farm Optional Method. You may use this method only all your gross tam income wasn't more than $7.920, or bl your netfarm profits were less than $5.717. 14 Maximum income for optional methods . . 15 Enter the smaller of two-thirds of gross farm income not less than er or $5.280. As include this amount online above Nontarm Optional Method. You may use this method o f your morto s an $ 717 and also than 72.180 of your gross moram income and you had teringsfo loyment of $400 in 2 of the prior 3 years Caution. You may use this methodno more than Semes 16 Subtract line 15 from line 14. 17 Enter the smaller ottwo-thirds of gross nonform income not less than or the amount on line 16. Also include this amount online above. - FromSoFine and Se K-1 fotobox 14.de from Finland S K-1 for 1065x14 amount you would have done had you not from Sonnet Scies -1 Fm 106514. Aand SK For Tobox.code - the optional Schem 00018 OG A dam Add amount to che and h Refund 18 19 20 Fan come tax on Forms and 1000 Rotunda Son 12 Addwy amount from Schedules Adines 16 and 17 These are your payments in 1 more than 15, subtract line 15tromine . This is the amount you over Amount of line 19 you want refunded to you. For the checker e Type Account number Amountain your 2010 s et 21 Amount you owe Subtractine 18 from ine 15. For details on how to pay seeint d 21 You Owe 22 Am Go to www.in.goviiForm 1000 for instructions and the latest Information 1040 SCHEDULEC (Form 1040) Department of the Treasury intem Service Name of proprietor 2018 Profit or Loss From Business OMB NO. 1545-0074 (Sole Proprietorship Go to www.irs.gov/Schedule for instructions and the latest information Attachment Attach to Form 1040 1040NR, or 1041: partnerships generally must file Form 1065. Sen Ne 09 Social security number (SSN A Principal business or profession, including product or services instructions Enter code from a ction C Business name. If no separate business name, leave blank. D Employer number is instr) Yes No H Yes Yes No No E Business address including suite or room no.) City, town or post office state, and ZIP code Accounting method: (1) Cash Accrual 3 other specity Did you materially participate in the operation of this business during 2018? "No," se instructions for limit on y ou started or acquired this business during 2018, check here Did you make any payments in 2018 that would require you to fle Formis) 10992 (en instructions) J 'Yes," did you or will you be required Forms 1099? Part I 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 for was checked. . . 2 fetums and allowances. . . . . . . . . . . . 3 Subtractine 2 from line 1 4 Cost of goods sold from line 42) . . . . . . . . . 5 Gross profit. Subtractine 4 from line 3 . . . . 6 Other income, including federal and state gasoine or fuel tax credit or refund e instructions) 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30. 6 Advertising . . 18 Office expenses instructions) 18 9 Car and truck expenses 19 Pension and profit sharing plans 19 instructions) 20 Rent or lease see instructions 10 Commissions and fees, 10 a Vehicles, machinery and equipment 20a Contractors instructions Other business property- Depliation - 21 Repairs and maintenance... Depreciation and section 179 22 Supplies (not included in Part expense deduction inot 23 Included in Part see Taxes and licenses instructions . . 24 Travel and meals: 14 Employee benefit programs a Travel 24a other than on line 19) b Deductible meals (see 15 Insurance other than health 15 instructions). 24 16 interest instructions 25 Utilities a Mortgage paid to banks, etc.) 16a 26 Wages less employment credits) Other . 27a Other expenses from ine 48). . 17 Legal and professional services 17 Reserved for future use . 27b 28 Total expenses before expenses for business use of home Add lines through 27a. . . . . . 28 29 Tentative profit or loss. Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method is instructions Simplified method filers only enter the total square footage of your home. and the part of your home used for business Use the Simplified Method Workshoot in the instructions to figure the amount to enter on line 30 31 Net profit or loss. Subtract line 30 from line 29 . If a profit, enter on both Schedule 1 Form 10401.ine 12 for Form 1046NR, line 13 and on Schedule SE, line 2 If you checked the box on line 1. instructions Estats and trusts, enter on Form 1041, line 3 If a loss, you must go to line 32 32 If you have a loss, check the box that descrbes your investment in this activity see instructions If you checked 32a, enter the loss on both Schedule 1 Form 10401. line 12 for Form 1040NR. 32a line 13) and on Schedule SE, line 2. you checked the box on line 1. see the line 31 instructions Estates and trusts, enter on Form 1041, line 3 32b If you checked 320, you must attach Form 6198. Your loss may be limited For Paperwork Reduction Act Notice, see the separate instructions. Cat No. 11334P Al investment is at risk. Some investment is not Schedule Form 1940, 2018 Scho Part II 1 2018 Cost of Goods Sold See instructions 33 Method to valuecosing invertory Cost Lower of cost ormare e O c helor Was there any change in determining quantities.co.or volutions be c oming and closing into 4 35 tory beginning of you r from last year's long torch o n > Purchase cost of drawn for personal use - - - - - - - 37 Cost of labor. Do not include any amount paid to you 38 Materials and supplies . 30 Other cost- 10 Aadnes 35ough 39. -- - - - - 42 Cost of goods sold. Subtract line 41 from line 40. Enter the rest here and online Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 43 When did you place your vehicle in service for business purposes? (month day. year . 4 Of the total number of miles you drove your vehicle during 2018 enter the number of mes you used your vehicle for . Business ... Commuting instructions 45 Was your vehicle valable for personal use during of duty hours? 46 Do you for your spouse have another vehicle available for personal use?....... OOO OOO 47a Do you have evidence to support your deduction? - - - - - - - - - - - Part V "Yes" is the evidence written? Other Expenses. List below business expenses not included on lines 8-25 or line 30 48 Toother expenses here and online 27a . . Schedeform100 2018 SCHEDULE A (Form 1040) 1 Itemized Deductions Go to www.lrs.gov/Schedule A for instructions and the latest information Attach to Form 1040. you are claiming a net qualified disaster loss on Form 4684. see the instructions for ine 16 OMDN 1545-0074 2018 Seene Mo 07 Hom e Service Caution Name shown on Form 1040 Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses see instructions) ... 2 Enter amount from Form 1040 line 7 2 3 Multiply line 2 by 7.5% (0.075) . . 4 Subtract line 3 from line 1. I line 3 is more than line 1. enter-O- 5 State and local taxes a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box . . . . . . b State and local real estate taxes e instructions) . . . . State and local personal property taxes . . . d Add lines sa through 5c Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount Interest You Paid Caution: Your mortgage Interest 7 Add lines 50 and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy, build, or improve your home, See instructions and check this box.. . . . . . a Home mortgage interest and points reported to you on Form Oddion may be instructions bHome mortgage interest not reported to you on Form 1098, paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 10 A cPoints not reported to you on Form 1098. See instructions for special rules d Reserved e Add lines Ba through Bc. 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines Be and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. 12 13 Carryover from prior year . 13 se instructions 14 Add lines 11 through 13. Casualty and 15 Casualty and theft lowlos) from a federally declared disaster other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 16 Other-from list in instructions. List type and amount Hemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8.. Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040 Cat No. 171450 Other Schedule Afform 1046 2018 I OMB No 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2018 Attach to Form 1040. Go to www.irs.gov/ Form 10-40 for instructions and the latest information Atache No. 01 Internal Revenue Service partment of the Treasury Names shown on For 1040 Your social security number 10 12 13 14 . . . 15b 16b 17 18 19 20b 21 22 Additional 1-96 Reserved 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . Income 11 Alimony received ... . 12 Business income or loss). Attach Schedule C or C-EZ ......... 13 Capital gain or loss). Attach Schedule D if required. If not required, check here O 14 Other gains or losses). Attach Form 4797... 15a Reserved . . . . . . . . . . . . 16a Reserved . . . . 17 Rental real estate, royalties, partnerships. S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F ... 