SCHEDULE 1 (Form 1040 or 1040-SR) Department of the Treasury Internal Revenue Service		OMB No. 1545-0074
		2019 Attachment Sequence No. 01

Name(s) shown on Form 1040 or 1040-SR Devon Bishop

Your social security number 111-11-1117

At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes No

Part I

Additional Income

1	Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				1
2a	Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				2a
b	Date of original divorce or separation agreement (see instructions)
3	Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				3	fill in the blank 5ec90cff4f9ffc9_1
4	Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				4
5	Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . . . . . . . . . . . .				5
6	Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				6
7	Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				7
8	Other income. List type and amount
					8
9	Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a . . . . . . . . . . . . . . . . . . . . . . .				9	fill in the blank 5ec90cff4f9ffc9_2

Part II

Adjustments to Income

10	Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
11	Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
12	Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
13	Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
14	Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14	fill in the blank
15	Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	15
16	Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16	fill in the blank
17	Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
18a	Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18a
b	Recipient's SSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c	Date of original divorce or separation agreement (see instructions)
19	IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19
20	Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20
21	Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	21
22	Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	22	fill in the blank

BAA For Paperwork Reduction Act Notice, see your tax return instructions.

Schedule 1 (Form 1040 or 1040-SR) 2019

Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the year, and he does not want $3 to go to the Presidential Election Campaign Fund. Devon's wife, Ariane, passed away in 2015. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45- 6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory; the business operates as Devon's Copy Shop, 422 E. Main Street, Albuquerque, NM 87131, IRS business activity code: 453990. His revenues and expenses for 2019 are as follows. Sales revenue Cost of goods sold (based on purchases for the year) Salary expense Rent expense Utilities $740,000 405,000 88,000 30,000 8,000 Telephone 6,500 Advertising 4,000 Bad debts 5,000 Depreciation* 21,000 Health insurance** 26,000 Accounting and legal fees 7,000 Supplies 1,000 *New office equipment ($21,000); Devon chose to use the immediate expense election. ** $18,000 for employees and $8,000 for Devon. Other income received by Devon includes the following. $10,000 2,000 Other income received by Devon includes the following. Dividend income (qualified dividends): Swan, Inc. Wren, Inc. Interest income: First National Bank Second City Bank County of Santa Fe, NM bonds 11,000 2,500 17,000 During the year, Devon and his sole proprietorship were involved in the following property transactions. Stock transactions were reported to Devon on Form 1099-B; basis was not reported to the IRS. a. Sold Blue, Inc. stock for $45,000 on March 12, 2019. He had purchased the stock on September 5, 2016, for $50,000. b. Received an inheritance of $300,000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2019, and invested $100,000 in Gold, Inc. stock on May 30, 2019. c. Received Orange, Inc. stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2019. Her adjusted basis for the stock was $5,000. No Federal gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2013. Devon sold the stock on July 1, 2019, for $22,000. d. On July 15, 2019, Devon sold one-half of the Green, Inc. stock for $40,000. e. Devon was notified on August 1, 2019, that Yellow, Inc. stock he purchased from a colleague on September 1, 2018, for $52,500 had become worthless. Although he understood that investing in Yellow was risky, Devon did not anticipate that the corporation would declare bankruptcy. f. On August 15, 2019, Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devon's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2016. g. On December 1, 2019, Devon sold the condominium in which he had been living for the past 20 years (1844 Lighthouse Lane, Albuquerque, NM 87131) and moved into a rented townhouse. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Devon purchased the condominium for $180,000. Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. $9,500 Medical expenses (before the 7.5%-of-AGI floor) Property taxes on residence 5,800 State income taxes 4,000 10,000 Charitable contributions Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. Medical expenses (before the 7.5%-of-AGI floor) Property taxes on residence $9,500 5,800 State income taxes 4,000 Charitable contributions Mortgage interest on residence (First National Bank) Sales taxes paid 10,000 9,900 5,000 During the year, Devon makes estimated Federal income tax payments of $35,000. Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the year, and he does not want $3 to go to the Presidential Election Campaign Fund. Devon's wife, Ariane, passed away in 2015. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45- 6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory; the business operates as Devon's Copy Shop, 422 E. Main Street, Albuquerque, NM 87131, IRS business activity code: 453990. His revenues and expenses for 2019 are as follows. Sales revenue Cost of goods sold (based on purchases for the year) Salary expense Rent expense Utilities $740,000 405,000 88,000 30,000 8,000 Telephone 6,500 Advertising 4,000 Bad debts 5,000 Depreciation* 21,000 Health insurance** 26,000 Accounting and legal fees 7,000 Supplies 1,000 *New office equipment ($21,000); Devon chose to use the immediate expense election. ** $18,000 for employees and $8,000 for Devon. Other income received by Devon includes the following. $10,000 2,000 Other income received by Devon includes the following. Dividend income (qualified dividends): Swan, Inc. Wren, Inc. Interest income: First National Bank Second City Bank County of Santa Fe, NM bonds 11,000 2,500 17,000 During the year, Devon and his sole proprietorship were involved in the following property transactions. Stock transactions were reported to Devon on Form 1099-B; basis was not reported to the IRS. a. Sold Blue, Inc. stock for $45,000 on March 12, 2019. He had purchased the stock on September 5, 2016, for $50,000. b. Received an inheritance of $300,000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2019, and invested $100,000 in Gold, Inc. stock on May 30, 2019. c. Received Orange, Inc. stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2019. Her adjusted basis for the stock was $5,000. No Federal gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2013. Devon sold the stock on July 1, 2019, for $22,000. d. On July 15, 2019, Devon sold one-half of the Green, Inc. stock for $40,000. e. Devon was notified on August 1, 2019, that Yellow, Inc. stock he purchased from a colleague on September 1, 2018, for $52,500 had become worthless. Although he understood that investing in Yellow was risky, Devon did not anticipate that the corporation would declare bankruptcy. f. On August 15, 2019, Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devon's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2016. g. On December 1, 2019, Devon sold the condominium in which he had been living for the past 20 years (1844 Lighthouse Lane, Albuquerque, NM 87131) and moved into a rented townhouse. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Devon purchased the condominium for $180,000. Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. $9,500 Medical expenses (before the 7.5%-of-AGI floor) Property taxes on residence 5,800 State income taxes 4,000 10,000 Charitable contributions Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. Medical expenses (before the 7.5%-of-AGI floor) Property taxes on residence $9,500 5,800 State income taxes 4,000 Charitable contributions Mortgage interest on residence (First National Bank) Sales taxes paid 10,000 9,900 5,000 During the year, Devon makes estimated Federal income tax payments of $35,000