Maria A Solo (SSN 318-01-6921) lives at 190 Glenn drive, grand rapids, Michigan 49527-2005. Maria (age 45 and single) claims her aunt, Selda Ray (ssn 282-61-4011), as a dependent. Selda lives with Maria. Maria owns and operates the Reliable drug company at 1816 first st in grand rapids, Michigan 49503-1902, in which she materially participates the entire year. Her EIN is 38-9654321. Employer quarterly payroll tax returns were filed as required, and Maria reports on the accrual method, but uses the “direct write-off” method to compute bad debt expense. Her business code is 446110. She does not deduct expenses for an office in her home. An examination of Maria’s business records reveals that the depreciable property includes furniture, a delivery truck, and store equipment. The depreciation expense shown on the 2022 income statement meets the income tax requirements for depreciation for using the mentioned assets during 2022. Maria rounds calculations to the nearest dollar. Miscellaneous expenses include the following: $350 Contributions to the Red Cross and Chamber of Commerce dues 125 Personal electric bill for August $80 Total Miscellaneous expenses $555. Maria also pays 4500 in state Income estimated taxes for 2022; and property taxes on her personal vehicles of $450; in addition to her personal mortgage interest of $7000, Further, she has evidence of church contributions of $2000 in the form of a letter from her church, Other income for Maria includes a salary of $100 each month for her services as a member of working committee of the Drug Association. Her form W-2 from the association shows gross wages of $1,200 and federal income tax withheld of $296.Maria purchases $500 a month insurance from work. She also has 1000 in out of pocket medical expenses. Maria also earned $320 in taxable interest. Maria made federal estimated has tax payments totaling $5,000 during 2022. This amount is reported on Form 1040, page 2. Maria has rental property. the following transactions: gross rents; 12000, depreciation 3000, repairs 3500, sewer 600, mortgage interest 1500, insurance 550, property taxes 1200, Use schedule e to report income and expenses. She Prepare Form 1040, and Schedule C, and SE for Maria Solo. RELIABLE DRUG COMPANY Income statement For the year ended December 31, 2022. Operating Revenue: Sales $324,200 Less sales returns and allowance (3,390) Net Sales $320,810 Cost of merchandise sold: Merchanded inventory, beginning $68,920 Purchases $198,240 Less purchase returns and allowances (8,100) Net purchase $190,140 Merchandise available for sale $259,060 Less merchandise inventory, ending (69,185) Cost of merchandise sold (189,875) Gross profit on sales $130,935 Operating expenses: Advertising expense $6,541 Bad debt expense (direct write off method) 850 Car and truck expense 7,967* Depreciation expense 3,396 Insurance expense (other than health) 644 Miscellaneous expense 125 Payroll taxes 3,471 Rent expense (other than business property) 12,000 Telephone and utilities expense, 2,395 , travel expense 256 meal expense 70. Wages expense 62,500 Total operating expense (100,215) Net income $30,720 *Maria drove her personal automobile for 14,619 business miles during the year. Total miles for the year were 32,815. There were 1,300 commuting miles. This is Maria’s only car. She has kept a written log documenting her business miles. Maria first used the car in her business on May 4, 2021. She uses the standard mileage method. Maia also was invested in the stock market, and she had some transactions for the tax period 2022, she would use the schedule to report her stock transactions, she had the following stock sales in 2022 she did not buy any new stock for the year 2022. She sold 100 shares of Budweiser stock for $125 per share on July 15^th2022 purchased on July 3, 2017 for $75 per share.

She sold 100 shares of proctor and gamble stock for $100 per share on July 15, 2022 purchased on July 25, 2021 for $75 per share.

She also sold 100 shares of mcdonalds stock for $175 per share on July 18 2022 purchased on August 15, 2017 for $120 per share.

She also has a long term loss carry forward of 6500,

Please prepare 2022 tax form 1040 use schedules 1 and 2, with schedule a,c,e form se and form 8949 Can you please solve and show all forms ?

Answer rating: 100% (QA)

To prepare Maria Solos 2022 individual income tax return you will need to complete the following forms and schedules Form 1040 Schedule 1 Schedule 2 Schedule A Schedule C Schedule E Form 8949 and Form ... View the full answer