19 Unemployment compensation . . . . . . . . . . . . . 20a Reserved . . . . . . . . 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 Adjustments 23 Educator expenses............ 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 .. 25 Health Savings account deduction. Attach Form 8889 . 25 26 Moving expenses for members of the Armed Forces Attach Form 3903 . . . . 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP. SIMPLE, and qualified plans .. 28 29 Self-employed health insurance deduction .. 29 Penalty on early withdrawal of savings... 31a Alimony paid b Recipient's SSN 31a 32 IRA deduction. 32 33 Student loan interest deduction..... 34 Reserved . . . . . . . . . . 35 Reserved . . . . . . . . . . . 35 36 Add lines 23 through 35 ... . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 714 79F 24 30 33 34 36 Schedule 1 (Form 1040) 2018 SCHEDULED (Form 1040) Capital Gains and Losses 2018 Aracht Form 100 gr Form 104NA Go to www.sgow Sched for instructions and the latest information Use Form 8949 to list your transactions for nestb. 2. 3.8. 9. and 10 12 Part Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less see instructions See instructions for how to figure the amounts to enter on the lines below This form may be easier to complete if you round off cents to PL whole dollars 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b 1b Totals for all transactions reported on Forms) 89.49 with Box A checked . 2 Totals for all transactions reported on Formis) 8949 with Box Bchecked . . 3 Totals for all transactions reported on Forms) 8949 with Box C checked 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8824 .. 5 Net short-term gain or loss) from partnerships. S corporations, estates, and trusts from Schedules) K.1 . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount of any, from ine 8 of your Capital Loss Carryover Worksheet in the instructions . . 7 Net short-term capital gain or lossCombine lines ta through 6 in column . If you have any long- term capital gains or losses, go to Part Il below. Otherwise, go to Part Ill on the back Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) win com See instructions for how to figure the amounts to enter on the Ines below or This form may be easier to complete if you round off cents to whole dollars 2. Ba Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no acustments (e instructions However, if you choose to report all these transactions on Form 8049, leave this line bank and go to line 8 Bb Totais for all transactions reported on Formis) 8949 with Box D checked . 9 Totals for all transactions reported on Formis) 8949 with Box Echecked . 10 Totals for all transactions reported on Formis) 8949 with Box F checked. 11 Gain from Form 4797, Part t long-term gain from Forms 2439 and 6252 and long-term gain oro from Forms 4684,6781. and 8624......... 12 Net long-term gain or loss from partnerships Scorporations, estates, and trusts from Schedules K-1 12 13 Capital gain distributions. See the instructions . . . . . . . 14 Long-term capital loss canyover Enter the amount, any from line 13 of your Capital Loss Camyover Worksheet in the instructions 15 Net long-term capital gain or loss. Combine lines Bathrough 14 incolumn. Then go to Parton For Paperwork Reduction Act Notice, see your tax return instructions Cat No 11335 Sched for 10 2018 Schedule Dorm 1000 2018 Part III Summary 16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . If line 16 is a gain, enter the amount from line 16 on Schedule 1 (Form 10401. line 13. or Form 1040NR line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22 If line 16 is zero, skip lines 17 through 21 below and enter-O-on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14. Then go to line 22 17 Arelines 15 and 16 both gains? Yes. Go to line 18 No. Skip lines 18 through 21, and go to line 22 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions). enter the amount, if any, from line 7 of that worksheet .. . . . . . . . . . . . . . . 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet . . . . . . 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 TF line 16 is a loss, enter here and on Schedule 1 (Form 1040), line 13. or Form 1040NR, line 14 the smaller of The loss on line 16; or ($3.000), or if married fling separately. ($1,500) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 3a, or Form 1040NR, line 100? