Jane Smith, age 40, is single and has no dependents She is employed as a legal secretary by Legal Services, Inc She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive Jane is a material participant in the business She is a cash basis taxpayer Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431 Jane's Social Security number is 123 45 6789 Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund During 2011, Jane had the following income and expense items $100,000 salary from Legal Services, Inc $20,000 gross receipts from her typing services business $700 interest income from Acme National Bank $1,000 Christmas bonus from Legal Services, Inc $60,000 life insurance proceeds on the death of her sister $5,000 check given to her by her wealthy aunt $100 won in a bingo game Expenses connected with the typing service $ 7,000 office rent $ 4,400 suppies $ 4,680 utilites and telephone $ 5,000 wages $ 500 payroll taxes $ 3,000 equiptment rentals $9,500 interest expense on a home mortgage (paid to San Jose Savings and Loan) $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2011 Jane had paid $14,000 for the silverware onJuly 1, 2002 She was reimbursed $1,500 by her insurance company Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2008 Joan declared bankruptcy on August 14, 2011, and was unable to repay the loan Assume that the loan is a bona fide debt Legal Services, Inc , withheld Federal income tax of $16,000 and the appropriate amount of FICA taxes from her wages Alimony of $10,000 received from her former husband, Ted Smith Interest income of $800 on City of Boca Raton bonds Jane made estimated Federal tax payments of $1,000 Sales taxes from the sales tax table of $946 Property taxes on her residence of $ 1,100 Charitable contributions of $2,500 In November 2013, Jane was involved in an automobile accident At the time of accident, Jane's automobile has an FMV of $45,000 After the accident it was worth $38,000 Jane's basis in the car was $52,000 Jane's car was covered by insurance, but because the policy has a $5,000 deduction clause Jane decided not to file a claim Part 1

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Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates

Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane's Social Security number is 123-45-6789. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. During 2011, Jane had the following income and expense items:

$100,000 salary from Legal Services, Inc.
$20,000 gross receipts from her typing services business.
$700 interest income from Acme National Bank.
$1,000 Christmas bonus from Legal Services, Inc.
$60,000 life insurance proceeds on the death of her sister.
$5,000 check given to her by her wealthy aunt.
$100 won in a bingo game.

Expenses connected with the typing service:

$ 7,000	office rent
$ 4,400	suppies
$ 4,680	utilites and telephone
$ 5,000	wages
$ 500	payroll taxes
$ 3,000	equiptment rentals

$9,500 interest expense on a home mortgage (paid to San Jose Savings and Loan).
$15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2011. Jane had paid $14,000 for the silverware onJuly 1, 2002. She was reimbursed $1,500 by her insurance company.
Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2008. Joan declared bankruptcy on August 14, 2011, and was unable to repay the loan. Assume that the loan is a bona fide debt.
Legal Services, Inc., withheld Federal income tax of $16,000 and the appropriate amount of FICA taxes from her wages.
Alimony of $10,000 received from her former husband, Ted Smith.
Interest income of $800 on City of Boca Raton bonds.
Jane made estimated Federal tax payments of $1,000.
Sales taxes from the sales tax table of $946.
Property taxes on her residence of $ 1,100
Charitable contributions of $2,500.
In November 2013, Jane was involved in an automobile accident. At the time of accident, Jane's automobile has an FMV of $45,000. After the accident it was worth $38,000.Jane's basis in the car was $52,000. Jane's car was covered by insurance, but because the policy has a $5,000 deduction clause. Jane decided not to file a claim.