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Rick Scott, a self employed Financial Advisor, reported the following in connection with the operation of his business in 2019: Income received for services rendered

  1. Rick Scott, a self employed Financial Advisor, reported the following in connection with the operation of his business in 2019:

Income received for services rendered

455,000

Office supplies

3,000

Salary for administrative assistance

47,000

Purchase of Office equipment 3/15/19

19,500

Utilities

3,450

Real estate taxes

7,200

Mortgage Interest

6,700

- The business continued to use the following assets during the year:

  1. the office building was purchased for 1.5 million and placed in Service on 5/20/16.
  2. A truck used only for business purposes purchased 6/1/17 for 35,000.

  • Rick used his personal automobile to conduct business 80% of the time. The only information he provided was: Total miles driven in 2019 = 15,000. Receipts for the purchase of tires 3,500; Tolls $350; Oil change service $150.

  • Rick traveled to Arizona. Spent 4days conducting business and 2-days sight-seeing.

The following expenses were incurred:

Airfare

1,100

Hotel (per day)

300

Meals (per day)

150

Car rental (per day)

99

  • Assume Rick incurred the following personal expenses in 2019:

Medical Expenses

4,200

Mortgage Interest

3,100

Property taxes

2,500

Charitable Contrib

5,000

Required: Prepare the following 2019 tax Forms/calculations for Rick Scott:

  1. Prepare Sch C
  2. Calculate SE tax
  3. Prepare Sch 1
  4. Calculate QBID
  5. Prepare Form 1040 to calculate Ricks 2019 taxable Income.

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