Matthew B. (age 42) and Courtney S. (age 41) Mumford are married and live at 11426 W. Antelope Drive, Sioux Falls, SD 57107. Matthew is the manager for The Pour House, a popular bar and grill in Sioux Falls. Courtney is a self-employed architect. They are calendar year, cash basis taxpayers. 1.) Matthew's annual salary from The Pour House is $98,000. He also earns an annual bonus. The amount is determined in late December based on performance during the year and is paid in January of the following year. Matthew's 2018 bonus was $6,000 (received in 2019), and his 2019 bonus was $7,000 (received in 2020). Matthew participates in his employer's group health insurance plan to which he contributed $7,200 in 2019 for medical coverage. These contributions are made with after-tax dollars. The health plan covers Matthew, Courtney, and their two dependent children. The Pour House does not provide any retirement benefits, but it has established a $ 401(k) plan to enable its employees to save for retirement. Matthew contributed $19,000 to the plan in 2019. Matthew commutes to and from work 6 days a week (a roundtrip of 18 miles) in the family SUV. During 2019, Matthew drove the SUV a total of 12,700 miles. 2.)Courtney is a licensed architect who works part time as an architectural consultant. Her professional activity code is 541310. Her major clients are real estate developers (both residential and commercial) for whom she prepares structural designs and construction plans. She also advises on building code requirements regarding the renovation and remodeling of existing structures. Courtney does some of her work at client locations and the remainder in her office at home (see item 3 below). Courtney collected $72,000 in consulting fees during 2019. This total includes a $3,000 payment for work she performed in 2018 and does not include $5,000 she billed in December for work performed in late 2019. In addition, Courtney has a $6,400 unpaid invoice for work done in 2017. This client was convicted of arson in August 2016 and is now serving a 5-year sentence in a state prison Courtney feels certain that she will never collect the $6,400 she is owed. Her business expenses for 2019 are as follows: Drafting supplies.............$4,800 Reproduction materials (e.g., molds, models, photos, blueprints, copies). 3,200 On-site work clothing (e.g., hip boots, safety glasses, safety helmet........860 Professional license fee.........400 Subscriptions to professional journals... ..250 Dues to professional organizations..... ..240 In addition, Courtney drove the family Acura (purchased on June 7, 2018) 940 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2019, Courtney drove the car a total of 10,000 miles. 3.)When the Mumfords purchased their home on February 2, 2017, they set aside 300 square feet (out of a total of 2,400 square feet) of living space for Courtney's office. The Mumfords do not use the simplified method for computing the home office deduction. As of January 1, 2019, the home had an adjusted basis of $240,000 ($40,000 of which is attributable to the land) for purposes of line 37 of Form 8829. The fair market value of the property was $282,000. Relevant information concerning the residence for all of 2019 appears below. Marino Per 3.)When the Mumfords purchased their home on February 2, 2017, they set aside 300 square feet (out of a total of 2,400 square feet) of living space for Courtney's office. The Mumfords do not use the simplified method for computing the home office deduction. As of January 1, 2019, the home had an adjusted basis of $240,000 ($40,000 of which is attributable to the land) for purposes of line 37 of Form 8829. The fair market value of the property was $282,000. Relevant information concerning the residence for all of 2019 appears below. Homeowner's insurance. ..$3,200 Repairs and maintenance.......1,800 Utilities...........6,200 Painting (office area only.........1,250 The cost of Courtney's office furniture and equipment was previously deducted under $ 179 in the years these assets were acquired. On June 29, 2019, she purchased a fireproof file cabinet for $800 to safeguard the blueprints of her structural designs and construction plans. Whenever possible, Courtney prefers to avoid depreciating capital expenditures over time. 4.)One of Courtney's clients was interested in building a shopping center on a tract of land she owned in Lincoln County. Courtney inherited the property from her uncle when he died on June 6, 1999. At that time, the land was valued at $40,000. It has since been rezoned for commercial use and has a current value of $200,000. On February 10,2019, Courtney exchanged the Lincoln parcel for a similar tract in Minnehaha County worth $190,000 and cash of $10,000 5.)On September 2, 2019, Courtney sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from the same uncle who died in 1999 and was valued at $30,000 on June 6, 1999. Under the terms of the sale, Courtney received cash of $20,000 and a note receivable to be paid in four equal installments at 1-year intervals from the date of sale. Each note calls for the payment of $25,000 plus simple Interest of 8%. To the extent allowed by law, Courtney wants to defer recognition of gain for as long as possible. 6.) In early 2018, Matthew learned that one of the restaurant's best servers, Mindy Smith, was suffering domestic abuse at the hands of her husband Billy. When Billy started to abuse their 5-year-old daughter as well. Mindy decided it was time to leave. Before they left on April 14, 2018, Matthew loaned Mindy $5,500 to help her relocate with her daughter. Matthew had her sign an interest-free note due in 1 year. Matthew never heard from Mindy again. In late 2019, Matthew learned that Billy tracked Mindy and their daughter down and killed both of them before committing suicide. Given these tragic circumstances, Matthew has no expectation that the loan will ever be repaid MathamundhirunanidhaM AmilaMANaammanatha Mechanin 7.On August 5, 2017, Matthew purchased 1,000 shares of Farmers Markets America (FMA) common stock for $16 a share as part of its initial public offering. The corporation was formed to establish and operate farmers' markets in mid-size cities throughout the United States. Although some market locations were profitable, the venture as a whole proved to be a failure. In November 2019, FMA's remaining assets were seized by its creditors, and FMA stock became worthless. B.) In addition to the items previously noted, the Mumfords had the following receipts for 2019: Interest income from: General Motors corporate bonds 1900 City of Sioux, SD bonds 1400 Castle Bank Certificate of deposit 210 3510 3100 Qualified dividends from MG&E Inc. Refund from Homestuff 430 Loan repayment 4500 Cash gifts from courtney's parents 32000 2018 federal income tax refund 290 In December 2018, the Mumfords made a major purchase of household items (e.g. appliances, furniture, etc.) at HomeStuff. They called the manager when they realized they did not receive the advertised sale price. Consequently, the store corrected the mistake and sent a $430 refund to the Mumfords in January 2019. Four years ago, Matthew lent his sister Sarah $4,000 to help pay for a honeymoon trip following her wedding to John Caine. Matthew was pleasantly surprised when Sarah paid him back (plus interest of $500) on December 20, 2019. On March 20 of each year, Courtney's parents send a generous gift of cash as a birthday present. Just as she has done for the past 7 years, Courtney immediately invested the cash in her children's $ 529 college savings plans. 