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Frederick Freeweights (age 42) owns and operates a health club called Treadmills West. The business is located at 4321 Arnold Street, Alpine, CA 91901. Freddy
Frederick Freeweights (age 42) owns and operates a health club called Treadmills West. The business is located at 4321 Arnold Street, Alpine, CA 91901. Freddy had the following income and expenses from the health club: Income: 214900 Expenses: Business Insurance 3,800 Office Supplies 3335 Payroll 97,200 Payroll Taxes 9180 Travel 2420 Equipment & maintenance 10666 cleaning service 8500 equipment rent 22820 telephone 2780 utilities 13975 rent 30000 advertising 4750 special workout clothing and boxing gloves 750 subscription to biceps monthly magazine 120 educational seminar on weight training 775 other expenses 1830 The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. Freddy has the following interest income for the year: Bank savings: 12831 Bank bond: 10825 Freddy has been a widower for 10 years with a dependent song, Arnold, and he files his tax return as a head-of-household. Arnold is an 18 year old high school student; he does not qualify for the child credit. They live next door to the health club. Freddy does all of the administrative work for the health club out of an office in his home. The room is 150 sq ft out of the house total of 1800. Freddy pays 20,000 for rent and 4,000 in utilities. Freddy made an estimated tax payment to the IRS of 1,000 on April 15, 2010. Required: Complete Freddys federal tax return for 2010. Use Form 1040, Schedule B, Schedule C, Form 8829, and Schedule M. Use any other appropriate schedules to complete this tax return. Do not complete a Form 4562. Make realistic assumptions about any missing data
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