I need help filling out the tax forms mentioned in the attachment. I have also given what the AGI, and net loss on Schedule C should be. Forms are available at the IRS website. Thanks
Russell (age50) and Linda (age45) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited. The business is operated out of their home, located at 1234 Katy Rd., TX 77493. Russell Long had the following income and expenses from the landscaping business: Income Expenses: Business Insurance Office Supplies Payroll Payroll Taxes Meals and Entertainment Contract Labor Maintenance Equipment Rent Telephone Business Gifts ( no gift over $22) Special clothing and safety shoes Subscription to Green Lawns and magazine Education seminar on bug control Other Expenses $132,000 3,800 2,600 83,000 8,100 2,350 7,290 8,300 12,300 2300 770 600 120 350 1,830 The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition the above expenses, the Longs have set aside one room of their house as a home office. The room is 150 square feet and their house has a total of 1,500 square feet. They pay $12,000 per year rental on their house, and the utilities amount to $3,000 for the year. The Longs also have the following interest income for the year: Interest from Morgan Bank bond portfolio $42,520 The Longs have two dependents children, Bill (Social Security number 123-23-7654) and Martha (Social Security 345-67-8654). Both Bill and Martha are full-time high school students, ages 17 and 18, respectively, so they do not qualify for the child credit. Russell social Security number is 664-98-5678 and Linda's is 554-98-3946. They made an estimated tax payment to the IRS of $4,500 on April 15, 2013. Required: Complete the Long's federal tax return for 2013 Use Form 1040, Schedule B, Schedule C and form 8829 on pages 3-57 to 3-63 and any other appropriate schedules to complete this tax return. Do not complete from 4562 (depreciation) . Make a realistic assumptions about missing data. AGI should be 42,384 Schedule C should be a net loss of -135
