Kennedy Prisby, age 33, is single and has no dependents. Her social security number is 111-22-3333. Her address is 101 North Fork Ave., Cedar City, UT 84720. She has no intention of donating to the Presidential Election Campaign.

She is a professional hunting guide. In January of the current year she opened an office located at 3001 Westcliffe Dr., Cedar City, UT. She worked out of her home in prior years. She has free full-year health care coverage. The name of her business is Trophy Bucks Galore. She is a cash basis taxpayer who materially participates in her business. She is not required to file any Forms 1099. The business activity code for this activity is 114210.

During the year she recorded the following income and expenses from Trophy Bucks Galore:

Guide fees $55,000

Tips from clients $10,000

Office rent $12,000

Supplies $3,000

Insurance $1,000

Advertising $1,500

Business travel meals $3,000

Business travel lodging and transportation $5,000

This year Kennedy purchased computer equipment for $3,000 and office furniture for $5,000 for her new office. If possible, she would like to elect to immediately expense the entire cost of these items using section 179. She also has an off-road vehicle used 100% in her business. She purchased it for $20,000 and placed it into service last year. She uses the 5-year 200% Double Declining MACRS cost recovery method and the Half Year Convention to depreciate the vehicle. Last year depreciation rate was 20% and the 2nd year rate is 32%. Assume the listed property rules do not apply.

She also made estimated quarterly tax payments of $1,500 per quarter for a total amount of $6,000. If she is entitled to a refund, she would like to have it applied to her next years tax liability.

Kennedys other income includes the following. Loss from the sale of Oopsy Inc. stock. She acquired 100 shares on June 30th five years ago for $11,000 and sold the 100 shares on August 1st of the current year for $6,000. She received a 1099-B which was reported to the IRS. She received qualified dividends from Hippie Inc. in the amount of $4,000. She earned interest income from a mutual fund at FBB Bank in the amount of $3,000.

Kennedys personal expenses include:

Medical $2,000

Residential property tax $1,265

Mortgage interest $2,700

Church donations (cash) $2,300

1. Complete the tax formula spreadsheet following this template:

Income (broadly defined)

Less: Exclusions

Gross Income

Less: Deductions for AGI

AGI

Less: greater of standard or itemized deductions

Less: qualified business income deduction

Taxable income

Tax (calculate the tax using 2020 tax rate schedule found in Appendix A of the text or at IRS.gov, make sure to calculate tax on preferred items separately)

Less: Tax withheld/credits

Tax due (refund)