Required: For tax year 2022, complete (and attach in the following order): Form 1040, Schedule 1 (Form 1040), Schedule 2 (Form 1040), Form SE, Schedule A (Form 1040), Schedule C (Form 1040), Form 4562, Schedule D (Form 1040), Form 8949, and Form 8995.

Joe and Stacy Hill are married and file a joint income tax return. Their address is 390 Swingline Road, Columbus, OH 43201. Joes Social Security number is 123-45-6789, and Stacys is 987-65-4321. They have no children. Stacy, however, was married previously. Joes date of birth is 02/24/1976 and Stacys is 07/09/1978. Joe is a construction worker, and Stacy is self-employed at a successful retail/sports memorabilia establishment (Buckeye Sales), where she materially participates. They report all their income and expenses on the cash method and are calendar year taxpayers. For 2022, they report the following items of income and expense: Joes salary $88,000 Property tax on their personal residence 5,800 State income tax 4,000 Mortgage interest paid on residence 11,000 Qualified medical expenses 22,000 Federal income tax withheld on Joes salary 13,200 Income tax preparation fee for the prior years income tax return paid this year 1,300 (($700) is allocated to preparation of Schedule C) Alimony paid to Stacys ex-husband 12,000 (Divorce was in 2015) Gift from Stacys mother 8,000 Municipal bond interest 1,200

Capital Gains and Losses: Stacy and Joe sold 100 shares of PDQ Corp. common stock on October 8, 2022, for $280,000. They acquired the stock on December 15, 2019, for $200,000. They also sold 75 shares of JSB Corp. common stock on June 18, 2022, for $200,000. Stacy & Joe acquired this stock on September 18, 2013, for $300,000. The following is exclusive to Stacys business: Buckeye Sales is located at 5325 Lane Ave, Columbus, OH 43201. It is engaged in the sale of college apparel with an employer identification number (EIN) of 75-2010008. It is on the cash basis. The company began business on January 1, 2014. Other information follows. You may assume that any expense of the business in an ordinary, necessary, and reasonable expense. It values inventory at cost. Estimated Tax Payments: The business deposited estimated federal income tax payments as follows: April 15, 2022 $ 7,500 July 15, 2022 7,500 September 15, 2022 7,500 December 15, 2022 7,500 $ 30,000 Sales and Cost of Goods Sold: Buckeye had gross receipts of $815,000. Customers returned items totaling $69,000. The inventory at the beginning of the year was $608,000 and was $585,000 at the end of the year. Purchases during the year were $200,000 Compensation of Employees: Start-Up Expenditures: Buckeye incurred $27,500 of start-up expenditures before opening on January 1, 2014. For tax purposes, it elected under 195 to deduct $5,000 in 2014 and amortize the remaining $22,500, with a full months amortization taken for January 2014. Employee Wages Mary Travis 50,000$ Sam Baker 22,000 Lilly Limb 18,500 90,500$

Fixed Assets and Depreciation: For tax purposes: All assets are MACRS property as follows: Store building, 39-year non-residential real property, Equipment, 7-year property, and Trucks, 5-year property. Buckeye acquired the store building for $3.5 million and placed it in service on May 2, 2017. It acquired two pieces of equipment: $300,000 (Equipment 1) and $775,000 (Equipment 2) and placed them in service on January 2, 2018. It acquired the trucks for $315,000 and placed them in service on July 18, 2019. The trucks are not subject to the limitation on luxury automobiles. Buckeye did not make the expensing election under 179 or take bonus depreciation on any property acquired before 2022. Accumulated tax depreciation through December 31, 2021, on these properties is as follows: Buckeye purchased two new depreciable assets this year. Stacy wants to deduct the maximum within the confines of the law and the limitations listed below. Where applicable, use the published depreciation tables to compute 2022 depreciation. On June 1, 2022, Buckeye acquired and placed into service new fixtures costing $79,000. The new fixtures are 7-year property. Buckeye made the 179 expensing election with regard to the new fixtures but elected out of bonus depreciation. On October 16, 2022, Buckeye acquired and placed into service new office furniture for $125,000. The new furniture is 7-year property. Buckeye did not make the 179 expensing election and elected out of bonus depreciation. Other expense information for Buckeye: Advertising $4,500 Supplies 800 Real estate taxes 7,200 Insurance 8,000 Annual state license 725 Employee benefit programs 2,000 Legal fees 1,000 Utilities 18,000 Repairs/maintenance 2,250 Business tax (charged to retailer) 3,200 You can ignore any sales taxes