Question
Fred Flintstone is a new client during tax year 2018. He is single and has no dependents, nor can he be claimed as a dependent
Fred Flintstone is a new client during tax year 2018.
He is single and has no dependents, nor can he be claimed as a dependent by anyone else. Fred has perfect vision.
Social Security number: 473-01-2233.
Date of birth: 10/10/1990.
Address: 222 Main Street Hastings MN 55033.
President election: Yes.
State estimate payments: $2,000.
Federal estimated payments: $4,000.
He is a self-employed maid who purchased health insurance for the entire year which cost $13,000. Fred contributed $2,000 to his traditional IRA account and $3,000 to his Roth IRA account. He also paid $1,000 for a pair of prescription eye glasses and $2,000 for qualified dental expenses. He had no other medical expenses during 2018.Fred Flintstone has $10,000 of long-term capital gain on stock (ABC Stock purchased 10/10/10 and sold 10/10/18).He earned $2,000 of interest income from the Vermillion State Bank. He has no foreign bank accounts nor foreign investments.
Fred Flintstone maid service is owned and operated 100% by Fred.During the year Fred earned $50,000 of gross income and incurred the following expenses which he has adequately documented:
Supplies: $12,000
Cell phone (IRC Sec 179 deduction): $1,200
100% Business internet usage: $1,200
Cell phone (monthly bill100% business usage): $150
Annual advertising: $2,400
Work mileage:20,000 miles (odometer 1/1/2018 0 miles and 12/31/18 20,000 miles).Fred only drives during work hours.He walks everywhere else.
Cost to park during work engagements: $575
Fred wants to statutory rate for his home office: 500 square feet
The client has Schedule1 items; a Schedule4 item; a Schedule5 item; several itemized deductions (Schedule A); interestincome (Schedule B); is self-employed (Schedule C); a capital gain (Schedule D); deprecation (Form 4562). Completeall Schedules and forms listed as well as others you deem necessary.
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