9.) The Mumfords had the following expenditures for 2019: Bandcontributions to haditionalURA $600 9.)The Mumfords had the following expenditures for 2019: Courtney's contributions to her traditional IRA Net gamabling loss $6000 1000 Life insurance premiums 2700 Medical and dental expenses not covered by insurance 16612 Taxes: 4100 Ad valorem taxes on personal residence State and local sales taxes from receipts Interest on home mortgage reported on form 1098 2800 6900 4000 Cash contributions: Feeding south dakota (EIN 36-3293534) 1750 South dakota governor's election campaign fund 300 2050 The $1,000 net gambling loss for 2019 is the difference between the Mumfords' gambling winnings of $1,200 and losses of $2,200. The life insurance premiums relate to the universal life insurance policies that Matthew and Courtney own. The first beneficiary on both policies is the other spouse, with the second beneficiaries being the children. Included in the medical expenses are $1,200 incurred in 2018, which were paid in early February 2019. While South Dakota does not impose income taxes on individuals, it does impose sales taxes. The Mumfords can substantiate the $2,800 in sales taxes paid based on their purchase receipts for the year. The local sales tax rate in Sioux Falls is 2%. (Hint: Be sure to check to see if the Optional Sales Tax Tables provide the Mumfords with a greater deduction.) Courtney contributed to the governor's campaign fund because she thinks her influence was key in getting the Minnehaha County land rezoned for commercial use (see item 4 above). 10.)The Mumfords maintain a household that includes their two children, Nickolas (age 16) and Kaleigh (age 19). Nickolas is a junior in high school and a talented wrestler. In hopes of competing at the state tournament, all of his free time is consumed with weight training and wrestling practices, Kaleigh graduated from high school on June 7, 2018, and is undecided about college. She is an accomplished vocalist and during 2019 earned $7,200 performing at various events (eg, weddings, funerals). Kaleigh placed most of her earnings in a savings account for future use and kept only a small amount to spend on herself. 11. Matthew's Form W-2 from The Pour House shows $15,800 withheld for Federal income tax. The Mumfords also made estimated tax payments to the IRS totaling $5,000 for 2019. 12. Relevant Social Security numbers are noted below. Name Social Security Number Matthew B. Mumford 123-45-6786 123-45-6787 Courtney S. Mumford Kaleigh J. Mumford 123-45-6788 Nickolas W. Mumford 123-45-6798 Requirements Prepare an income tax return (with all appropriate forms and schedules) for the Mumfords for 2019, using the following guidelines: The Mumfords choose to file a joint income tax return. The Mumfords do not wish to contribute to the Presidential Election Campaign Fund. The Mumfords do not own any foreign bank accounts or other investments. In addition, the Mumfords do not have any financial interests in virtual currencies. The Mumfords prefer to receive a refund of any overpaid taxes. The taxpayers are preparing their own return (l.e, no preparer is involved). For the past several years, the Mumfords have itemized their deductions from AGL The taxpayers have the necessary substantiation (eg, records, receipts) to support all transactions reported on their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. SCHEDULE A Itemized Deductions Gh15-OON Form 1040 or 1040-S Peway 2000 Go to www.in.gov/Schedule for instructions and the Intest information 2019 Department of the Attach to Form 1040 or 1040-SR. Intere Service Caution: If you are claiming a ne uitled dose loss on Form 484 the instructions for ine 16 SON 07 Nama wow on Form 1040 or 1040 SR Your soclub Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) 1 Dental 2 Enter amount from Form 1040 or 1040-SR, line 86 2 Expenses 3 Mutiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than ine1,enter-O- Taxes You 5 State and local taxes Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. It you elect to include general sales taxes instead of ncome to check this box 5a b State and local real estate taxes instructions) 56 State and local personal property taxes 50 dAdd lines 5 through 5c 5d e Enter the smaller of line 5d or $10,000 (55,000f married filing separately) 5e 6 Other taxes. List type and amount 6 7 Addines Se and 6 Interest 8 Home mortgage interest and points. you didn't use all of your home You Paid mortgage loans to buy build, or improve your home. 300 Caution you Instructions and check this box O ngager Golony a Home mortgage Interest and points reported to you on Form 1098 med See Instructions if limited bHome mortgage Interest not reported to you on Form 1098. See instructions if imited. If paid to the person from whom you bought the home, so instructions and show that person's name, identifying no and address Bb c Points not reported to you on Form 1098 See instructions for special rules Bc d Mortgage insurance premium on Instructions ed Addnes Ba through 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines Be and Gifts to 11 Gints by cash or check. If you made any gift of $250 or more, Charity instructions 11 Caution you madsund 12 Other than by cash or check. If you made any gift of $250 or more. obor see instructions. You must attach Fom 8283 lover $500 12 wenton 13 Carryover from prior year 13 14. Addlines 11 through 13 14 Casualty and 15 Casualty and then from a fooraly declared disaster other than not qualified Theft Losses disaster losses. Attach Form 4684 and enter the amount from line 18 of that form. See Instructions 15 Other 16 Other from lot innstructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the right column for lines through 16. Also enter this amount on Itemized Form 1040 or 1040-SR. Sne 9 17 Deductions 18 If you slect to Hemize deductions even though they are than your standard deduction check this box For Paperwork Reduction Act Notice, see the instruction for Forms 1040 and 1040-SR. Scho 1040-108 SCHEDULEB Form 1040 or 1040-SA) OMEN-ON Interest and Ordinary Dividends Go to www.ins.gov/Schedule for instructions and the latest Information Attach to Form 1040 or 1040-SR. 2019 Dernet of these The Revenue Service Na shown on AR Sen 08 Your social security number