PROBLEM 1 Gary M. Barone (SSN 032-54-8896, born 415/1973) is single. He lives n453 Electronic Road, Ocean View, DE 19970. In 2016, he provided all the support and cost for keeping up the home for himself and his son Robert (SSN 456-98-7123, born 6/29/2006). He and Robert had health insurance coverage all year through his employer Gary is an assembly repairman, and on the weekends he teaches classes in stained glass (business code 812990) in a room that he uses exclusively for this purpose. The room is 300 out of the 2,400 sq. ft. home that he rents. He uses the cash method of accounting and earned $16,780 in 2016 He did not make any payments that woukd require him to file Form(s) 1099. His list of expenses shows the following Supplies Office expenses Rent (12 months) Renters' insurance Utilities (12 months) 2016 total mileage 6,045 285 12,600 132 2,160 12.598 (1,830 business miles) Placed in service 1/1/2016) Interest on car loan Personal property tax on the car Cell usage 2015 tax prep fees 238 47 900 475 (40% business usage) (45% for business forms) Gary parchased 200 shares of PGA on November 24, 2010, at a cost of $18.50 per share plus a broker's commission of $95 He purchased 500 shares of JTH on February 19,2013 and sold all of the shares on October 27, 2016 Gary made four federal estimated tax payments of $200 on the scheduled due dates Tax Year 2016 Substitule Forms 1099 T. Rebert Pieroe I6 Big Bucks Lane New Yerk NY 10020 Payer's Federal ID Recipient's SSN 032-54 8396 Account Number 74-1522233 23232525 Gary M. Barone 8453 Eletronic Rod Ocean View, DE 19970 Dividends and Distributions (1699-D $1.598 279 , Uwocannd section 1250 pm 1202 gan M Collectibles ' 28% gain) 3 Nondvidend di 4 Federal income tax wihheld 7Fucigh coustry or US possossice Cash Liquidation Distributions 10. Exempt-rest Dividends Phivase Activity Bood Interest Dvidends 5498 25 Fedoral income tax widbel4 Specified Private Actvity Hend Interee