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a (or in the instructions for Form 1040NR line 42 No. Complete the rest of Form 1040 or Form 1040NR. Schedule Dom 1040 2018 SCHEDULEB Form 1040 Interest and Ordinary Dividends Go to www.rsgow Schedule for instructions and the latest information Arach to form 1040 Interest and ordinary Dividends.com 2018 20 N ese shown on tum 1 Part 1 Interest Se c tions and the st none of payer. Han interest is from a ser-nenced mortgage and the buyer used the property as a personal dence the instructions and this interest first. Also, show that buyer's s e curity number and address Form 1040 ne 20) Note: you 1000 INT Form 10-OD. a brokerage the 's the total interest shown on that 2 Add the amounts on ine 1. - 3 Excludable interest on series EE and I U.S. Savings bonds sued after 1999 Attach Form 8815. 4 Subtract line 3 from line 2. Enter the rest here and on Form 1040, line 2b. Note: If line 4 is over $1,500, you must complete Part II 5 Listame of payer Part II Ordinary Dividends Se instructions wid the structions for Form 1040 Noter you received a Form 1000-OV OF woment om a brokerage at the firm's name as the the ordinary dividends shown Add the amounts on line 5. Enter the total here and on Form 1040, Ine 3 on that form Note: line 6 is over $1,500, you must complete Part Part III You must complete this part you had over $1.500 of t o day videndada foreign account or received a distribution from or were a grantortor aansoor to a foreign trust Foreign Ta At any time during 2018 did you have a financial n o s u suthority overnance Accounts account such as a bank account Securities account or brokerage account located in a foreign country See instructions - and Trusts Yes are you required to FinCEN Form 114 Report of Foreign Bank and Financial chons Accounts FBAR. to report that financial interest or signature author See FCEN Form 114 and is instructions for fling requirements and exceptions to those m oments b y you are required to file FCEN Form 114, enter the name of the foreign country where the financial account is located 8 During 2018, did you receive a distribution from or were you the grantorot, or transferorto, a foreign trust? Yes, you may have to Form 3520. See instructions For Paperwork Reduction Act Notice we your tax return instructions B B S 2018 SCHEDULE SE Self-Employment Tax (Form 1040) Go to www.irs.gov/Schedules for instructions and the latest information Department of the Treasury Attach to Form 1040 or Form 1040NR. Name of person with self-employment income as shown onorm 100 or Form TORONR Social security number of person with self-employment income OMB No 1545-0074 2018 Sam 17 Before you begin: To determine if you must file Schedule SE, see the instructions May I Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE.Wunsure, see Who Must File Schedule SE in the instructions Did you receive wages or tips in 2018? Are you a minister member of a religious order or Christian Science practitioner who received IRS aproval not to be taxed on earings from these source, but you owe self-employment Was the total of your wages and tips subject to social security Yes of railroad retirement for tax plus your nel camnings from omployment more than $120.4007 Are you using one of the optional methods to sure your camins instructions Did you receive it to social security or Medicare tax that you didn't report to your employer Did you receive church employee income seestructions reported on Form W201 $108.28 or more? Yes Did you report any wages on Form 1919. Uncollected Social Security and Medicare Taxon Wage? NO You may use Short Schedule SE below You must use Long Schedule SE on page 2 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Netfarm profit or loss from Schedule F, line 34, and farm partnerships Schedule K-1 (Form 1005), box 14, code A. . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F. line 4b, or listed on Schedule K-1 (Form 1065), box 20. code AM 2 Net profit or loss) from Schedule C, line 31: Schedule C-EZ, line 3: Schedule K-1 (Form 1065 box 14, code A (other than farming and Schedule K-1 (Form 1065-8), box 9, code Jl. Ministers and members of religious orders. see instructions for types of income to report on this line. See Instructions for other income to report. . . 