Amount Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this Interest Interest first. Also, show that buyer's social security number and address See Instructions and the instructions for Forms 1040 and 1040-SA, Ine 2b) Note: you received a Form 1099-INT, Form 1099-OID, substitute statement from a brokerage firm, at the firm's name as the payer and enter the total interest shown on that tom 2 Add the amounts on line 1 3 Excludable interest on series EE and 1 U.S. savings bonds issued after 1989. Attach Form 8815 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR. Eine 25 Note: If line 4 is over $1,500, you must complete Part III Part II 5 Ust name of payer Ordinary Dividends 2 3 4 Amount Se retruction and the instructions for Forms 1040 and 1040 SR, line 302 5 Note: If you received a Form 1099-ON or substitute statement from a brokerage firm is the firm's name the payer and enter the ordinary dividends shown on that form 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3 6 Note: If line 6 is over $1,500. you must complete Part Part III You must complete this part if you (a) had over $1.500 of table interest or ordinary dividends had a foreign account or (c) received a distribution from, or were grantorot, or a transferorto, a foreign trust Yes No Foreign 7a At any time during 2019, did you have a financial terest in or signature authority over a financial Accounts account such as a bank account, securities account, or brokerage account located in a foreign and Trusts country? See instructions Caution "Yes," are you required to fill FinCEN Form 114. Report of Foreign Bank and Finance required tour Accounts FBAR, to report that financial interest or nature authority See FinCEN Form 114 to le FNGEN and its instructions for filing requirements and exceptions to those requirements Form 114 may you are required to file FCN Form 114, enter the name of the foreign country where the oltin tubstantial financial account is located Donate 8 During 2019, did you receive a distribution from or were you the grantor of or transferorto, a Instruction foreign trust? If "Yes, you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, so your tax return instruction GMIN Schedule Form 1040 1040-2019 SCHEDULEC Profit or Loss From Business OMB No 1545-0074 (Form 1040 or 1040-SA) (Sole Proprietorship) 2019 Go to www.irs.gov/Schedule for instructions and the latest Information Department of the Treasury Attachment Intel Pene Service Attach to Form 1040, 1040-SR. 1040-NR, or 1041; partnerships generally must file Form 1065. Sen Ne 09 Name of proprietor Social security number ISSN Principal business or profession, including product or service see instructions) 8 Enter code from instruction C Business name. If no separate business name, love blank D Employer lumbar (EN) WOOD BBD e 11 21 E Business address including suite or room no) City, town or post office, state, and ZIP code F Accounting method: (1) Cash (2) Accrual (3) Other (spoty G Did you materialy participate in the operation of this business during 2019?if "No," see instructions for limit on fosses Yes No H if you started or acquired this business during 2019, check here 1 Did you make any payments in 2019 that would require you to file Formis) 10997 se instructions Yes No M"Yes" did you or will you file required Form 10907 Yes No Part I Income 1 Gross receipts or sales See Instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee box on that form was checked 1 2 Rotuma and allowances 2 3 Subtractine 2 from line 1 3 4 Cost of goods sold from line 42 4 5 Gross profit. Subtract line 4 from line 3 5 6 Other income, including federal and state gaoine or fuel tax credit or refund ( Instructions 6 7 Gross income. Add lines 5 and 6 7 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expenses instructions 18 9 Car and truck expenses 19 Pension and profit-sharing plans 19 Instructional 20 Rent or lose instructions 10 Commissions and toes 10 a Vehicles, machinery and equipment 20a Contract labore instructions 11 bOther business property 200 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part 6 22 expense deduction (not included in Part 10 23 Tame and license 23 Instructional 13 24 Travel and meals 14 Employee benefit programs a Travel 24 other than on line 19) b Deductible meals 15 Insurance other than 15 Instructions 16 Interest instructions 25 Ur 25 Mortgage paid to barks, etc) 16a 26 Wagen (es employment credits 26 Other 160 278 Other expenses (from line 48 27a 17 Local and professionale 17 D Reserved for future se 270 28 Total expenses before expenses for business use of home Add lines through 27a 28 Tentative profit or() Subtract line 25 from line 7 29 30 Expenses for business use of your home. Do not report these expenses where. Attach Form 3820 unless using the simplified methods instructional Simplified method flere only enter the total square footage of your home and the part of your home used for business Use the Sired Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or loss). Subtract lines from line 29 . If a profit, enter on both Schedule 1 Form 1040 or 1040-5R), line 3 for Form 1040-NR. line 13) and on Schedule SE, line 2 of you checked the box on line 1, so instructional Estates and 31 trusts, enter on Form 1041, line 3 If a loos, you must go to ine 32 32 If you have a loss, check the box that describe your investment in this activity ontructions . If you checked 320, enter the loss on both Schedule 1 Form 1040 or 1040-5, line 3 for Form 1040-NR, line 13, and on schedule SE, line 2. of you checked the box on in 1, see the line 32 All Investment is tik 31 instruction Eats and trusts, enter on Form 1041, line 3 326 Some investments If you checked 32 you must attach Form 6190. Your ou may be limited ak For Paperwork Reduction Act Notice, see the separate instructions Cat No. 113 She Form 1040 1040-5) 2012 14 b % Page 2 Schedule Form 1040 or 1040-SR, 2019 Part III Cost of Goods Sold (see instructions) 33 34 Methods used to value closing Inventory a Cost b Lower of cost of market Other attach explanation Was there any change in determining quantities, costs, or valuations between opening and closing inventory? "Yes." attach explanation. D Yes No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation 35 36 Purchases less cost of items withdrawn for personal use 36 37 Cost of labor. Do not include any amounts paid to yourself 37 38 Materials and supplies 30 39 Other costs 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and online 42 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 43 44 When did you place your vehicle in service for business purpose? (month day, year) of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for Business Commuting (see Instructions c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 40 Do you for your spouse) have another vehicle available for personal use? Yes DDD No Yes No 47. Do you have evidence to support your deduction? b"Yes," is the evidence written Party Other Expenses. List