Prepare a tax return for William Winston (age 56, DOB: 7/1/1965, SSN:226-00-4265). Mr. Winston is single and lives at 53 Mantis Road, Baton Rouge La. 70816. He operates Lovely Lady Beauty Salon at 1096 Lovely Lady Lane, Baton Rouge La. 70816. His EIN is 34-135709. He is a calendar year taxpayer and ooerates a cash basis business.

He opened his business on January 15, 2022. He materially participates in his business and did not make any payments that required him to file Form 1099. His gross sales for the year were $69,327. He paid $5,520 for health insurance through a third,-party provider.

He had the following business expenses:

Advertising $375. Phone $894

Commission $401. Business insurance $596

Supplies $685. License $350

Business personal property tax $245. Travel. $800

Wages $14,530. Bank /charges $789

Rentals of business property $7,100. FUTA/FICA $2,100

He maintains a logo book for the business use of his car. Mr. Winston placed his vehicle into service on January 15, 2022. He had business mileage of 6,365 (incurred evenly throughout the year,), 1,946 communiting miles, and 2,110 personal miles. He prefers to use the standard mileage rate. His travel expenses included no meals. They were provided by vendors.

Because this is the first year of operation, the beginning inventory was $0. He had purchases of $16, 740, none of which was for personal use. He had no other costs as part of his costs of goods sold. His ending inventory was $2,000.

Mr. Winston's prior year tax liability was $0. He paid timely federal estimated tax payments of $750 per quarter. He did not itemize expenses on his return for tax year 2021