Samantha graduated from Stockton University in December $2018$ with a degree in Business Studies. On $1/1/2020,$ Samantha started a business, Fishing $4$ Fun $($EIN $55-4569812),$ which provides fishing lessons to kids and organizes and hosts fly$-$fishing tournaments. The business operates as a single$-$member LLC$,$ uses the cash method of accounting and reports results on a calendar year basis. The business address is the same as her home address. Samantha has no employees but hires contract workers to assist her on an as$-$needed basis. She files all required Forms $1099$ for the year. In $2021,$ Samantha was a material and active participant in the business because she worked $2,000$ hours, which exceeds the threshold of greater than $500$ hours.

Samantha used her lifetime savings of $$25,000$ to open the business. With the initial capital contribution and regular infusion of business profits, the business purchased fishing equipment, a small boat, and boat trailer. The boat and trailer are used $100\%$ for her business. She elected to take Sec. $179$ on most of her acquisitions in $2020$ and elected out of bonus depreciation on all acquisitions. In $2021,$ Samantha indicated that she wishes to take bonus depreciation on all newly acquired assets.

Samantha uses her personal vehicle, a $2015$ Dodge Ram, to trailer the boat to and from the fishing holes. Her students provide their own transportation. Samantha maintains a mileage log to track her miles. In $2021$ her business miles were $6,000$ and personal miles were $14,000.$

Samantha also transferred some of her personal assets to the business $($see asset detail schedules$).$ These items reside in her home office where only business is conducted. She rents her home for $$1,000$ per month. The total square footage of the home including the home office is $1,200$ sq feet. The office is $200$ square feet. She elects to use the simplified method to calculate her home office deduction. She rents an outdoor storage space for the boat and trailer.

Midway through $2021,$ the business computer crashed so she had to purchase a replacement. She decided at that time to sell the other office equipment and furniture and buy all new. Samantha provided a detail asset list, which is shown in Table $1.$ Table $2$ shows the accumulated depreciation deducted for tax purposes for each asset acquired prior to $2021,$ for both federal, NJ$,$ and AMT purposes. This information was obtained from the $2020$ tax return. Table $3$ details the fair value of the personal use assets transferred to the business on Jan. $1,2020.$ Fair values were determined in $2020,$ and historical records of assets are maintained.

Asset input tip: Create an Excel spreadsheet that combines the data you need from the following tables for entering in the software $($look at the data entry screens in the software first$).$

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Table $1.$ Asset Details $($Prepared by Client$)$

Description Purchase date Amount Paid Notes

$10$ fishing rods Jan $10,2020$ $$1,000$ Purchased from Richard$$s Sporting Goods. See receipt.

$20$ reels Jan $10,2020$ $$1,000$ Purchased from Richard$$s Sporting Goods. See receipt.

$5$ tackle boxes Jan $10,2020$ $$125$ Purchased from Richard$$s Sporting Goods. See receipt.

$4$ yeti coolers Feb. $1,2020$ $$300$ Purchased from Richard$$s Sporting Goods. See receipt.

$10$ nets Mar. $31,2020$ $$400$ Purchased from Richard$$s Sporting Goods. See receipt.

$20$ pairs of waders Mar. $31,2020$ $$1,300$ Purchased from Richard$$s Sporting Goods. See receipt.

$20$ life jackets April $1,2020$ $$1,200$ Purchased from Richard$$s Sporting Goods. See receipt.

Boat April $1,2020$ $$10,000$ Purchased from Bass Pro Shops. See receipt.

Boat trailer April $1,2020$ $$2,500$ Purchased from Bass Pro Shops. See receipt.

Computer from home $2017$ $$1,200$ Was purchased for school use in $2017$ for amount shown. Crashed and recycled June $17,2021.$

Printer $/$ Copier from home $2018$ $$220$ Was purchased for school use in $2018$ for amount shown. Sold at yard sale on June $30,2021,$ for $$70.$

Desk from home $2017$ $$225$ Was purchased for school use in $2017$ for amount shown. Sold at yard sale on June $30,2021,$ for $$85$

Chair from home $2017$ $$125$ Was purchased for school use in $2017$ for amount shown. Sold at yard sale on June $30,2021,$ for $$45$

Computer June $18,2021$ $$1,350$ Purchased from Best Buy. See receipt.

Printer $/$ Copier June $18,2021$ $$340$ Purchased from Best Buy. See receipt.

Desk June $19,2021$ $$600$ Purchased from Staples. See receipt.

Chair June $19,2021$ $$280$ Purchased from Staples. See receipt.

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Table $2$: Asset Detail from $2020$ tax return

Description Special Depreciation $($bonus or Sec. $179)$ Prior Sec. $179$ Prior Depreciation AMT Prior Depreciation$*$

$10$ fishing rods Sec. $179$ $$1,000107$

$20$ reels Sec. $179$ $$1,000107$

$5$ tackle boxes Sec. $179$ $$12513$

$4$ yeti coolers Sec. $179$ $$30032$

$10$ nets Sec. $179$ $$40043$

$20$ pairs of waders Sec. $179$ $$1,300139$

$20$ life jackets Sec. $179$ $$1,200129$

Boat None $$1,000789$

Boat trailer None $$500375$

Computer from home None $$4030$

Printer $/$ Copier from home No