John is single and does not have any dependents. John works for a local advertising company and then owns his own business selling custom drink insulators John earned taxable wages of $92,000 and $23,000 of federal income tax was withheld for 2021 John, arch bass taxpayer, provide the following for his business Revenue $ 130,000 Expenses Advertising Business meals with customers at restaurants Contribution to political party Donation to American Heart Association (cash to charitable organization) Dues to country Club to play Roll Federal estimated tax payments Health insurance employee) $ 750 $ 400 $ 3,200 S 3,000 $ 4,100 $ 56,000 $ 3,200 $ 3,600 $ 2.300 S 450 $ 1.500 $ 2,100 $ 6,000 Health insurance (John) Interest expense on business loan Late filing penalty Legal fees Liability insurance ufe Insurance expense" Liability insurance Life insurance expense ** Owner draws (distribution) Payroll tax (employees Rent equipment 2,100 S 6,000 $ 14,000 $ 3,200 $ 5,800 $ 1,700 $ 5,000 $ 1,825 $ 42,000 Repairs equipment Tax Depreciation Travel *** Wages to employees Total Expenses $ (160,125) Net Income $ (30,125) - John is not eligible to be covered under an employee-sponsored plan. ** The business purchased a life Insurance policy for Sohn. The total premium paid was $4,000 and the business is the beneficiary of the policy. The company ako provides policies for the employees. The employees determine the beneficiaries of their policies, and no employees have listed the business as a beneficiary, The cost to the business for the policies covering the employees is $2,000. *** The business purchased some equipment in previous years and the current year tax depreciation on the equipment was $5,000. There were no additional assets placed into service during 2021. The business purchased some equipment in previous years and the current year tax depreciation on the equipment was $5.000. Then weren additional assets placed into service during 2021 **** John attended a conference in Augustin Dallas. The conference was for 2 days 17 nights) and John stayed an additional day and night go offer with some friends. John incurred the following experes related to the trip Airfare - $250 each way Lodgin-5200 per night are price for single and double occupancy Meals at restaurant $125 per day Conference istration - 5125 Gothing green fees $225 John delivers product to customers' homes using his personal truck. He elects to use the standard mileage rate to calculate the auto expense deduction (SMR for 2021 is $0.56 per mile), John provided the following information 1,500 miles for business 11,000 total miles driven John has a home office where he manages his business. The home office measures 444 square feet and the entire home is 3,700 square feet Depreciation 53.550 Home more interest $1,300 Insurance -primary residence $1,850 Heal Estate Ta-primary residence $3,800 Iepairs and maintenance $1.500 Utili 57.500 John's business qualities for the section 19 Deduction for Qualified Business Income of $15.500 During 2021. John sold the following business use assets Acquired Accum. Depr Date Sold Sales Price Land 15/2015 10/20/2021 $125,000.00 25.000.00 Building 3/15/2015 10/20/2021 $425,000.00 150.000.00 5.000.00 201 $70,000.00 Acquired Cost Acoum. Depr Date Sold Sales Price Land 9/15/2015 10/20/2021 $125,000.00 75.000,00 Huilding W15/2015 10/20/2021 $425,000.00 350,000.00 65,000.00 Equipment 5/1/2017 9/1/2021 $70,000.00 B0,000.00 50,000.00 Machinery 9/1/2021 11/15/2021 $165,000.00 130,000.00 75,000.00 Computer 6/15/2018 8/15/2021 $1,200.00 3,000.00 638,000.00 1,500.00 191,500.00 786,200.00 In 2019, John recognized a net Sec. 1231 loss of ($35,000). John received the following additional income in 2021: $1,800 - dividends (non qualified) from corporate bond $450-interest from checking account $800 - interest from municipal bond $78,000 - inheritance from deceased uncle $8.500 - net short term capital gain $4,000 - gambling winnings (losses of $10,000) ($16,000) - Loss from Great Partnership (material participant; Tax and At Risk Basts $28,000) John reported the following personal expenses for 2021 Out-of-pocket medical expenses - $6,400 Sales Tax $3,500 Calculate the taxpayer's gross income, adjusted gross income taxable income tax liability, any applicable credits, and tax due or refund amount for 2021 (please ignore the Alternative Minimum Tax and Net Investment Income