below business expenses not included on lines 8-26 or line 30 Yes No 40 Total other expenses. Enterre and online 27 48 SCHEDULED Form 1040 or 1040-SRI Capital Gains and Losses OMG No. 1545-0074 2019 Department of the Treasury Internal Revenue Service Names shown on reum Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.is.gov/Schedule for instructions and the latest Information Use Form 8949 to list your transactions for lines 1, 2, 3, 6, 9 and 10 Attachment Sequence No 12 Your social security number Did you dispose of any investments) in a qualified opportunity fund during the tax year? Yes No If "Yos, attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part 1 Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the Gainor lines below. Art Subtractum to gain or lose from from count and This form may be easier to complete if you round off cents to brother For 0948. Potcombine the result whole dolars ine 2 columns with column 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to ine 1b 1b Totals for all transactions reported on Form) 8949 with Box A checked 2 Totals for al transactions reported on Forms 6949 with Box B checked 3 Totals for all transactions reported on Formis) 8949 with Box C checked 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8624 4 5 Net short-term gain or loss) from partnerships. S corporations, estates, and trusts from Schedule(s) K-1 5 6 Short-term capital loss carryover. Enter the amount, if any, from line of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or loss). Combine lines ta through in column. If you have any long- term capital gains or losses, go to Part I below. Otherwise, go to Part on the back 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) Soe instructions for how to figure the amounts to enter on the Gain or Ines below Subtracto Proceeds to rosso troud and This form may be easier to complete if you round off cents to Fom. Pat combine the rout whole dollars. with column Ba Totals for all long-term Transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (soo instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b 8b Totals for al transactions reported on Forms) 8949 with Box D checked 9 Totals for all transactions reported on Forms 8949 with Box E checked 10 Totals for all transactions reported on Forms 8949 with Box F checked 11 Gain from Form 4797. Part : long-term gain from Forms 2439 and 6252, and long-term gain or (0) from Forms 4884, 6781, and 1824 11 12 Net long-term gain or loss) from partnerships Scorporations, estates, and trusts from Schedules) K-1 12 13 Capital gain distributions. See the instructions 14 Long-term capital loss carryover. Enter the amount any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 15 Net long-term capital gain or loss). Combine Ines Sa through 14 incolumn. Then go to Partillon 15 the back For Paperwork Reduction Act Notice, see your tax return instructions. Schede 0 1040-52019 Schedule D (Form 1040 or 1040-SR) 2019 Page 2 Part III Summary 16 16 line 22. 17 Combine lines 7 and 15 and enter the result If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete If line 16 is zero, skip lines 17 through 21 below and enter -o- on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. 18 18 19 19 20 No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NA, line 14, the smaller of: The loss on line 16; or ($3,000), or if married filing separately, ($1,500) Note: When figuring which amount is smaller, treat both amounts as positive numbers. Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? 21 1 22 Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D Form 1040 1040-SR 2019 SCHEDULE SE OMB No 1545-0024 (Form 1040 or 1040-SR) Self-Employment Tax 2019 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information Attachment Internal Revenue Service Attach to Form 1040, 1040-SR, or 1040-NR. Sequence No 17 Nantect person with all employment income as shown on Form 1040. 1049-SR or 1040-NR Social security number of person with self-employment income Before you begin: To determine if you must file Schedule SE, see the instructions. May 1 Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must fie Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 20107 Yes No Yes Are you a mimi of a relgious order Science practitioner who received is approval not to be taxed on earrings from these source, but you owe self-employment tax on other earrings? Was the total of your wages and tips subject to social security Yes or raroad retirement for 1) tax plus your net earning from self-employ more than $132.000 No No Yes Are you using one of the optional methods to figure your eyes ang sentruction Did you receive tips subject to social security of Medicare to that you didn't report to your employer No No No Did you report any wazos on Form 1910, Uncollected Soul Yes Security and Medicare Tax on Wage? Did you receive church employee Income Intro) Yes reported on Form W-2 of 10828 or more? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Net tarm profit or lon) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065). box 14. code A 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F. line 4b, or listed on Schedule K-1 Form 1065). bax 20, code AH 1b 2 Net profit or loss) from Schedule C, line 31, and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of reigious orders, see instructions for types of income to report on this line. See Instructions for other income to report 2 3 Combine lines 1a, 1b, and 2 3 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't own self-employment tax don't fie this schedule unless you have an amount on Inn 1b 4 Note: I line 4 is less than $400 due to Conservation Reserve Program payments on line 1b. 500 instructions 5 Self-employment tax. If the amount on line 4 is: $132,900 or less, multiply line 4 by 15.3% (0.153) Enter the result hore and on Schedule 2 (Form 1040 or 1040-SR), Ine 4, or Form 1040-NR, line 55. More than $132,900, multiply line 4 by 2.9% (0.029). Then, add $16,479.60 to the result Enter the total here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NA, line 55 5 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NA, line 27 For Paperwork Reduction Act Notice, see your tax return instructions Cat No 11350Z Schede E Form 100 or 1040-BR 2010 6 N Schedule SE Form 1040 or 1040-SR 2010 Achment Sequence No. 17 Page 2 Name of person with setemployment income as shown on Form 1040 1040-SR. O 140N Social security number of person with self-employment income Section B-Long Schedule SE Part 1 Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions. Also see instructions for the definition of church employee income. If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1a Net farm profit or (ose) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065). box 14, code A. Note: Skip lines 1a and 1b you use the farm optional method ( Instructions) 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 Form 1065), box 20, code AH 1b