If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his Schedule C net profit or loss? $34,650/ $34,953/ $35,018 / $37,674. If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his deduction? $648 /$743 /$2,576 /$2,957.What is the total amount of gain or loss that Blake recognizes from the disposition of his business assets? $118 /$18 /($82) /($100)

H&R BLOCK Tax Analyst Certification - Case Study 1 Prepare a return using BlockWorks in PRACTICE mode. Access and use the BlockWorks shell return by entering the following four-digit code: 6101. A unique SSN will be generated by the software. Be sure to note this unique shell SSN so that you will be able to re-access this return Prepare a 2017 Schedule C (Form 1040) for Blake. Any of Blake's information that is not associated with the Schedule C (Form 1040) has already been entered for you. Blake wants to determine if using actual expenses for his home office deduction provides the best outcome. Therefore, prepare returns using both the simplified method and the actual expenses for the office-in-home (OIH) deduction After return preparation has been completed, return to the test and answer the associated questions. Taxpayer name: Taxpayer SSN Blake J. Steele XXX-XX-6101 SSN Taxpayer DOB: Health care coverage February 18, 1967 12 months through the individual market 0 months of no coverage 5762 Peyton Lane Your City, YS XXXXX Address Living arrangement: Cell phone Taxpayer rents his home (xxx) 555-6101; Preferred, OK to call anytime, FCC consent given Taxpayer email: bjsteele@net.net Taxpayer occupation Blake is single. His SSN is valid for work in the U.S. and was received before the original filing due date of his return (including extensions). He is a U.S. citizen. No one may claim him as a dependent. Blake does not wish to designate $3 to the Presidential Election Campaign Fund. He is not blind or disabled. He is not a student. He did not provide his driver's license or state identification Financial Planner Blake does not have authority over a foreign account in excess of $10,000. He did not receive a distribution from, nor was he the grantor of or transferor to, a foreign trust. He consents to the use of his tax return information for other products and services. He has not received a notice from the IRS or any state or local taxing authority within the last year. The IRS has not issued an ldentity Protection ID Number for his return. Household Information In April 2017, Blake won a $15,000,000 State Lottery. His Form W-2G is included in his information documents. He paid personal property tax of $549 on his 2015 Jeep Grand Cherokee, and contributed a total of $750,000 cash to various charities (he has appropriate documentation for the contributions). Business Information For several years, Blake owned and operated a financial planning business, BJS Financial, from his home. It is a sole proprietorship, reported on Schedule C (Form 1040), Because he won the State Lottery, he closed his business, and on April 10, 2017, he sold all the items he had been depreciating for his home business He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business Gross receipts Expenses: $36,960 Advertising: Business insurance: Business licensc: Comprchensive health insurance (entire ycar) Office supplies Postage: Rent (entire year): Renter's insurance (entire year): Second phone line, exelusively for business: Tax preparation (allocated to business) Utilities (entire year) $80 $685 S100 $7,788 S76 $38 $14,400 $1,055 $103 S350 S2,281 There was no carryover of unallowed expenses. There was no Section 179 expense deduction taken for any of the assets that were sold April 10, 2017. Depreciation includes bonus depreciation, when available. All assets were 100% business use Item New computer New printer Used desk and chairs Date in Service June 15, 2014 June 15, 2014 June 15, 2014 Basis $1,750 S350 $1,200 Prior Depreciation $623 $125 $675 Blake disposed of his business assets in the following manner: Computer - Sold for $220 Printer - Junked at the hazardous waste center. . Used desk and chairs - Sold for $390. The cost of Blake's comprehensive health insurance policy was $649 monthly. Blake's information documents follow. Information Documents RRECTHOul check 2017 Federel Ieceme ts wthwd Form W-2G Certain Gambling Winnings 04/01/2017 YB LOTTERY PO Box 201659 YOUR CITY, ya xxxxx 15,000,000.00 6,000,000.00 Transection 59-5900059 This information is being funished the internal Revenue Service 1123) 555-6101 11 First1D. J. STEELE SS XXX-xX-6101 DL YS59006101 14 3tae winenge Copy B Report this income nyour feder al tax return. N this fore shows tederal income 5762 PEYTON LANE X0959000059 s 15,000,000.00 YOUR CITY,YS XEX 1.500,000.00 3 box 4, attach this copy to your relurn Rignalur4 on W-2G Depatmene of the Treasry- Inberal Poverue Service 5b3116 1095-B CORRECTED! 