John Hoyle is 32 years old and single. John has no dependents and is the sole owner of Hoyle Accounting Services, Co. He started the company, which is organized as a sole proprietorship, on February 10^th of the current year. For this year Hoyle Accounting Services reported the following amounts of income and expenses:

Fee Revenue $950,000

Employee Wages $125,000

Payroll Taxes $9,563.00

Advertising $3,600.00

Insurance $2,400.00

Utilities $7,200.00

Rent $10,000.00

Supplies $5,000.00

Selling Expenses $35,000.00

John purchased a car on February 1^st of the current year for $44,000.00. He uses the car for both business and personal purposes. John keeps mileage logs, and this indicates that he put 40,000 miles on the car this year. Of the total, 28,000 miles were business related and the remaining 12,000 were related to personal travel. John wants to deduct the maximum amount allowable for business use of his car. John also purchased office equipment, computers and other five-year property for use in the business. He purchased $625,000.00 worth of such depreciable assets in March. He wants to deduct the maximum amount allowable under Code Sec. 179 and depreciate the remaining cost if any using bonus and MACRS depreciation. Selling expenses included $6000.00 spent for meals and entertainment incurred on Johns sales calls during the year. Selling expenses also included $12,000.00 in illegal payments to city officials paid to secure a lucrative contract with the city. John was uncomfortable making this payment but reasoned that the contract was important to get his business off to a good start. Selling expenses also include gasoline, parking fees and documented auto expenses totaling $2,500.00, which was attributable to Johns sales calls. During the year John got very ill and had to travel to a different city for medical treatment. John was concerned about the treatment and asked his father to travel with him, John and his father stayed for seven days to receive treatment. John incurs $1000.00 in transportation costs, $800.00 in motel costs and $240.00 for meals. Since March of 2021 John needs to take medicine which his doctor prescribed and costs $135.00 per month. John owns his own house, which he is very proud of. When he purchased it, the house needed repair, so he estimates that he has put $15,000.00 worth of work into it. He currently pays $1715.00 a month in which 40% is mortgage interest. His real estate taxes are paid separately and cost $9,600.00 a year. He has a home office where he meets clients and preforms his work when the weather is bad. His house is about 1800 square feet and his home office space is about 100 square feet. His utilities cost him about $3600.00 for the year.

Assume that John reports the revenue and expenses of Hoyle Accounting Services on Schedule C, that he uses the cash method of accounting. Skipping Schedule SE (on which you would ordinarily calculate the self-employment tax) and based on the information given prepare Johns 2021 Individual Income Tax Return.