John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, Califomia 90102. John, a single taxpayer age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information includes: $94,000 $21,000 $500 $450 $50,000 Earnings from his consulting business: Taxable pension Interest income treasury bonds) Interest income (municipalbeeds) Life insurance payment to John (John was a beneficiary on his father's life insurance policy and received a lump sum payment equal to the policy face value) Personal Expenses (from Schedule A (see below*)) Other expenses (from Schedule C (see below **)) Gain or Loss on sale of a house (see below *** Tax Withholdings (prepayments) $7,000 $ 4500 $ 2,770 S 830 Personal expenses Doctor visits for physical and dental exams - Prescription drugs Vitamins Medical insurance premium payments - Cosmetic surgery to improve appearance State and local income taxes - State property taxes Legal fees to prepare a will - Accounting fees for Form A analysis Interest on mortgage used to purchase qualified residence; the mortgage amount is $350,000) $10.500 $ 6.650 $ 8,000 $ 4.500 $ 2,500 $ 1,300 $12,250 **Other expenses S10,000 $ 3,000 - Legal fees for business conflict resolution - Political contributions to local organization - Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 - Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) Airfare $1.600 Hotel - $150 per night Meals - $50 per day - - Lunches and dinners with customers to discuss business Continuing education to retain John's license 54,600 $ 800 *** Gain or loss (short term or long term) on the house sale: - John purchased a house in May 2006 for $300,000 - He added basement for $30,000 . He repainted roof for $3,000 - He repaired 3 broken doors (but not the home office door) for $2.000 John sold the house in February 2019 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000 Depreciation allowed and taken as a business expense: $70,000 Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2019