Net profit or loss) trom Schedule C, line 31; and Schedule K-1 (Form 1065), box 14 code A (other than farming). Ministers and members of religious orders. see instructions for types of income to report on this line. See Instructions for other income to report. Note: Skip this line if you use the nonfarm optional method (see instructions) 2 3 Combine lines 1a, 1b, and 2 3 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 4a Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b. See Instructions. b you elect one or both of the optional methods, enter the total of lines 15 and 17 here 4b c Combine lines ta and 4b. If less than $400, stops you don't owe self employment tax Exception: If less than $400 and you had church employee income, enter -- and continue 4c 58 Enter your church employee income from Form W-2 See instructions for definition of church employee income 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- bb 6 Add lines 4c and 5b 6 7 Maximum amount of combined wages and self-employment eamings subject to social security tax or the 6.296 portion of the 7.65% railroad retirement tier 1) tax for 2019 7 132.900 da Total social security wages and tips (total of boxes 3 and 7 on Forms W-2 and railroad retirement (tier 1) compensation. $132,900 or more skip Ines 8b through 10. and go to line 11 Ba bUnreported tips subject to social security tax from Form 4137, ine 10) 8b c Wages subject to social security tax (from Form 8919, line 10 Bc d Add lines Ba. 86 and 8c Bd 9 Subtract line Bd from line 7. If zero or less, enter -- here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) 10 11 Multiply line 6 by 2.9% (0.029) 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 Form 1040 or 1040-SR). line 4, of Form 1040-NR, line 55 12 13 Deduction for one-half of self-employment tax Multiply line 12 by 50% (0.50). Enter the result here and on Schedule 1 Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 13 Part II Optional Methods To Figure Net Earnings (see instructions Farm Optional Method. You may use this method only if (a) your gross for income wasn't more than $8,160, or (b) your netfarm profits were less than $5.801. 14 Maximum income for optional methods 14 5,440 15 Enter the smaller of two-thirds of gross farm income not loss than 200 or $5.440. Also include this amount on line 4b above 15 Nontarm Optional Method. You may use this method only if (al your net non profits were less than $5,891 and also less than 72.189% of your gross nontam income, and (bl you had neteising from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times 16 Subtract line 15 from line 14 16 17 Enter the smaller of: two-thirds /) of gross non farm income not less than oro) or the amount on line 16. Also include this amount on line 4b above 17 From Sch. Fine, and so for 1005, box 14 code From Schwand Sch. K:1 Form 1000,box 14 code Athe amount you would have done to had you to the option Fronson CineStand Sch K-1 Form 1000 box 14. code A from Stand Scht Form 1005, Box 14 code Schedule Se Form 1040 100 2010 Matthew B. (age 42) and Courtney S. (age 41) Mumford are married and live at 11426 W. Antelope Drive, Sioux Falls, SD 57107. Matthew is the manager for The Pour House, a popular bar and grill in Sioux Falls. Courtney is a self-employed architect. They are calendar year, cash basis taxpayers. 1.) Matthew's annual salary from The Pour House is $98,000. He also earns an annual bonus. The amount is determined in late December based on performance during the year and is paid in January of the following year. Matthew's 2018 bonus was $6,000 (received in 2019), and his 2019 bonus was $7,000 (received in 2020). Matthew participates in his employer's group health insurance plan to which he contributed $7,200 in 2019 for medical coverage. These contributions are made with after-tax dollars. The health plan covers Matthew, Courtney, and their two dependent children. The Pour House does not provide any retirement benefits, but it has established a $ 401(k) plan to enable its employees to save for retirement. Matthew contributed $19,000 to the plan in 2019. Matthew commutes to and from work 6 days a week (a roundtrip of 18 miles) in the family SUV. During 2019, Matthew drove the SUV a total of 12,700 miles. 2.)Courtney is a licensed architect who works part time as an architectural consultant. Her professional activity code is 541310. Her major clients are real estate developers (both residential and commercial) for whom she prepares structural designs and construction plans. She also advises on building code requirements regarding the renovation and remodeling of existing structures. Courtney does some of her work at client locations and the remainder in her office at home (see item 3 below). Courtney collected $72,000 in consulting fees during 2019. This total includes a $3,000 payment for work she performed in 2018 and does not include $5,000 she billed in December for work performed in late 2019. In addition, Courtney has a $6,400 unpaid invoice for work done in 2017. This client was convicted of arson in August 2016 and is now serving a 5-year sentence in a state prison Courtney feels certain that she will never collect the $6,400 she is owed. Her business expenses for 2019 are as follows: Drafting supplies.............$4,800 Reproduction materials (e.g., molds, models, photos, blueprints, copies). 3,200 On-site work clothing (e.g., hip boots, safety glasses, safety helmet........860 Professional license fee.........400 Subscriptions to professional journals... ..250 Dues to professional organizations..... ..240 In addition, Courtney drove the family Acura (purchased on June 7, 2018) 940 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2019, Courtney drove the car a total of 10,000 miles. 3.)When the Mumfords purchased their home on February 2, 2017, they set aside 300 square feet (out of a total of 2,400 square feet) of living space for Courtney's office. The Mumfords do not use the simplified method for computing the home office deduction. As of January 1, 2019, the home had an adjusted basis of $240,000 ($40,000 of which is attributable to the land) for purposes of line 37 of Form 8829. The fair market value of the property was $282,000. Relevant information concerning the residence for all of 2019 appears below. Marino Per 3.)When the Mumfords purchased their home on February 2, 2017, they set aside 300 square feet (out of a total of 2,400 square feet) of living space for Courtney's office. The Mumfords do not use the simplified method for computing the home office deduction. As of January 1, 2019, the home had an adjusted basis of $240,000 ($40,000 of which is attributable to the land) for purposes of line 37 of Form 8829. The fair market value of the property was $282,000. Relevant information concerning the residence for all of 2019 appears below. Homeowner's insurance. ..