Janice Morgan, age 24, is single and has no dependents She is a freelance writer In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135 She called her business Writers Anonymous Janice is a cash basis taxpayer She lives at 132 Stone Avenue, Pleasant Hill, NM 88135 Her Social Security number is 123 45 6782 Janice's parents continue to provide health insurance for her under their policy Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund During 2019, Janice reported the following income and expense items connected with her business Income from sale of articles $85,000 Rent 16,500 Utilities 7,900 Supplies 1,800 Insurance 5,000 Travel (including meals of $1,200) 3,500 Janice purchased and placed in service the following fixed assets for her business Janice wants to elect immediate expensing under 179, if possible Furniture and fixtures (new) costing $21,000 on January 10 Computer equipment (new) costing $12,400 on July 28 Janices itemized deductions include State income tax $2,950 Home mortgage interest paid to First National Bank 6,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 Janice did not keep a record of the sales tax she paid The amount allowed by the sales tax table is $437 Janice reports interest income of $4,000 on certificates of deposit at Second National Bank She made estimated tax payments of $3,000 for 2019 Gross income $85,000 Total Expenses 67,500 File Form 8950 10 Qualified business income deduction before the income limitation Add lines 5 and 9 10 11 Taxable income before qualified business income deduction 11 12 Net capital gain (see instructions) 12 13 Subtract line 12 from line 11 If zero or less, enter O 13 14 Income limitation Multiply line 13 by 20 (0 20) 14 15 Qualified business income deduction Enter the lesser of line 10 or line 14 Also enter this amount on the applicable line of your return DDD 15 16 Total qualified business (loss) carryforward Combine lines 2 and 3 If greater than zero, enter O 16 17 Total qualified REIT dividends and PTP (loss) carryforward Combine lines 6 and 7 If greater than zero, enter o 17 BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions Form 8995 (2019)

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Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019, Janice opened her own office located at

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6782. Janice's parents continue to provide health insurance for her under their policy. Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund.

During 2019, Janice reported the following income and expense items connected with her business.

Income from sale of articles	$85,000
Rent	16,500
Utilities	7,900
Supplies	1,800
Insurance	5,000
Travel (including meals of $1,200)	3,500

Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect immediate expensing under 179, if possible.

Furniture and fixtures (new) costing $21,000 on January 10
Computer equipment (new) costing $12,400 on July 28

Janices itemized deductions include:

State income tax	$2,950
Home mortgage interest paid to First National Bank	6,000
Property taxes on home	2,500
Charitable contribution to her alma mater, State College	1,200

Janice did not keep a record of the sales tax she paid. The amount allowed by the sales tax table is $437. Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. She made estimated tax payments of $3,000 for 2019.

Gross income: $85,000

Total Expenses: 67,500

File Form 8950

image text in transcribed

10 Qualified business income deduction before the income limitation. Add lines 5 and 9 10 11 Taxable income before qualified business income deduction 11 12 Net capital gain (see instructions). 12 13 Subtract line 12 from line 11. If zero or less, enter -O- 13 14 Income limitation. Multiply line 13 by 20% (0.20). 14 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return.... DDD 15 16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter-O-.. 16 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, enter -o- ...... 17 BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995 (2019)