Home-2021.pdf 1/5 98% + Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2020 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with the following information regarding their 2020 upcoming tax return: 1) Tony Nelson is an aerospace engineer he runs an engineering firm, Nelson Engineering (NE), as a sole proprietorship since 2010. a) NE has very lucrative contracts with numerous aerospace companies and during 2020 it earned $652,000. b) NE rents an office downtown where they meet with clients and conducts business. The rent includes all utilities. NE paid $38,000 in rent expense in 2020. In December 2020 the landlord offered to maintain the same yearly rent cost and Tony could receive an additional month's rent for free if he prepaid his 2021-year rent in advance. Tony agreed and paid an additional $38,000 on December 1, 2020 to cover January 2021 through January 2022 rent. c] NE obtained a business loan from SunTrust Bank and paid $2,400 in prepaid interest for July 1, 2020 through June 30, 2021. d) NE has a few employees, including an electrical engineer, a part-time engineering intern and an office manager. The combined wages for these employees were $187,000. Payroll taxes including for these employees is $15,000. e) Tony took different business clients to see several home Miami Heat games during January and February of 2020 followed by dinners at nearby restaurants where business was discussed. The meals were not considered lavish. The total cost for the Heat tickets and accompanying meals were $900 and $700, respectively