$3,200 Repairs and maintenance.......1,800 Utilities...........6,200 Painting (office area only.........1,250 The cost of Courtney's office furniture and equipment was previously deducted under $ 179 in the years these assets were acquired. On June 29, 2019, she purchased a fireproof file cabinet for $800 to safeguard the blueprints of her structural designs and construction plans. Whenever possible, Courtney prefers to avoid depreciating capital expenditures over time. 4.)One of Courtney's clients was interested in building a shopping center on a tract of land she owned in Lincoln County. Courtney inherited the property from her uncle when he died on June 6, 1999. At that time, the land was valued at $40,000. It has since been rezoned for commercial use and has a current value of $200,000. On February 10,2019, Courtney exchanged the Lincoln parcel for a similar tract in Minnehaha County worth $190,000 and cash of $10,000 5.)On September 2, 2019, Courtney sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from the same uncle who died in 1999 and was valued at $30,000 on June 6, 1999. Under the terms of the sale, Courtney received cash of $20,000 and a note receivable to be paid in four equal installments at 1-year intervals from the date of sale. Each note calls for the payment of $25,000 plus simple Interest of 8%. To the extent allowed by law, Courtney wants to defer recognition of gain for as long as possible. 6.) In early 2018, Matthew learned that one of the restaurant's best servers, Mindy Smith, was suffering domestic abuse at the hands of her husband Billy. When Billy started to abuse their 5-year-old daughter as well. Mindy decided it was time to leave. Before they left on April 14, 2018, Matthew loaned Mindy $5,500 to help her relocate with her daughter. Matthew had her sign an interest-free note due in 1 year. Matthew never heard from Mindy again. In late 2019, Matthew learned that Billy tracked Mindy and their daughter down and killed both of them before committing suicide. Given these tragic circumstances, Matthew has no expectation that the loan will ever be repaid MathamundhirunanidhaM AmilaMANaammanatha Mechanin 7.On August 5, 2017, Matthew purchased 1,000 shares of Farmers Markets America (FMA) common stock for $16 a share as part of its initial public offering. The corporation was formed to establish and operate farmers' markets in mid-size cities throughout the United States. Although some market locations were profitable, the venture as a whole proved to be a failure. In November 2019, FMA's remaining assets were seized by its creditors, and FMA stock became worthless. B.) In addition to the items previously noted, the Mumfords had the following receipts for 2019: Interest income from: General Motors corporate bonds 1900 City of Sioux, SD bonds 1400 Castle Bank Certificate of deposit 210 3510 3100 Qualified dividends from MG&E Inc. Refund from Homestuff 430 Loan repayment 4500 Cash gifts from courtney's parents 32000 2018 federal income tax refund 290 In December 2018, the Mumfords made a major purchase of household items (e.g. appliances, furniture, etc.) at HomeStuff. They called the manager when they realized they did not receive the advertised sale price. Consequently, the store corrected the mistake and sent a $430 refund to the Mumfords in January 2019. Four years ago, Matthew lent his sister Sarah $4,000 to help pay for a honeymoon trip following her wedding to John Caine. Matthew was pleasantly surprised when Sarah paid him back (plus interest of $500) on December 20, 2019. On March 20 of each year, Courtney's parents send a generous gift of cash as a birthday present. Just as she has done for the past 7 years, Courtney immediately invested the cash in her children's $ 529 college savings plans. 9.) The Mumfords had the following expenditures for 2019: Bandcontributions to haditionalURA $600 9.)The Mumfords had the following expenditures for 2019: Courtney's contributions to her traditional IRA Net gamabling loss $6000 1000 Life insurance premiums 2700 Medical and dental expenses not covered by insurance 16612 Taxes: 4100 Ad valorem taxes on personal residence State and local sales taxes from receipts Interest on home mortgage reported on form 1098 2800 6900 4000 Cash contributions: Feeding south dakota (EIN 36-3293534) 1750 South dakota governor's election campaign fund 300 2050 The $1,000 net gambling loss for 2019 is the difference between the Mumfords' gambling winnings of $1,200 and losses of $2,200. The life insurance premiums relate to the universal life insurance policies that Matthew and Courtney own. The first beneficiary on both policies is the other spouse, with the second beneficiaries being the children. Included in the medical expenses are $1,200 incurred in 2018, which were paid in early February 2019. While South Dakota does not impose income taxes on individuals, it does impose sales taxes. The Mumfords can substantiate the $2,800 in sales taxes paid based on their purchase receipts for the year. The local sales tax rate in Sioux Falls is 2%. (Hint: Be sure to check to see if the Optional Sales Tax Tables provide the Mumfords with a greater deduction.) Courtney contributed to the governor's campaign fund because she thinks her influence was key in getting the Minnehaha County land rezoned for commercial use (see item 4 above). 10.)The Mumfords maintain a household that includes their two children, Nickolas (age 16) and Kaleigh (age 19). Nickolas is a junior in high school and a talented wrestler. In hopes of competing at the state tournament, all of his free time is consumed with weight training and wrestling practices, Kaleigh graduated from high school on June 7, 2018, and is undecided about college. She is an accomplished vocalist and during 2019 earned $7,200 performing at various events (eg, weddings, funerals). Kaleigh placed most of her earnings in a savings account for future use and kept only a small amount to spend on herself. 11. Matthew's Form W-2 from The Pour House shows $15,800 withheld for Federal income tax. The Mumfords also made estimated tax payments to the IRS totaling $5,000 for 2019. 