Find Personal Expenses (from Schedule A (see below*)) Other expenses (from Schedule C (see below **)) Gain or Loss on sale of a house (see below ***)

Other relevant information includes:

Earnings from his consulting business: $95,000 Taxable pension $21,000 Interest income (treasury bonds) $500 Interest income (municipal bonds) $450 Life insurance payment to John $50,000 (John was a beneficiary on his fathers life insurance policy and received a lump sum payment equal to the policy face value)

* Personal expenses:

- Doctor visits for physical and dental exams $ 4,500 - Prescription drugs $ 2,770 - Vitamins $ 830 - Medical insurance premium payments $10,500 - Cosmetic surgery to improve appearance $ 6,650 - State and local income taxes $ 8,000 - State property taxes $ 4,500 - Legal fees to prepare a will $ 2,500 - Accounting fees for Form A analysis $ 1,300 - Interest on mortgage used to purchase qualified residence; the mortgage amount is $350,000) $12,250

** Other expenses:

- Legal fees for business conflict resolution $10,000 - Political contributions to local organization $ 3,000 - Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 - Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) Airfare $1,600 Hotel - $150 per night Meals - $50 per day - Lunches and dinners with customers to discuss business $4,600 - Continuing education to retain Johns license $ 800

*** Gain or loss (short term or long term) on the house sale: - John purchased a house in May 2006 for $300,000 - He added basement for $40,000 - He repainted roof for $3,000 - He repaired 3 broken doors (but not the home office door) for $2,000 - John sold the house in February 2019 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000. - Depreciation allowed and taken as a business expense: $70,000

John, a single taxpayer, age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office.

Complete Individual Federal Income Tax Return (Form 1040)