Jay and JoAnn Jefferson are married and have a joint consulting business. The business taxable income of $100,000 for 2016 and they both take $35,000 out of the business to live on and leave $26,000 in the business to expand. Here are the business revenue and expenses:

Consulting revenue $256,000

Salaries expense, employees 100,000

Payroll tax expense 18,000

Owners Draw 70,000

Rent expense 12,000

New Computer equipment (total cost) Claim section 179 deduction 10,000

Travel expense 4,000

Health Insurance (employees) 6,000

Health Insurance (owners) 4,000

Meals 2,000

Supplies 5,000

Tax return 3: Assuming Jay and JoAnn have this same business that they run as a partnership, prepare their joint Federal income tax return for 2016. Attached is the copy of the partnership K-1 for each of them. Assume that they have no dependents, do not have any other income or itemized deductions, and they made quarterly Federal income tax payments totaling $24,000. Dont forget to include a standard deduction and personal exemptions. You should complete a Schedule E (page 2), Schedule SEs, Form 4562, and a Form 1040.