Duck Ball (ss 111-22-3333) owns a supply business called "Clean Nest' he owns it as a sole proprietor and has no employees so no EIN. He operates out of his home located at 3 Nest Street Delhi, NY 13753 and all of his investment is at risk. Duck presents you with the following information and asks you to prepare his schedule C and other appropriate forms as Looney Bird, his significant other, did them last year (2018) and he was fined for failure to pay appropriate taxes. He asks you to give him the least taxable income possible in 2019. "Clean Nest" total revenues - $140,100.00, $100.00 of which was penalties received for late payment of bills to customers. The rest of the revenue is derived from the selling of cases of hand cleaner and sanitizer at $100.00 or more a case. His cost for these cases is $20.00 a case. He uses a truck for the business which logged 42,000 miles in 2019 of which 22,000 were personal miles with no commuting miles. He knows this because he keeps a written log of all business miles. He bought the truck on January 1, 2015 for $31,000.00 and has used it in the business logging 30,000 business miles in 2015 and 20,000 in 2016 all of which were deducted from his business income using the IRS standard mileage rate for those years. Che meets suppliers and customers in a basement family room where he also stores inventory. In it he keeps his business records and checking account information for the business along with billing documents, the room used to be used by his daughters to fool around with boyfriends but they are grown up and gone dealing with their children's friends. So family room is used exclusively for the business. The family room is 15 by 18 while the living space of the entire house is 1800 square feet. 10 After meeting with suppliers, he often takes them out to eat and drink. The cost of all those teals was $8,250.00. He takes his family out to dinner every Wednesday night, this costs him $110.00 per night. Ho bought a state-of-the-art electronie label maker he uses for shipping labels on January 2, 2019 for $5,400.00 and a computer used only in the business for $2,000.00 on June 5, 2019, the life of label maker is 7 years and the computer is 5 years Suppliers and customers while waiting to see Duck often sit in the 600 square foot living room watching the family TV, which cost $2,000.00, or staring at the artificial fire in the stone fireplace which cost over $15,000.00. This use of the living room annoys Duck's grandson as he cannot use the room when they are in there forcing him to watch a non-HD TV in Ducks' bedroon. Here is a list of additional expenses and possibly necessary information: Duck filed all required 1099's and he has a car. Opening inventory 450 cases of hand cleaner and sanitizer (valued at cost), 2900 cases of hand cleaner and sanitizer purchased during 2019 and closing inventory 500 cases of hand cleaner and sanitizer (valued at cost). There were no returns or allowances. Fee for small business consultant for preparation of his business plan $500.00 Rent for a strapping machine $600.00 a month. B1 Computer repaire $55.00. 90.00 25 A monthly cell phone bill of $10000 that he uses 00$ for business purposes. Advertising $1,444.00. 3829 Real estate taxes on his home $4,555. * Mortgage interest for his home reported to him on a form 1099 in the amount of $6,700.00. Interest paid on his credit card used only to buy supplies and services for the business $122.00 Electric bill for home, $2,050. Oil bill for home furnaco $6,550.00. Homeowners insurance $1,900.00 $200,00 of which is a rider (additional charge) because he uses the house for business Product liability insurance $19,000.00 Gas for his car and truck $1,901.00. He bought the home in 2015 for $120.000.00, the land it stands on was worth $20,000.00. On December 31, 2019 it was given a fair market value of $230,00.00. The life of business nonresidential real property is 39 years. General business supplies $422.00. Prepare Duck's Schedule C using the simplified method of calculating business use of home. Next prepare a schedule SE using the figures from the Schedule C. Finally prepare a forn 8829. There is no need to create another schedule CON SE using the expense use of home results from the form 8829. Send the completed forms by e-mail to me by 5:00pm today or mail it with today's postmark. Be sure the e-mail picture or attachment can be read. Mailing address: c. Mole 148 Sanford Hall SUNY Delhi Delhi Drive Delhi, NY 13753 