04 spons bh 5762 PITO LARE intermatioen About en Covered individuals Ener tre i forriton tr .achcoweod iddday x11 | ||| ' Test - Tax Analyst Certification Test (2018) Schedule C Case Study Scenario Questions Case Study Scenario Information The following scenario information will be used to complete a return using contained in the document link below the detailed information ADOBE POF Click here to open the Case Study scenario document (this will open in a new window) Question 70 of 75. If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his Schedule C net profit or loss? $34,650 o $34.953 $35,018 $37,674 L Mark for follow up Question 71 of 75 What is the total amount of gain or loss that Blake recognizes from the disposition of his business assets? O $118 O $18 O ($82) O ($100) LMark for follow up Question 72 of 75 If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his deduction? $648 O$743 O $2,576 O $2,957 Mark for follow up Back Save/ Return Later Summary Next H&R BLOCK Tax Analyst Certification - Case Study 1 Prepare a return using BlockWorks in PRACTICE mode. Access and use the BlockWorks shell return by entering the following four-digit code: 6101. A unique SSN will be generated by the software. Be sure to note this unique shell SSN so that you will be able to re-access this return Prepare a 2017 Schedule C (Form 1040) for Blake. Any of Blake's information that is not associated with the Schedule C (Form 1040) has already been entered for you. Blake wants to determine if using actual expenses for his home office deduction provides the best outcome. Therefore, prepare returns using both the simplified method and the actual expenses for the office-in-home (OIH) deduction After return preparation has been completed, return to the test and answer the associated questions. Taxpayer name: Taxpayer SSN Blake J. Steele XXX-XX-6101 SSN Taxpayer DOB: Health care coverage February 18, 1967 12 months through the individual market 0 months of no coverage 5762 Peyton Lane Your City, YS XXXXX Address Living arrangement: Cell phone Taxpayer rents his home (xxx) 555-6101; Preferred, OK to call anytime, FCC consent given Taxpayer email: bjsteele@net.net Taxpayer occupation Blake is single. His SSN is valid for work in the U.S. and was received before the original filing due date of his return (including extensions). He is a U.S. citizen. No one may claim him as a dependent. Blake does not wish to designate $3 to the Presidential Election Campaign Fund. He is not blind or disabled. He is not a student. He did not provide his driver's license or state identification Financial Planner Blake does not have authority over a foreign account in excess of $10,000. He did not receive a distribution from, nor was he the grantor of or transferor to, a foreign trust. He consents to the use of his tax return information for other products and services. He has not received a notice from the IRS or any state or local taxing authority within the last year. The IRS has not issued an ldentity Protection ID Number for his return. Household Information In April 2017, Blake won a $15,000,000 State Lottery. His Form W-2G is included in his information documents. He paid personal property tax of $549 on his 2015 Jeep Grand Cherokee, and contributed a total of $750,000 cash to various charities (he has appropriate documentation for the contributions). Business Information For several years, Blake owned and operated a financial planning business, BJS Financial, from his home. It is a sole proprietorship, reported on Schedule C (Form 1040), Because he won the State Lottery, he closed his business, and on April 10, 2017, he sold all the items he had been depreciating for his home business He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business Gross receipts Expenses: $36,960 Advertising: Business insurance: Business licensc: Comprchensive health insurance (entire ycar) Office supplies Postage: Rent (entire year): Renter's insurance (entire year): Second phone line, exelusively for business: Tax preparation (allocated to business) Utilities (entire year) $80 $685 S100 $7,788 S76 $38 $14,400 $1,055 $103 S350 S2,281 There was no carryover of unallowed expenses. There was no Section 179 expense deduction taken for any of the assets that were sold April 10, 2017. Depreciation includes bonus depreciation, when available. All assets were 100% business use Item New computer New printer Used desk and chairs Date in Service June 15, 2014 June 15, 2014 June 15, 2014 Basis $1,750 S350 $1,200 Prior Depreciation $623 $125 $675 Blake disposed of his business assets in the following manner: Computer - Sold for $220 Printer - Junked at the hazardous waste center. . Used desk and chairs - Sold for $390. The cost of Blake's comprehensive health insurance policy was $649 monthly. Blake's information documents follow. Information Documents RRECTHOul check 2017 Federel Ieceme ts wthwd Form W-2G Certain Gambling Winnings 04/01/2017 YB LOTTERY PO Box 201659 YOUR CITY, ya xxxxx 15,000,000.00 6,000,000.00 Transection 59-5900059 This information is being funished the internal Revenue Service 1123) 555-6101 11 First1D. J. STEELE SS XXX-xX-6101 DL YS59006101 14 3tae winenge Copy B Report this income nyour feder al tax return. N this fore shows tederal income 5762 PEYTON LANE X0959000059 s 15,000,000.00 YOUR CITY,YS XEX 1.500,000.00 3 box 4, attach this copy to your relurn Rignalur4 on W-2G Depatmene of the Treasry- Inberal Poverue Service 5b3116 1095-B CORRECTED! 04 spons bh 5762 PITO LARE intermatioen About en Covered individuals Ener tre i forriton tr .achcoweod iddday x11 | ||| ' Test - Tax Analyst Certification Test (2018) Schedule C Case Study Scenario Questions Case Study Scenario Information The following scenario information will be used to complete a return using contained in the document link below the detailed information ADOBE POF Click here to open the Case Study scenario document (this will open in a new window) Question 70 of 75. If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his Schedule C net profit or loss? $34,650 o $34.953 $35,018 $37,674 L Mark for follow up Question 71 of 75 What is the total amount of gain or loss that Blake recognizes from the disposition of his business assets? O $118 O $18 O ($82) O ($100) LMark for follow up Question 72 of 75 If Blake elects to use actual office-in-home (OIH) expenses, what is the amount of his deduction? $648 O$743 O $2,576 O $2,957 Mark for follow up Back Save/ Return Later Summary Next