1. Josh owns and operates an Office supply business called Dragone office supply store.. His business address is 2555 Grand Ave East Meadow NY

The IRS business code for office supply store is 511222. His tax ID number is 11-8751444 . He operates on the cash basis of accounting.

Prior to 2018 Joshs business purchased the following equipment. Josh did not take a Sec 179 expense deduction for any purchases prior to 18

Color Copy Machines (4) May 2014- 9000 each total $36,000

Computers for customer usage(8) 1000 each total June 2015 $8,000

Motorized inventory conveyor, Sept 2016 $ 9,000

The above equipment should be depreciated using MACRS Convention. The copy machine and computers use 5 years and the Motorized Inventory conveyor is 7 year property.

Cash Registers Jan 2016 5 year MACRS convention $5000

Josh bought shelving for $ 22,000 on November 5, 2018. He decides to elect to take the sec 179 deduction.

Josh bought a new computer in 05/6/18 SH 5 years convention for $1500.

No bonus depreciation is to be taken.

Josh also bought a car used for deliveries on 4/1/18 He elects to take the standard mileage deduction. He drove the car 12000 miles for business (100%) and spent $350 on parking.

The revenue and expenditures for 2018 were as follows:

Be aware, not all expenses are deductible or even belong on schedule C.

Gross Revenue $293100

Supplies (cost of goods) 38,000

Labor Costs (cost of goods) 49,000

Payroll tax expense 7,500

Lease expenses Building 30,500

Lease expenses - Equipment 22,000

East Meadow Firefighters Department 3,000[1] Insurance 9500

Advertising 5,570

Office supplies 1990

Utilities 7,200

Bank charges 600(line 18)

City business licenses 600

State of NY income tax for 2017 2800[2]

Repairs and Maintenance 4,200

Meals and Entertainment 500

Also during 2018 Josh incurred $6050 investigating an opportunity to establish a new office supply store in the Bellmore area. He decided not to open an additional location.

[1] During 2018 Dragone office supply store had several safety violations. James paid $3000 in fines.

[2] This is the balance of taxes due to the State of New York for Josh and Gail 2017 personal income tax return paid on 4/15/18