Tax) John is single and does not have any dependents. John works for a local advertising company and then owns his own business selling custom drink insulators John earned taxable wages of $92,000 and $23,000 of federal income tax was withheld for 2021 John, arch bass taxpayer, provide the following for his business Revenue $ 130,000 Expenses Advertising Business meals with customers at restaurants Contribution to political party Donation to American Heart Association (cash to charitable organization) Dues to country Club to play Roll Federal estimated tax payments Health insurance employee) $ 750 $ 400 $ 3,200 S 3,000 $ 4,100 $ 56,000 $ 3,200 $ 3,600 $ 2.300 S 450 $ 1.500 $ 2,100 $ 6,000 Health insurance (John) Interest expense on business loan Late filing penalty Legal fees Liability insurance ufe Insurance expense" Liability insurance Life insurance expense ** Owner draws (distribution) Payroll tax (employees Rent equipment 2,100 S 6,000 $ 14,000 $ 3,200 $ 5,800 $ 1,700 $ 5,000 $ 1,825 $ 42,000 Repairs equipment Tax Depreciation Travel *** Wages to employees Total Expenses $ (160,125) Net Income $ (30,125) - John is not eligible to be covered under an employee-sponsored plan. ** The business purchased a life Insurance policy for Sohn. The total premium paid was $4,000 and the business is the beneficiary of the policy. The company ako provides policies for the employees. The employees determine the beneficiaries of their policies, and no employees have listed the business as a beneficiary, The cost to the business for the policies covering the employees is $2,000. *** The business purchased some equipment in previous years and the current year tax depreciation on the equipment was $5,000. There were no additional assets placed into service during 2021. The business purchased some equipment in previous years and the current year tax depreciation on the equipment was $5.000. Then weren additional assets placed into service during 2021 **** John attended a conference in Augustin Dallas. The conference was for 2 days 17 nights) and John stayed an additional day and night go offer with some friends. John incurred the following experes related to the trip Airfare - $250 each way Lodgin-5200 per night are price for single and double occupancy Meals at restaurant $125 per day Conference istration - 5125 Gothing green fees $225 John delivers product to customers' homes using his personal truck. He elects to use the standard mileage rate to calculate the auto expense deduction (SMR for 2021 is $0.56 per mile), John provided the following information 1,500 miles for business 11,000 total miles driven John has a home office where he manages his business. The home office measures 444 square feet and the entire home is 3,700 square feet Depreciation 53.550 Home more interest $1,300 Insurance -primary residence $1,850 Heal Estate Ta-primary residence $3,800 Iepairs and maintenance $1.500 Utili 57.500 John's business qualities for the section 19 Deduction for Qualified Business Income of $15.500 During 2021. John sold the following business use assets Acquired Accum. Depr Date Sold Sales Price Land 15/2015 10/20/2021 $125,000.00 25.000.00 Building 3/15/2015 10/20/2021 $425,000.00 150.000.00 5.000.00 201 $70,000.00 Acquired Cost Acoum. Depr Date Sold Sales Price Land 9/15/2015 10/20/2021 $125,000.00 75.000,00 Huilding W15/2015 10/20/2021 $425,000.00 350,000.00 65,000.00 Equipment 5/1/2017 9/1/2021 $70,000.00 B0,000.00 50,000.00 Machinery 9/1/2021 11/15/2021 $165,000.00 130,000.00 75,000.00 Computer 6/15/2018 8/15/2021 $1,200.00 3,000.00 638,000.00 1,500.00 191,500.00 786,200.00 In 2019, John recognized a net Sec. 1231 loss of ($35,000). John received the following additional income in 2021: $1,800 - dividends (non qualified) from corporate bond $450-interest from checking account $800 - interest from municipal bond $78,000 - inheritance from deceased uncle $8.500 - net short term capital gain $4,000 - gambling winnings (losses of $10,000) ($16,000) - Loss from Great Partnership (material participant; Tax and At Risk Basts $28,000) John reported the following personal expenses for 2021 Out-of-pocket medical expenses - $6,400 Sales Tax $3,500 Calculate the taxpayer's gross income, adjusted gross income taxable income tax liability, any applicable credits, and tax due or refund amount for 2021 (please ignore the Alternative Minimum Tax and Net Investment Income Tax)