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . Multiply line 3 by 92.35% (0.9235). If less than $400. you don't owe self-employment tax don't file this schedule unless you have an amount on line 1b. . . . . . . . Note: if ne 4 is less than $400 due to conservation Reserve Program payments on line 1b. see instructions Self-employment tax. If the amount on line 4 is: $128.400 or less multiply line 4 by 15 3% 10.153) Enter the result here and on Schedule 4 (Form 1040), line 57, or Form 1040NR line 55 . More than $128.400, multiply line 4 by 2.9% 0.029. Then, add $15.92160 to the result Enter the total here and on Schedule 4 (Form 1040), line 57. or Form 1040NR. line 55. 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% 0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27. For Paperwork Reduction Act Notice. see your tax return instructions. Cat No 11:35AZ 5 Schedule SE (Form 1040 2018 Sched Form 100 2018 Section B-Long Schedule SE Part I Self-Employment Tax Note your only income subject t employment axis church employee Income se ctions. Also Sestructions for the definition of church employee income A you are a minister member of a religious order, or Christian Science practitioner and you sed Form 1961, but you had $400 or more of other tearings from s cmployment check here and continue with Parti ta Netfarm profit or from Schedule F. line 34 and far partnerships Schedule K-1 Form 1065 box 14 code A NoteSkip lines Ta and Tb you use the tarm optional method is instructions b you received social security rement or disability benesterse amount of Conservation Reserve Program payments included on Schedule Fine or listed on Schedule 1 Fom 106.box20code AH10 Net profit or loss from Schedule C, line 31: Schedule CEZ line 3: Schedule K-1 Form 1065) box 14 code A other than farming and Schedule K-1 Form 1055-B box 9 code J1 Ministers and members of religious orders. See instructions for types of income to report on this line. See instructions for other income to report. Note: Skip this line you use the nonform optional method instructions . . . . . . . . . . . . 3 Combine lines talb, and 2. . - - - - da line 3 is more than zero, multiply line 3 by 92.35% 0.9235) Otherwise, enter amount from line 3 4 Note: line is loss than $400 due to Conservation Reserve Program payments on the se instructions If you elect one or both of the optional methods, enter the total of lines 15 and 17 there Combine lines 4a and 4b. If less than $400. stops you don't owe self-employment tax Exception: If less than $400 and you had church employee income, antr-o and continue 5o Enter your church employee income from Form W-2. See Instructions for definition of church employee income. Sa Multiply line 5a by 92.35% 10.9235). less than $100, enter-O-.-.-.- 6 Add lines and 5b . . . - - 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement tier 1) tax for 2018...... Ba Total social security wages and tips total of boxes 3 and 7 on Form(s) W-2) and r oad retirement tier 1) compensation I $128,400 or more, skip lines b through 10, and go to line 11 8 b Unreported tips subject to social security tax from Form 4137, line 10 8 c Wages subject to social security tax from Form 1919, line 10 8 d Add lines Ba, b, and Bc 9 Subtract lined from line 7. If zero or less enter-O- here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124. - - 11 Multiply line 6 by 2.9% (0.029). . . 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 4 Form 10401. line 57, or Form 1040NR, line 55 ... 13 Deduction for one-half of self-employment tax Multiply line 12 by 50% 10.50). Enter the result here and on Schedule 1 Form 1040), line 27, or Form 1040NR, line 27 13 Part II Optional Methods To Figure Net Earnings see instructions Farm Optional Method. You may use this method only all your gross tam income wasn't more than $7.920, or bl your netfarm profits were less than $5.717. 14 Maximum income for optional methods . . 15 Enter the smaller of two-thirds of gross farm income not less than er or $5.280. As include this amount online above Nontarm Optional Method. You may use this method o f your morto s an $ 717 and also than 72.180 of your gross moram income and you had teringsfo loyment of $400 in 2 of the prior 3 years Caution. You may use this methodno more than Semes 16 Subtract line 15 from line 14. 17 Enter the smaller ottwo-thirds of gross nonform income not less than or the amount on line 16. Also include this amount online above. - FromSoFine and Se K-1 fotobox 14.de from Finland S K-1 for 1065x14 amount you would have done had you not from Sonnet Scies -1 Fm 106514. Aand SK For Tobox.code - the optional Schem 00018