12. Relevant Social Security numbers are noted below. Name Social Security Number Matthew B. Mumford 123-45-6786 123-45-6787 Courtney S. Mumford Kaleigh J. Mumford 123-45-6788 Nickolas W. Mumford 123-45-6798 Requirements Prepare an income tax return (with all appropriate forms and schedules) for the Mumfords for 2019, using the following guidelines: The Mumfords choose to file a joint income tax return. The Mumfords do not wish to contribute to the Presidential Election Campaign Fund. The Mumfords do not own any foreign bank accounts or other investments. In addition, the Mumfords do not have any financial interests in virtual currencies. The Mumfords prefer to receive a refund of any overpaid taxes. The taxpayers are preparing their own return (l.e, no preparer is involved). For the past several years, the Mumfords have itemized their deductions from AGL The taxpayers have the necessary substantiation (eg, records, receipts) to support all transactions reported on their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. SCHEDULE A Itemized Deductions Gh15-OON Form 1040 or 1040-S Peway 2000 Go to www.in.gov/Schedule for instructions and the Intest information 2019 Department of the Attach to Form 1040 or 1040-SR. Intere Service Caution: If you are claiming a ne uitled dose loss on Form 484 the instructions for ine 16 SON 07 Nama wow on Form 1040 or 1040 SR Your soclub Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) 1 Dental 2 Enter amount from Form 1040 or 1040-SR, line 86 2 Expenses 3 Mutiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than ine1,enter-O- Taxes You 5 State and local taxes Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. It you elect to include general sales taxes instead of ncome to check this box 5a b State and local real estate taxes instructions) 56 State and local personal property taxes 50 dAdd lines 5 through 5c 5d e Enter the smaller of line 5d or $10,000 (55,000f married filing separately) 5e 6 Other taxes. List type and amount 6 7 Addines Se and 6 Interest 8 Home mortgage interest and points. you didn't use all of your home You Paid mortgage loans to buy build, or improve your home. 300 Caution you Instructions and check this box O ngager Golony a Home mortgage Interest and points reported to you on Form 1098 med See Instructions if limited bHome mortgage Interest not reported to you on Form 1098. See instructions if imited. If paid to the person from whom you bought the home, so instructions and show that person's name, identifying no and address Bb c Points not reported to you on Form 1098 See instructions for special rules Bc d Mortgage insurance premium on Instructions ed Addnes Ba through 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines Be and Gifts to 11 Gints by cash or check. If you made any gift of $250 or more, Charity instructions 11 Caution you madsund 12 Other than by cash or check. If you made any gift of $250 or more. obor see instructions. You must attach Fom 8283 lover $500 12 wenton 13 Carryover from prior year 13 14. Addlines 11 through 13 14 Casualty and 15 Casualty and then from a fooraly declared disaster other than not qualified Theft Losses disaster losses. Attach Form 4684 and enter the amount from line 18 of that form. See Instructions 15 Other 16 Other from lot innstructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the right column for lines through 16. Also enter this amount on Itemized Form 1040 or 1040-SR. Sne 9 17 Deductions 18 If you slect to Hemize deductions even though they are than your standard deduction check this box For Paperwork Reduction Act Notice, see the instruction for Forms 1040 and 1040-SR. Scho 1040-108 SCHEDULEB Form 1040 or 1040-SA) OMEN-ON Interest and Ordinary Dividends Go to www.ins.gov/Schedule for instructions and the latest Information Attach to Form 1040 or 1040-SR. 2019 Dernet of these The Revenue Service Na shown on AR Sen 08 Your social security number Amount Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this Interest Interest first. Also, show that buyer's social security number and address See Instructions and the instructions for Forms 1040 and 1040-SA, Ine 2b) Note: you received a Form 1099-INT, Form 1099-OID, substitute statement from a brokerage firm, at the firm's name as the payer and enter the total interest shown on that tom 2 Add the amounts on line 1 3 Excludable interest on series EE and 1 U.S. savings bonds issued after 1989. Attach Form 8815 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR. Eine 25 Note: If line 4 is over $1,500, you must complete Part III Part II 5 Ust name of payer Ordinary Dividends 2 3 4 Amount Se retruction and the instructions for Forms 1040 and 1040 SR, line 302 5 Note: If you received a Form 1099-ON or substitute statement from a brokerage firm is the firm's name the payer and enter the ordinary dividends shown on that form 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3 6 Note: If line 6 is over $1,500. you must complete Part Part III You must complete this part if you (a) had over $1.500 of table interest or ordinary dividends had a foreign account or (c) received a distribution from, or were grantorot, or a transferorto, a foreign trust Yes No Foreign 7a At any time during 2019, did you have a financial terest in or signature authority over a financial Accounts account such as a bank account, securities account, or brokerage account located in a foreign and Trusts country? See instructions Caution "Yes," are you required to fill FinCEN Form 114. Report of Foreign Bank and Finance required tour Accounts FBAR, to report that financial interest or nature authority See FinCEN Form 114 to le FNGEN and its instructions for filing requirements and exceptions to those requirements Form 114 may you are required to file FCN Form 114, enter the name of the foreign country where the oltin tubstantial financial account is located Donate 8 During 2019, did you receive a distribution from or were you the grantor of or transferorto, a Instruction foreign trust? If "Yes, you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, so your tax return instruction GMIN Schedule Form 1040 1040-2019 SCHEDULEC Profit or Loss From Business OMB No 1545-0074 (Form 1040 or 1040-SA) (Sole Proprietorship) 2019 Go to www.irs.gov/Schedule for instructions and the latest Information Department of the Treasury Attachment Intel Pene Service Attach to Form 1040, 1040-SR. 1040-NR, or 1041; partnerships generally must file Form 1065. Sen Ne 09 Name of proprietor Social security number ISSN Principal business or profession, including product or service see instructions) 8 Enter code from instruction C Business name. If no separate business name, love blank D Employer lumbar (EN) WOOD BBD e 11 21 E Business address including suite or room no) City, town or post office, state, and ZIP code F Accounting method: (1) Cash (2) Accrual (3) Other (spoty G Did you materialy participate in the operation of this business during 2019?if "No," see instructions for limit on fosses Yes No H if you started or acquired this business during 2019, check here 1 Did you make any payments in 2019 that would require you to file Formis) 10997 se instructions Yes No M"Yes" did you or will you file required Form 10907 Yes No Part I Income 1 Gross receipts or sales See Instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee box on that form was checked 1 2 Rotuma and allowances 2 3 Subtractine 2 from line 1 3 4 Cost of goods sold from line 42 4 5 Gross profit. Subtract line 4 from line 3 5 6 Other income, including federal and state gaoine or fuel tax credit or refund ( Instructions 6 7 Gross income. Add lines 5 and 6 7 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expenses instructions 18 9 Car and truck expenses 19 Pension and profit-sharing plans 19 Instructional 20 Rent or lose instructions 10 Commissions and toes 10 a Vehicles, machinery