schedule 1, schedule B, schedule C

33 Instructions Comprehensive Problem 32A Russell (birthdate February 2, 1969) and Linda (birthdate August 30, 1974) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 321456789) The butiran la operated out of their home, located at 1234 Cherry Lane, Nampa, ID 83687. The principal bosiness code is 561730. Russell's bookkeeper provided the following income statement from the landscaping business Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2010 to 12/21/2016 102,350 34,600 17,100 134,050 57.000 48.570 11,001 128,575 REVENUES maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance Equipment Special Clothing and Safety Shoes 3.43 6,433 0,700 12,600 300 10.651 560 Contact Usbor 7.700 6,790 Instructions 7,780 6,790 119,473 110,953 14,577 17,622 1,500 700 600 500 Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Entertainment Subscriptions Business Gifts Telephone Training Travel 4,000 870 2,300 2,100 120 120 790 600 2,015 1,956 1,975 865 750 Other 1,700 2,724 TOTAL OPERATING EXPENSES 15,865 10,320 NET INCOME (LOSS) ($1,280) $7,302 The bookkeeper provided the following additionat information: Donations expense is a $600 donation to the Campaign to re-Elect Senator Ami Dahla Training includes $575 for an educational Seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper , The tuition fees, and book's cost $1,400. He also drove his personal car 57 miles round trip to Boho to take exams three times for a total of 171 mitos, No business gift exceeded $22 in value. The subscription in for a trade magazine titled Plants Unlimited, The businesses the cash mathottantine and has no accounts recheinunn held for Instructions NET INCOME (LOSS) ($1,288) $7,302 The bookkeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. Training includes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper. The tuition fees, and books cost $1,400 He also drove his personal car 57 miles round trip to Boise to take exams three times for a total of 171 miles. No business gift exceeded $22 in value. The subscription is for a trade magazine titled Plants Unlimited. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 160 square feet and their house has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs also have the following interest Income for the year from corporate bonds Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Langs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both will and Martha are full-timu high school students, ages 17 and 18, respectively, and each can be claimed for the $500 other dependent credit. Russell's Social Security number in 664-96-5678 and Linda's is 554-08-3946. They made an estimated tax payment to the IRS of $300 on December 31 2020. The Longe received a $2,400 EIP in 2020. Required: Complete the long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full year health coverage and neither taxpayer wants to contribute to the presidential election campaign Do not complete Form 4562 (depreciation). You may ignore any related self-employment taxes. Make realistic assumptions about any missing data. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negatiya numbers . If an amount box does not require an entry or the answer is zero, enter"0" . Do not round any division. Il required, round your final answers to the nearest dollar Schedule 1 Complete the Long's Schedule 1. SCHEDULE 1 OMB No 1545-0074 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Attach to Form 1040, 040-5R, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information Sequence No. 01 Name() shown on Form 1040 1040SR, or 1040-NR Your social security number Russell and Linda Long 664-98-5678 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 20 Alimony received 2a Date of original divorce or separation agreement (see Instructions) Business income or loss). Attach Schedule 4 Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, corporations, trusts, etc. Attach Schedule Farm Income or loss). Attach Schedule Unemployment compensation 3 Other Income. Lidt type and amount 3 3 4 5 6 6 7 7 8 Combine lines 1 through B. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income Schedule B Complete the longs Schedule B SCHEDULE B OMB No 1545-0074 Interest and Ordinary Dividends (Form 1040) 2020 Attachment Go to www.irs.gov/Scheduled for instructions and the latest information. Department of the Treasury Internal Revenue Service (99) Attach to Form 1040 or 1040-SR. Sequence No. 08 Name() shown on return Your social security number Russell and Linda Long 664-98-5678 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount buyer used the property as a personal residence, see the instructions and list this Interest interest first. Also, show that buyer's social security number and address (See Instructions and the instructions for Forms 1040 and 1040-SR, line 253 1 Note: If you received a form 1099-INT, Form 1099-0100 substitute statement from a brokerage form list the firm's name as the payer 2 2 Add the amounts on line 1 Schedule 2 3 name as the payer and enter the total Interest shown on that form. Add the amounts on line 1 3 Excludable interest on Series EE and U.S. Savings bonds issued after 1989. Altach Form 3815 4 Subtract line from line 2. Enter the result here and on Form 1040 or 1040-SR, line 25 Note: If line 4 is over $1,500, you must complete Part III 5 Ust name of payer 4 Amount Part 11 Ordinary Dividends Lucky Ace Casino Nevada National Bank Potato High Yield Dividend Mutual Fund (See Instructions and the instructions for Forms 1040 and 1040-5, line 3b.) 5 Note: If you received a Form 3099-DIV or substitute statement from a broken name as the aver and enter the ordinary dividends shown on that form 6 Add the amounts online Enter the total here and on Form 1040 and 1040 4 Schedule firm, list the firm's name as the paver and enter the ordinary dividends shown on that form 6 Add the amounts on line 5. Enter the total here and on Form 1040 and 1040 SR, line 3b 6 Note: If line 6 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferorto, a foreign Yes No Foreign trust Accounts 7 At any time during 2020, did you have a financial interest in or signature authority over a financial and Trusts account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions.. X Caution: If required, failure to fill incEN Yes, are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts Form 114 may result (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its in substantial Instructions for filing requirements and exceptions to those requirements penalties. See If you are required to file TICEN Form 114, enter the name of the foreign country where the Instructions financial account is located During 2020, did you receive a distribution from, or were you the grantor of, or transfero to, a foreign trust? Yes, you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, see your tax return instructions Cat No. 17146N Schedule (Form 1040) 2020 Schochaine Complete Russell Long Schedule A C SCHEDULE C Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. 