Duck Ball (ss 111-22-3333) owns a supply business called "Clean Nest' he owns it as a sole proprietor and has no employees so no EIN. He operates out of his home located at 3 Nest Street Delhi, NY 13753 and all of his investment is at risk. Duck presents you with the following information and asks you to prepare his schedule C and other appropriate forms as Looney Bird, his significant other, did them last year (2018) and he was fined for failure to pay appropriate taxes. He asks you to give him the least taxable income possible in 2019. "Clean Nest" total revenues - $140,100.00, $100.00 of which was penalties received for late payment of bills to customers. The rest of the revenue is derived from the selling of cases of hand cleaner and sanitizer at $100.00 or more a case. His cost for these cases is $20.00 a case. He uses a truck for the business which logged 42,000 miles in 2019 of which 22,000 were personal miles with no commuting miles. He knows this because he keeps a written log of all business miles. He bought the truck on January 1, 2015 for $31,000.00 and has used it in the business logging 30,000 business miles in 2015 and 20,000 in 2016 all of which were deducted from his business income using the IRS standard mileage rate for those years. Che meets suppliers and customers in a basement family room where he also stores inventory. In it he keeps his business records and checking account information for the business along with billing documents, the room used to be used by his daughters to fool around with boyfriends but they are grown up and gone dealing with their children's friends. So family room is used exclusively for the business. The family room is 15 by 18 while the living space of the entire house is 1800 square feet. 10 After meeting with suppliers, he often takes them out to eat and drink. The cost of all those teals was $8,250.00. He takes his family out to dinner every Wednesday night, this costs him $110.00 per night. Ho bought a state-of-the-art electronie label maker he uses for shipping labels on January 2, 2019 for $5,400.00 and a computer used only in the business for $2,000.00 on June 5, 2019, the life of label maker is 7 years and the computer is 5 years Suppliers and customers while waiting to see Duck often sit in the 600 square foot living room watching the family TV, which cost $2,000.00, or staring at the artificial fire in the stone fireplace which cost over $15,000.00. This use of the living room annoys Duck's grandson as he cannot use the room when they are in there forcing him to watch a non-HD TV in Ducks' bedroon. Here is a list of additional expenses and possibly necessary information: Duck filed all required 1099's and he has a car. Opening inventory 450 cases of hand cleaner and sanitizer (valued at cost), 2900 cases of hand cleaner and sanitizer purchased during 2019 and closing inventory 500 cases of hand cleaner and sanitizer (valued at cost). There were no returns or allowances. Fee for small business consultant for preparation of his business plan $500.00 Rent for a strapping machine $600.00 a month. B1 Computer repaire $55.00. 90.00 25 A monthly cell phone bill of $10000 that he uses 00$ for business purposes. Advertising $1,444.00. 3829 Real estate taxes on his home $4,555. * Mortgage interest for his home reported to him on a form 1099 in the amount of $6,700.00. Interest paid on his credit card used only to buy supplies and services for the business $122.00 Electric bill for home, $2,050. Oil bill for home furnaco $6,550.00. Homeowners insurance $1,900.00 $200,00 of which is a rider (additional charge) because he uses the house for business Product liability insurance $19,000.00 Gas for his car and truck $1,901.00. He bought the home in 2015 for $120.000.00, the land it stands on was worth $20,000.00. On December 31, 2019 it was given a fair market value of $230,00.00. The life of business nonresidential real property is 39 years. General business supplies $422.00. Prepare Duck's Schedule C using the simplified method of calculating business use of home. Next prepare a schedule SE using the figures from the Schedule C. Finally prepare a forn 8829. There is no need to create another schedule CON SE using the expense use of home results from the form 8829. Send the completed forms by e-mail to me by 5:00pm today or mail it with today's postmark. Be sure the e-mail picture or attachment can be read. Mailing address: c. Mole 148 Sanford Hall SUNY Delhi Delhi Drive Delhi, NY 13753