Question
I need help!! This is the fourth part of a six part problem that will allow you to prepare the 2014 tax return for Laurie
I need help!!
This is the fourth part of a six part problem that will allow you to prepare the 2014 tax return for Laurie and Lynn Norris. As with the previous parts, this part of the problem will ask you to prepare a portion of their tax return. You should complete the appropriate portion of each form or schedule indicated in the instructions. The following basic information is provided for preparing their 2014 tax return:
1. Lynn Norris is the sole proprietor of an Internet business (Handy Hints) that provides handyman advice and tips for do-it-yourself home improvement projects. The site also serves as a portal for those looking for reputable contractors that provide a wide variety of home repair services. Lynn has also compiled his advice in an Ebook that is sold via his website. For the current year, he has the following revenue and expenses:
Revenue from advertising on his site $45,000
Revenue from referrals 27,450
Revenue from book sales8,700
Home improvement conference registration 4,500
Travel to conferences1,250
Hotels420
Meals 190
Accounting fees 1,200
DSL Internet fees1,850
Legal fees 625
One-time development costs with Ebook 6,800
Office supplies 240
Advertising on other sites 4,000
2. Both Laurie and Lynn contribute the maximum amount to their Individual Retirement Accounts.
3. Lynn enrolled in an advanced Java course at the local community college. The tuition was $1,100. The software and textbook for the course cost was $225.
Required: Based on the information provided above, only fill out the appropriate portions of Form 1040 and finish Form 1040 Schedule C, Form 1040 Schedule SE, and Form 8829. Lynn's employer ID number is 05-7861342 and his principal business code is 541990.
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