Question
Kelly enjoys playing guitar and plays in a band. Kellys band has developed a local following. This year, his gross revenues were $1,200 for playing
Kelly enjoys playing guitar and plays in a band. Kellys band has developed a local following. This year, his gross revenues were $1,200 for playing shows and $700 on CD sales. He incurred the following expenses: Studio rent expense Sound system repairs CD production New guitar and amplifier $1,300 200 500 800 Kellys father passed away during the year. Kelly and Chanelle received $100,000 from the life insurance policy. Neither Kelly nor Chanelle paid any of the premiums. Chanelle purchased 100 shares of Thurston Co. stock on May 1, 1993, for $1,000. Thurston Co. was declared bankrupt during the current year. Chets physician recommended that he see a physical therapist to help with his dis-ability. Kelly paid the therapist $7,000 during the year because his insurance would not cover the bills. Kelly and Chanelle went to Las Vegas and won $5,000 at the blackjack table. The next night, they lost $6,000. Kelly and Chanelle gave $900 to their church and, during the year, they had the fol-lowing other income and expenses: Real estate taxes Property taxes on car (determined by value) Home mortgage interest Credit card finance charges Tax return preparation fees ($600 is allocable to Chanelles business) Sales tax on purchases during the year Interest from a savings account Interest from City of Boston Bonds Dividend from 3M stock $1,400 500 9,000 2,600 1,000 6,200 800 700 400
1 please file out the 2021 form 1040 with this information
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