Question
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
- 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 |
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- The business continued to use the following assets during the year:
- the office building was purchased for 1.5 million and placed in Service on 5/20/16.
- 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 |
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Required: Prepare the following 2019 tax Forms/calculations for Rick Scott:
- Prepare Sch C
- Calculate SE tax
- Prepare Sch 1
- Calculate QBID
- Prepare Form 1040 to calculate Ricks 2019 taxable Income.
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