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I need help filling out Form 1040, Schedule 1, Schedule 5, Schedule B, Schedule C and Form 8829 using the following information. Thanks. Comprehensive Problem

I need help filling out Form 1040, Schedule 1, Schedule 5, Schedule B, Schedule C and Form 8829 using the following information. Thanks.

Comprehensive Problem 3-2B

Christopher Crosphit (age 42) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190. Chris had the following income and expenses from the health club:

Income: $216,100

Expenses:

Business insurance 3,665

Office supplies 3,295

Payroll 98,900

Payroll taxes 9,112

Travel 2,420

Equipment & club maintenance 10,720

Cleaning service 8,775

Equipment rent 22,820

Utilities (electric, water, gas) 13,975

Telephone 2,778

Rent 32,590

Advertising 5,200

Special workout clothing and boxing gloves 780

Subscription to Biceps Monthly magazine 120

Educational seminar on weight training 770

Other expenses 1,830

The business uses the cash method of accounting and has no accounts receivable or inventory held for resale.

Chris has the following interest income for the year:

Upper Piedmont Savings Bank savings account $12,831

Morgan Bank bond portfolio interest 12,025

(You may assume that the bond portfolio interest is from corporate bonds.)

Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and he files his tax return as head of household. Arnold is an 18-year-old high school student; he does not qualify for the child tax credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities.

Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $1,000 on April 15, 2018.

Required:

Complete Form 1040, Schedule 1, Schedule 5, Schedule B, Schedule C and Form 8829 for Chris. Assume the taxpayer had full-year health coverage and does not want to contribute to the presidential election campaign.

  • Do not complete Form 4562 (depreciation). Make realistic assumptions about any missing data.
  • If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers.
  • If an amount box does not require an entry or the answer is zero, enter "0".
  • Round any percentages to two decimal places.
  • Round any dollar amounts to the nearest dollar.

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