and equipment 20a Contract labore instructions 11 bOther business property 200 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part 6 22 expense deduction (not included in Part 10 23 Tame and license 23 Instructional 13 24 Travel and meals 14 Employee benefit programs a Travel 24 other than on line 19) b Deductible meals 15 Insurance other than 15 Instructions 16 Interest instructions 25 Ur 25 Mortgage paid to barks, etc) 16a 26 Wagen (es employment credits 26 Other 160 278 Other expenses (from line 48 27a 17 Local and professionale 17 D Reserved for future se 270 28 Total expenses before expenses for business use of home Add lines through 27a 28 Tentative profit or() Subtract line 25 from line 7 29 30 Expenses for business use of your home. Do not report these expenses where. Attach Form 3820 unless using the simplified methods instructional Simplified method flere only enter the total square footage of your home and the part of your home used for business Use the Sired Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or loss). Subtract lines from line 29 . If a profit, enter on both Schedule 1 Form 1040 or 1040-5R), line 3 for Form 1040-NR. line 13) and on Schedule SE, line 2 of you checked the box on line 1, so instructional Estates and 31 trusts, enter on Form 1041, line 3 If a loos, you must go to ine 32 32 If you have a loss, check the box that describe your investment in this activity ontructions . If you checked 320, enter the loss on both Schedule 1 Form 1040 or 1040-5, line 3 for Form 1040-NR, line 13, and on schedule SE, line 2. of you checked the box on in 1, see the line 32 All Investment is tik 31 instruction Eats and trusts, enter on Form 1041, line 3 326 Some investments If you checked 32 you must attach Form 6190. Your ou may be limited ak For Paperwork Reduction Act Notice, see the separate instructions Cat No. 113 She Form 1040 1040-5) 2012 14 b % Page 2 Schedule Form 1040 or 1040-SR, 2019 Part III Cost of Goods Sold (see instructions) 33 34 Methods used to value closing Inventory a Cost b Lower of cost of market Other attach explanation Was there any change in determining quantities, costs, or valuations between opening and closing inventory? "Yes." attach explanation. D Yes No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation 35 36 Purchases less cost of items withdrawn for personal use 36 37 Cost of labor. Do not include any amounts paid to yourself 37 38 Materials and supplies 30 39 Other costs 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and online 42 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 43 44 When did you place your vehicle in service for business purpose? (month day, year) of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for Business Commuting (see Instructions c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 40 Do you for your spouse) have another vehicle available for personal use? Yes DDD No Yes No 47. Do you have evidence to support your deduction? b"Yes," is the evidence written Party Other Expenses. List below business expenses not included on lines 8-26 or line 30 Yes No 40 Total other expenses. Enterre and online 27 48 SCHEDULED Form 1040 or 1040-SRI Capital Gains and Losses OMG No. 1545-0074 2019 Department of the Treasury Internal Revenue Service Names shown on reum Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.is.gov/Schedule for instructions and the latest Information Use Form 8949 to list your transactions for lines 1, 2, 3, 6, 9 and 10 Attachment Sequence No 12 Your social security number Did you dispose of any investments) in a qualified opportunity fund during the tax year? Yes No If "Yos, attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part 1 Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the Gainor lines below. Art Subtractum to gain or lose from from count and This form may be easier to complete if you round off cents to brother For 0948. Potcombine the result whole dolars ine 2 columns with column 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to ine 1b 1b Totals for all transactions reported on Form) 8949 with Box A checked 2 Totals for al transactions reported on Forms 6949 with Box B checked 3 Totals for all transactions reported on Formis) 8949 with Box C checked 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8624 4 5 Net short-term gain or loss) from partnerships. S corporations, estates, and trusts from Schedule(s) K-1 5 6 Short-term capital loss carryover. Enter the amount, if any, from line of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or loss). Combine lines ta through in column. If you have any long- term capital gains or losses, go to Part I below. Otherwise, go to Part on the back 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) Soe instructions for how to figure the amounts to enter on the Gain or Ines below Subtracto Proceeds to rosso troud and This form may be easier to complete if you round off cents to Fom. Pat combine the rout whole dollars. with column Ba Totals for all long-term Transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (soo instructions However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b 8b Totals for al transactions reported on Forms) 8949 with Box D checked 9 Totals for all transactions reported on Forms 8949 with Box E checked 10 Totals for all transactions reported on Forms 8949 with Box F checked 11 Gain from Form 4797. Part : long-term gain from Forms 2439 and 6252, and long-term gain or (0) from Forms 4884, 6781, and 1824 11 12 Net long-term gain or loss) from partnerships Scorporations, estates, and trusts from Schedules) K-1 12 13 Capital gain distributions. See the instructions 14 Long-term capital loss carryover. Enter the amount any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 15 Net long-term capital gain or loss). Combine Ines Sa through 14 incolumn. Then go to Partillon 15 the back For Paperwork Reduction Act Notice, see your tax return instructions. Schede 0 1040-52019 Schedule D (Form 1040 or 1040-SR) 2019 Page 2 Part III Summary 16 16 line 22. 17 Combine lines 7 and 15 and enter the result If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete If line 16 is zero, skip lines 17 through 21 below and enter -o- on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. 18 18 19 19 20 No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NA, line 14, the smaller of: The loss on line 16; or ($3,000), or if married filing separately, ($1,500) Note: When figuring which amount is smaller, treat both amounts as positive numbers. Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? 21 1 22 Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D Form 1040 1040-SR 2019 SCHEDULE SE OMB No 1545-0024 (Form 1040 or 1040-SR) Self-Employment Tax 2019 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information Attachment Internal Revenue Service Attach to Form 1040, 1040-SR, or 1040-NR. Sequence No 17 Nantect person with all employment income as shown