Dear Associate: Sandra Bartholomew, C.P.A. Accounting and Tax Services Nancy Kelly requested that our firm prepare her 2022 federal income tax return. Nancy, age 40, is single and has no dependents. She is employed as a career consultant by Careers R Us. Also, she owns and operates Resume Builders located near the campus of Michigan State University at 1505 Wolf Court, East Lansing, 48823. She is a cash basis taxpayer and lives at 2303 Kathy Lane, Williamston, MI 48895. Nancy's Social Security number is 399-42-8648. During 2022, Nancy reported the following income and expense items connected with her employment and other income-producing activities. $80,000 salary from Careers are Us. $10,500 commissions from Careers are Us for placement services. $550 interest income from Michigan State University Credit Union. $1,000 from Careers R Us for employee of the month award $50,000 life insurance proceeds on the death of her mother. $5,000 check given to her by her brother when he hit the lottery. Nancy reported the following income and expense items connected with her resume drafting business. at Predictions: On Receipts from drafting resumes $35,000 Rent for office and furniture 5,000 Advertising in Student News 500 Paper, ink and other supplies. 2,300 Gas and electric 3,580 Part-time student assistants 3,000 Payroll taxes 600 Computer and equipment rental 3,450 In addition, Nancy also reported the potentially tax-related items to the firm $9,500 interest expense on a home mortgage. $1,200 medical and dental expenses. $354 refund of state income taxes paid last year, when Nancy claimed the standard deduction on her return. $20,000 from sale of marketable securities on November 17, held as an investment. The securities were inherited from her wealthy uncle, who died when the fair market value of the securities was $21,000. The uncle purchased the securities in 1990 for $10,700. Careers R Us withheld Federal income tax of $12,500 and the appropriate amount of FICA tax from her wages. Interest income of $600 on City of Detroit bonds. A personal use computer acquired last year for $4,000 was stolen on March 24, when its fair market value was $2,500. Nancy made estimated Federal tax payments of $3,500. $500 received on a K-1, indicating her share of a short-term gain from a partnership she formed with her brother to provide student housing. Property taxes on her residence of $4,200. Charitable contribution of $1,500 to Michigan State University. $35,000 from sale of land on July 18. The land was received as a property settlement after divorcing her husband, when the land's fair market value was $30,000. His basis for the land, purchased on January 10, 2005, was $18,600. A membership card for a prestigious country club was sold for $8,500 on August 14. The card was acquired on October 3, 1998, for $6,000. Please don't hesitate to reach out with questions or concerns. Thanks. Sandra Focus

Sandra Daveholances, PS,A. $9,500 iterest mopense on a home mortgage. Cccousting and Sax Sneices $1,700 mediral and demal expenses $354 returid of state income tames paid lact year, when Nancy claimed the standard deduction in her refurn. Dear Asocime: $20,000 from sole of marketable securities on Nowember 17, held as an Nancy Kelly tequented that our fran prepare her 2022 federal income tas setum investment. The securities were inherited from her weatfy unde, who died Nancy, age 40 , is single and hos no dopendents. She is empleyed as a career when the fair market velue of the secureies was 521,000 . The uncle purchased comsultant by Careers B UL. Alio, she owns and operates ferume Bulders located the securities in 1990 for 510,700 . her the campon of Michigan State Uiveruity at 150 W Woll Court, taM Lanine. 48823. She in a conh hasis taspover and lives at 2303 Kathy Lane, Willamiton MI Careers R Us whtheld federal inrome tak of 51,300 and the approgriate \$8896. Nancy's Social Security mienber is 399-42. 6548 aneunt of hich tak from bet wigei interest income of $500 on Cly of Oetroit bonde. During 2023, Nancy teported the following income and experse itemn connected A pervenal ine compuat aceised last vear for $4,000 was sholes on March 24, with hes employrest and other income producting activities. when its fal market value was 52,500 . Nancy mabe estimated federal tax paymects of 53,500. sto.000 sitary frencareris are th. 510,500 commiwions from Casers are Us for flacement servires $5 so inteiest incore frons Michiean Sate Uneruty Gredit thion. partseeship she formed with her truther to gecvide studeet hoving $1,000 foam Carees 1i is for employee of the month award Property tanes on her trudence of 4,200 $50,000if insurante proceeds on the death of her mothet. Chariatle centribution of 51,500 to Michigan Gate Univervity. 55,000 check given to her by her brother when be ha the lottery 5.5,000 from sin of land on suly is. The land was ieceived a a propertr settement attec divorcing ther husband when the band's fair market value was Nancy reported the folowirg inceme and eipense items tannected wish her \$10,000. His bawi for the land, parchased os lanuary 10, J005, was 518,600 . tesime tratine buenes. A menderahip card for a prestigous country chub win sold for 59,500 on Aupyu 14. The card was acqured ce october 3, 197a, for $6,000 Please don't hevitate to reash out with questions of concerns. Thank3. Sandua In addition, Noncy alse reported the potentully tax ielated items to the firm Sandra Daveholances, PS,A. $9,500 iterest mopense on a home mortgage. Cccousting and Sax Sneices $1,700 mediral and demal expenses $354 returid of state income tames paid lact year, when Nancy claimed the standard deduction in her refurn. Dear Asocime: $20,000 from sole of marketable securities on Nowember 17, held as an Nancy Kelly tequented that our fran prepare her 2022 federal income tas setum investment. The securities were inherited from her weatfy unde, who died Nancy, age 40 , is single and hos no dopendents. She is empleyed as a career when the fair market velue of the secureies was 521,000 . The uncle purchased comsultant by Careers B UL. Alio, she owns and operates ferume Bulders located the securities in 1990 for 510,700 . her the campon of Michigan State Uiveruity at 150 W Woll Court, taM Lanine. 48823. She in a conh hasis taspover and lives at 2303 Kathy Lane, Willamiton MI Careers R Us whtheld federal inrome tak of 51,300 and the approgriate \$8896. Nancy's Social Security mienber is 399-42. 6548 aneunt of hich tak from bet wigei interest income of $500 on Cly of Oetroit bonde. During 2023, Nancy teported the following income and experse itemn connected A pervenal ine compuat aceised last vear for $4,000 was sholes on March 24, with hes employrest and other income producting activities. when its fal market value was 52,500 . Nancy mabe estimated federal tax paymects of 53,500. sto.000 sitary frencareris are th. 510,500 commiwions from Casers are Us for flacement servires $5 so inteiest incore frons Michiean Sate Uneruty Gredit thion. partseeship she formed with her truther to gecvide studeet hoving $1,000 foam Carees 1i is for employee of the month award Property tanes on her trudence of 4,200 $50,000if insurante proceeds on the death of her mothet. Chariatle centribution of 51,500 to Michigan Gate Univervity. 55,000 check given to her by her brother when be ha the lottery 5.5,000 from sin of land on suly is. The land was ieceived a a propertr settement attec divorcing ther husband when the band's fair market value was Nancy reported the folowirg inceme and eipense items tannected wish her \$10,000. His bawi for the land, parchased os lanuary 10, J005, was 518,600 . tesime tratine buenes. A menderahip card for a prestigous country chub win sold for 59,500 on Aupyu 14. The card was acqured ce october 3, 197a, for $6,000 Please don't hevitate to reash out with questions of concerns. Thank3. Sandua In addition, Noncy alse reported the potentully tax ielated items to the firm