file schedule C

8-41 Depreciation and Amortization COMPREHENSIVE PROBLEM 27. Patrick A. and Danielle R. Beckman file a joint return for 2018, The Beckmans rent a three- bedroom apartment located at 529 w. Maywood #4. Aurora, IL 60505. They provide over half of the support for Danielle's mother, Ellen Tvler (SSN 384-58-7338), who qualifies as their dependent. Ellen lives in a nursing home in Peoria, Illinois. The Beckmans claim their 20-year-old daughter, Tara (SSN 487-58-3957) as a dependent. Tara lives with the Beckmans while attending college full-time. Danielle (SSN 394-59-3948) works full-time for an advertising firm. Through her employer. Danielle gets full health care insurance coverage for her family In 2018, Danielle's taxable wages were $59,000, from which her emplover withbeld $6.000 in federal income taxes $3.869 in social security taxes, $905 in Medicare taxes, and $1,020 in state income taxes. Danielle is an active participant in her employer's 401 (k). During the year. Danielle contributed $3,400 to her 4010k). Danielle and Parick each contributed $1,500 to their respective traditional IRAS for 2018 Patrick (SSN 549-82-2497) is self-employed. He began his carpet cleaning business in 2015. The business code for Schedule C (line B) is 812990. Patrick uses the spare bedroom in the apartment solely and exclusively as a home office to perform administrative tasls. The bedroom is 220 square feet in size. The square footage of the entire apartment is 1,800 square feet. Patrick elects to use the safe harbor method to compute his home office deduction. Patrick uses the cash method. During the year, his business income was $18,000, and he paid $1.828 for cleaning chemicals and supplies, $300 for advertising, and $50 for office expenses. On September 10, 2017, Patrick purchased carpet-cleaning equipment for $14,762. This was the only depreciable property placed in service in 2017. The equipment is 5-year property. Patrick did not elect Section 179 in 2017. He did take bonus depreciation and uses regular MACRS to depreciate the equipment. On June 8, 2018. Patrick purchased video equipment for $1,600 and a printer for $400. Assume this equipment is 5-year property also with a 5-year ADS period. Patrick uses the video equipment and printer 40 % for business and 60 % for personal use. Patrick has written evidence to support the 40% business use. The video equipment and printer were Patrick's only acquisitions in 2018. Patrick uses his van to get to and from customers' homes. During the year Patrick drove his van 1,797 miles for business. He keeps a written log as evidence of these miles. Total miles for the vear on the van were 10,540. Danielle has her own car that she uses to get to and from work. Patrick bought the van on March 5, 2013. He used the standard mileage method in 2018. Patrick incurred no business-related parking or tolls in 2018. Prepare the Beckmans' Form 1040 and accompanying Schedules C and SE, and Form 4562 Be sure to complete lines 30-36 on Form 4562. Neither Patrick nor Danielle want $3 to go to the Presidential election campaign fund. The Beckmans sign their return on April 15, 2019. Disregard any deduction for qualified business income that Patrick is entitled to claim on line 9 of Form 1040. 8-41 Depreciation and Amortization COMPREHENSIVE PROBLEM 27. Patrick A. and Danielle R. Beckman file a joint return for 2018, The Beckmans rent a three- bedroom apartment located at 529 w. Maywood #4. Aurora, IL 60505. They provide over half of the support for Danielle's mother, Ellen Tvler (SSN 384-58-7338), who qualifies as their dependent. Ellen lives in a nursing home in Peoria, Illinois. The Beckmans claim their 20-year-old daughter, Tara (SSN 487-58-3957) as a dependent. Tara lives with the Beckmans while attending college full-time. Danielle (SSN 394-59-3948) works full-time for an advertising firm. Through her employer. Danielle gets full health care insurance coverage for her family In 2018, Danielle's taxable wages were $59,000, from which her emplover withbeld $6.000 in federal income taxes $3.869 in social security taxes, $905 in Medicare taxes, and $1,020 in state income taxes. Danielle is an active participant in her employer's 401 (k). During the year. Danielle contributed $3,400 to her 4010k). Danielle and Parick each contributed $1,500 to their respective traditional IRAS for 2018 Patrick (SSN 549-82-2497) is self-employed. He began his carpet cleaning business in 2015. The business code for Schedule C (line B) is 812990. Patrick uses the spare bedroom in the apartment solely and exclusively as a home office to perform administrative tasls. The bedroom is 220 square feet in size. The square footage of the entire apartment is 1,800 square feet. Patrick elects to use the safe harbor method to compute his home office deduction. Patrick uses the cash method. During the year, his business income was $18,000, and he paid $1.828 for cleaning chemicals and supplies, $300 for advertising, and $50 for office expenses. On September 10, 2017, Patrick purchased carpet-cleaning equipment for $14,762. This was the only depreciable property placed in service in 2017. The equipment is 5-year property. Patrick did not elect Section 179 in 2017. He did take bonus depreciation and uses regular MACRS to depreciate the equipment. On June 8, 2018. Patrick purchased video equipment for $1,600 and a printer for $400. Assume this equipment is 5-year property also with a 5-year ADS period. Patrick uses the video equipment and printer 40 % for business and 60 % for personal use. Patrick has written evidence to support the 40% business use. The video equipment and printer were Patrick's only acquisitions in 2018. Patrick uses his van to get to and from customers' homes. During the year Patrick drove his van 1,797 miles for business. He keeps a written log as evidence of these miles. Total miles for the vear on the van were 10,540. Danielle has her own car that she uses to get to and from work. Patrick bought the van on March 5, 2013. He used the standard mileage method in 2018. Patrick incurred no business-related parking or tolls in 2018. Prepare the Beckmans' Form 1040 and accompanying Schedules C and SE, and Form 4562 Be sure to complete lines 30-36 on Form 4562. Neither Patrick nor Danielle want $3 to go to the Presidential election campaign fund. The Beckmans sign their return on April 15, 2019. Disregard any deduction for qualified business income that Patrick is entitled to claim on line 9 of Form 1040