My questions are: How much is the depreciation on each asset on (Q3), for (Q1) should I used the information as W2 or use form 4852, and (Q2) how much would the federal tax withheld be? NOTE: We are doing a tax return with all this information. Use the following information to complete Steve and Ann Smith's 2018 federal income tax return. Any required forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). THE TAX RETURN SHOULD BE PREPARED USING THE FILL IN FORMS. NO HANDWRITTEN RETURNS WILL BE ACCEPTED. Steve and Ann Smith are married and file a joint return. Steve is self-employed as a sales person and Ann is a bookkeeper. Steve and Ann have one dependent, a son named Tony. The Smiths provide you with the following additional information: The Smith's do not want to contribute to the presidential election campaign. The Smith's live at 1517 West Drive, Austin, TX 73301. Steve's birthday is 1/3/1967 and his Social Security number is 462-40-0001. Ann's birthday is 12/5/1970 and her Social Security number is 462-95-2002. Tony's birthday is 3/8/2012 and his Social Security number is 089-90-4528. The Smiths do not have any foreign bank accounts or trusts. The Smiths had family health insurance coverage for the entire year. 1. Ann is a bookkeeper for Allright Books where she earned $89,000 in salary. Allright Books withheld federal income tax of $10,000, social security tax of $5,518 and Medicare tax of $1,291. She also held a job as an analyst for Elite Analytics where she earned $150,000 in salary. Elite Analytics withheld income tax of $25,900, social security tax of $7,961, and Medicare tax of $2,175. 2. On June 15, 2018, the Smiths sold their IBM Corporation stock. They sold 100 shares of common stock for $200 a share. The Smiths purchased the stock on April 15, 2011, for $25 a share. The transaction was reported to them on a Form 1099-B and the cost basis was reported to the IRS. 3. Steve's operates a sales business named "Number One Sales". He has been in business since 2001. His business is located at 296 University Street, Austin, TX 73301, and his employer identification number is 27-6548794. Steve's gross receipts during the year were $110,000. Steve uses the cash method of accounting for his business. Steve made payments in 2018 that would require him to file Forms 1099 and did file all required Forms 1099. Steve paid $1,000 in health insurance premiums. All expenditures are properly documented and have a business purpose. Steve's business expenses are as follows: Advertising $ 1,000 Commissions 8,000 Line of credit interest 5,200 Rent 41,000 Meals 4,000 Contract Labor 28,500 Liability insurance 2,000 Professionalservices 2,800 Office expenses 400 Utilities 2,975 Taxes and licenses 6,250 Depreciation To be calculated Steve purchased the following assets for his office during the year: Date acquired Asset Cost 6/1 Office furniture $ 6,000 2/1 Printers $ 4,000 2/1 Computer equipment $ 10,000 4/20 Office equipment $ 6,000 Steve computes his cost recovery allowance using MACRS. He does not want to use the Section 179 immediate expensing or bonus depreciation. 4. The Smiths paid $15,000 in mortgage interest during 2018. Their property taxes were $10,000. 5. The Smiths prior year tax was $0. 6. Attach a hand-written computation of the tax to your return.