Jacob Weaver is a contractor operating as a sole proprietorship (EIN12-3456789). 2019 Gross income: $278,322.25.

• Business expenses:
• Fuel for equipment $64,080.00
• Repairs and maintenance $17,342.00
• Lubricants for Equipment $9,670.00
• Insurance $6,500.00
• Wages $6,300.00
• Vehicles $1,768.00
• Legal and Professional Expenses $1,750.00
• Taxes and Licenses $1,412.00
• Advertising $300.00
• Clients owe him a total of $53,000, for work completed in 2019.
• 2019 estimated tax payments were $25,000.
• He is using a bedroom in his house as a home office. (Square footage of home 5,600 Office 240 sq. ft.)
• He has one half-time employee, Martin, who had been unemployed since returning from Afghanistan and is disabled.
• Martin worked for Jacob for 20 hours a week, for 41 weeks of 2019. He earned $10,500.
• Jacob had to spend $7,350 for disabled access equipment for Martin.

Instructions

Complete the following:

• Read the information provided in the scenario above.
• Download the appropriate forms and publications from IRS.gov to complete this assessment.
• Complete the entries on tax forms required for a sole proprietorship return.
• Analyze official rules and instructions to correctly compute SE tax and SE deduction.
• 1040sc.
• 1040sse.
• Determine whether Jacob's business is eligible for any tax credits. Is Jacob's business eligible to use the Work Opportunity Credit and Disabled Access Credit?
• Determine eligible business deductions.
• Interpret official rules and instructions to record correct entries on tax forms.
• Submit the tax forms