Scenario Jacob Weaver is a contractor operating as a sole proprietorship (EIN 12-3456789). 2019 Gross income: $278,322.25.

Business expenses:

Fuel for equipment .....................$64,080.00

Repairs and maintenance .........$17,342.00

Lubricants for Equipment .........$9,670.00

Insurance ....................................$6,500.00

Wages ..........................................$6,300.00

Vehicles ......................................$1,768.00

Legal and Professional Expenses ..$1,750.00

Taxes and Licenses ...................$1,412.00

Advertising .....................................$300.00

Clients owe him a total of $53,000, for work completed in 2019.

2019 estimated tax payments were $25,000.

He is using a bedroom in his house as a home office. (Square footage of home 5,600 Office 240 sq. ft.)

He has one half-time employee, Martin, who had been unemployed since returning from Afghanistan and is disabled. Martin worked for Jacob for 20 hours a week, for 41 weeks of 2019. He earned $10,500.

Jacob had to spend $7,350 for disabled access equipment for Martin.

Instructions Complete the following:

Download the appropriate forms and publications from IRS.gov to complete this assessment.

Complete the entries on tax forms required for a sole proprietorship return.

Analyze official rules and instructions to correctly compute SE tax and SE deduction. 1040sc. 1040sse.

Determine whether Jacob's business is eligible for any tax credits. Is Jacob's business eligible to use the Work Opportunity Credit and Disabled Access Credit?

Determine eligible business deductions. Interpret official rules and instructions to record correct entries on tax forms. Submit the tax forms.