Note: This problem is for the 2018 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2018. Line Description Amount Wages, tips, other compensation $65,000.00 Federal income tax withheld 10,500.00 Social Security wages 65,000.00 Social Security tax withheld 4,030.00 Medicare wages and tips 65,000.00 Medicare tax withheld 942.50 State Arizona State wages, tips, etc. 65,000.00 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer. Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share, On September 12, 2018, Beth sold the stock for $14 a share. Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500. On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies 650 Fee paid to computer consultant son Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2018, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills, Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated taxes of $1,000. Required: SCHEDULEC Form 1040) Profit or Loss From Business pole Proprietorship Go to www.in.gov/Sched for a t and the latest formation Altech 104 104 1041: t he genera te Femm 1005 2018 - Service Principal business or p a nching product or service in Broox & Business name. I no separate business name, leave blank LLLLLL Business address inchading suite or room ) City, town or post the state and ZIP code Accounting method: (1) Cash Acor other specity Did you "material participate in the operation of this business during 2017 # "No," see Instructions for o n los Yes No If you started or acquired this business during 2018, check here . . . Did you make any payments in 2018 that would require you to file Forms 10997 (see Instructions ...... Yes If Yes did you or will you required Forms 1000? Part1 Income 1 Gross receipts orals See Instructions for line 1 and check the box this income was reported to you on Form W-2 and the Statutory employee box on that form was checked. . . . . . . . ." 2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . - - - 3 Subtract line 2 from ne 1 . . . . . . . . . . 4 Cost of goods sold from line 42) . . . . . . . . . . . . . . 5 Gross profit. Subtractine 4 from line 3 . . . . . . . . . . . . . . . . 6 Other Income, including federal and state gasoline or fuel tax creditor round (see Instructions . . 7 Gross income. Add lines 5 and 6. . . . . Part Il Expenses. Enter expenses for business use of your home only on line 30. & Advertising . . . . . . 18 Office expenses Instructions 18 . 10 . Car and truck expenses Pension and profit-sharing plans 19 Per or instructions. . . . . sa se instruction 10 Commissions and foes. & Vehicles, machinery, and equipment Contract labore Instruction b Other business property . . 12 Depletion . . . 21 Repairs and maintenance. . . 13 Depreciation and section 179 22 Supplies (not included in Port expense deduction not 23 Taxes and licenses. . . . . Included in Part 500 22 Travel and meals Instructions. . . 14 Employee benefit programs Travel . . . . . . . . . (other than on Ene 19). . b Deductible meals (SO Instructions. . . . 15 Insurance (other than health . . 25 Uutis . 16 Interest (see instructions: . . . . . . - Mortgage paid to banks, etc.) 16 26 Wages les employment credits). Other 16 27a Other expenses (from line 48). - 27a - - - 17 Legal and professional services 17 0 0 b Reserved for future use... Total expenses before expenses for business use of home. Add lines through 27a . . . . . . 29 Tentative profit or oss. Subtract line 28 from line 7. . . . . . . . . . . . . . . . 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 1829 unless using the simplified method (see Instructions Simplified method flers only enter the total square footage of your home Use the Simplified and (b) the part of your home used for business: . . . Method Workshoot in the instructions to figure the amount to enter on line 30. . 31 Net profit or loss. Subtractine 30 from line 29 3200 . a profit, enter on both Schedule 1 Form 1040, Ine 12 for Form 1040NR, line 13) and on Schedule SE, Sofo Ine 2 of you checked the box on line 1, se instructions. Estates and trusts, enter on Form 1041, line a loss, you must go to line 32 instructions 32 you have a loss, check the box that describes your investment in this activity is . you checked 32a. enter the loss on both Schedule 1 (Form 1040), line 12 for Form 1040NR, 32 Al investment is at risk. line 13 and on schedule SE. Ane 2. you checked the box on line 1, see the line 31 Instructions) Some Investment is not at risk Estates and trusts, enter on Form 1041, line 2 . If you checked 32b, you must attach Form 100. Your loss may be limited Cat No. 11334P Schedule Form 1046 2011 For Paperwork Reduction Act Notice, see the separate instructions ALIA Note: This problem is for the 2018 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2018. Line Description Amount Wages, tips, other compensation $65,000.00 Federal income tax withheld 10,500.00 Social Security wages 65,000.00 Social Security tax withheld 4,030.00 Medicare wages and tips 65,000.00 Medicare tax withheld 942.50 State Arizona State wages, tips, etc. 65,000.00 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer. Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share, On September 12, 2018, Beth sold the stock for $14 a share. Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500. On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies 650 Fee paid to computer consultant son Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2018, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills, Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated taxes of $1,000. Required: SCHEDULEC Form 1040) Profit or Loss From Business pole Proprietorship Go to www.in.gov/Sched for a t and the latest formation Altech 104 104 1041: t he genera te Femm 1005 2018 - Service Principal business or p a nching product or service in Broox & Business name. I no separate business name, leave blank LLLLLL Business address inchading suite or room ) City, town or post the state and ZIP code Accounting method: (1) Cash Acor other specity Did you "material participate in the operation of this business during 2017 # "No," see Instructions for o n los Yes No If you started or acquired this business during 2018, check here . . . Did you make any payments in 2018 that would require you to file Forms 10997 (see Instructions ...... Yes If Yes did you or will you required Forms 1000? Part1 Income 1 Gross receipts orals See Instructions for line 1 and check the box this income was reported to you on Form W-2 and the Statutory employee box on that form was checked. . . . . . . . ." 2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . - - - 3 Subtract line 2 from ne 1 . . . . . . . . . . 4 Cost of goods sold from line 42) . . . . . . . . . . . . . . 5 Gross profit. Subtractine 4 from line 3 . . . . . . . . . . . . . . . . 6 Other Income, including federal and state gasoline or fuel tax creditor round (see Instructions . . 7 Gross income. Add lines 5 and 6. . . . . Part Il Expenses. Enter expenses for business use of your home only on line 30. & Advertising . . . . . . 18 Office expenses Instructions 18 . 10 . Car and truck expenses Pension and profit-sharing plans 19 Per or instructions. . . . . sa se instruction 10 Commissions and foes. & Vehicles, machinery, and equipment Contract labore Instruction b Other business property . . 12 Depletion . . . 21 Repairs and maintenance. . . 13 Depreciation and section 179 22 Supplies (not included in Port expense deduction not 23 Taxes and licenses. . . . . Included in Part 500 22 Travel and meals Instructions. . . 14 Employee benefit programs Travel . . . . . . . . . (other than on Ene 19). . b Deductible meals (SO Instructions. . . . 15 Insurance (other than health . . 25 Uutis . 16 Interest (see instructions: . . . . . . - Mortgage paid to banks, etc.) 16 26 Wages les employment credits). Other 16 27a Other expenses (from line 48). - 27a - - - 17 Legal and professional services 17 0 0 b Reserved for future use... Total expenses before expenses for business use of home. Add lines through 27a . . . . . . 29 Tentative profit or oss. Subtract line 28 from line 7. . . . . . . . . . . . . . . . 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 1829 unless using the simplified method (see Instructions Simplified method flers only enter the total square footage of your home Use the Simplified and (b) the part of your home used for business: . . . Method Workshoot in the instructions to figure the amount to enter on line 30. . 31 Net profit or loss. Subtractine 30 from line 29 3200 . a profit, enter on both Schedule 1 Form 1040, Ine 12 for Form 1040NR, line 13) and on Schedule SE, Sofo Ine 2 of you checked the box on line 1, se instructions. Estates and trusts, enter on Form 1041, line a loss, you must go to line 32 instructions 32 you have a loss, check the box that describes your investment in this activity is . you checked 32a. enter the loss on both Schedule 1 (Form 1040), line 12 for Form 1040NR, 32 Al investment is at risk. line 13 and on schedule SE. Ane 2. you checked the box on line 1, see the line 31 Instructions) Some Investment is not at risk Estates and trusts, enter on Form 1041, line 2 . If you checked 32b, you must attach Form 100. Your loss may be limited Cat No. 11334P Schedule Form 1046 2011 For Paperwork Reduction Act Notice, see the separate instructions ALIA