2020 Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally Attachment Internal Revenue Service (99) must le Form 1065 Sequence No. 09 Name of proprietor Social security number (SSN) Russell Long 664-98-5678 Principal business or profession, including product or service (see instructions) B Enter code from instructions Landscaping 561730 Business name. If no separate business name, teave blank D Employer ID number (EIN) (see instr.) Lowas Landscapes Unlimited 321-45-6789 Business address induding suite or room no.) 1234 Cherry Lane City, town or post office, state, and ZIP code Nampa, to 83607 Accounting method: (1) Cash (2) Accrual () Other (specity) Did you materially participate in the operation of this business during 20207 "Nase instructions for limit on Yes No losses If you started or acquired this business during 2020, check here Did you make any payments in 2020 that would require you to the form 1009) (see instruction) Yes No It You, did you or will you fin required Forms 10097 Yes No Part 1 Income Gross cits or a Sestructions for ne 1 and check the box if this income was reported to you E F S 1 Peret Schedule 1 2 3 4 5 6 7 Parti Income 1 Grous receipts of sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee' box on that form was checked 2 Returns and allowances 3 Subtract line 2 from line 1 4 Cost of goods sold (from line 42) 5 Gross profit. Subtract line 4 from line 3.... 6 Other Income, including federal and state gasoline or fuel tax creditor refund (see instructions) 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30, 8 Advertising 18 Office expense (see Instructions) Car and truck expenses Pension and profit sharing plans Instructions) 20 Rent or lease (see Instructions) 10 Commissions and fees 10 a Veides, machinery and equipment 11 Contract labore instructions) 11 Other business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 170 22 Supplies (not induded in Part II) expense deduction (not included 23 and licenses in Part II) (see instructions) 24 Travel and meals 14 Employee benefit programs a Travel other than on line 11 14 Ottimaal 18 19 200 201 21 22 23 24 cheide 14 Employee benefit programs a Travel 240 (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 245 16 Interest (see instructions): 25 ilities 25 a Mortgage paid to banks, etc.) 160 26 Wages (less employment credits). 26 b Other 165 270 Other expenses (from line 48). 270 17 Legal and professional services 17 b Reserved for future use 27b 21 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 29 Tentative profit or (los). Subtract line 28 from tine 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 3829 unless using the simplified method. See Instructions Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or loss). Subtract line 30 from line 29 If a profit, enter on both Schedule 1 (Form 1040), line 13, and on Schedule SE, line 2 31 Cut you checked the box on line 1, se instructions) Estates and trusts, enter on Form 1041, line 3 . If loss, you must go to Ine 32 } 32 If you have a loss, check the box that describes your investment in this activity See Instructions . If you checked 32, enter the loss on both Schedule 1 (Form 1040), line 3 and on Schedule SE 32a All investment is at line 2. If you checked the box on line 1. see the line Instructions). Estates and trusts, enter on Form } 1041, line 3 326 Some investment is . If you checked 32b. You must attach Form 6190. Your loss may be limited notat Schedule Yes No Yes No Yes No Yes No 45 Was your vehide available for personal use during off-duty hours? 46 Do you (or your spouse) have another vehide available for personal use? 47 Do you have evidence to support your deduction? b. Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 302 Telephone Business is Clothing and safety shoes Education seminar and training Travel Subscriptions Other 40 48 Total other expenses. Enter here and on line 27 Schedule (Form 1040) 2020 T TOWN Incred 33 Instructions Comprehensive Problem 32A Russell (birthdate February 2, 1969) and Linda (birthdate August 30, 1974) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 321456789) The butiran la operated out of their home, located at 1234 Cherry Lane, Nampa, ID 83687. The principal bosiness code is 561730. Russell's bookkeeper provided the following income statement from the landscaping business Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2010 to 12/21/2016 102,350 34,600 17,100 134,050 57.000 48.570 11,001 128,575 REVENUES maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Equipment Rental Maintenance Equipment Special Clothing and Safety Shoes 3.43 6,433 0,700 12,600 300 10.651 560 Contact Usbor 7.700 6,790 Instructions 7,780 6,790 119,473 110,953 14,577 17,622 1,500 700 600 500 Contract Labor TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Donations Insurance Meals and Entertainment Subscriptions Business Gifts Telephone Training Travel 4,000 870 2,300 2,100 120 120 790 600 2,015 1,956 1,975 865 750 Other 1,700 2,724 TOTAL OPERATING EXPENSES 15,865 10,320 NET INCOME (LOSS) ($1,280) $7,302 The bookkeeper provided the following additionat information: Donations expense is a $600 donation to the Campaign to re-Elect Senator Ami Dahla Training includes $575 for an educational Seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper , The tuition fees, and book's cost $1,400. He also drove his personal car 57 miles round trip to Boho to take exams three times for a total of 171 mitos, No business gift exceeded $22 in value. The subscription in for a trade magazine titled Plants Unlimited, The businesses the cash mathottantine and has no accounts recheinunn held for Instructions NET INCOME (LOSS) ($1,288) $7,302 The bookkeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. Training includes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program in landscaping in order to improve his skills and advertise his designation as a certified landscaper. The tuition fees, and books cost $1,400 He also drove his personal car 57 miles round trip to Boise to take exams three times for a total of 171 miles. No business gift exceeded $22 in value. The subscription is for a trade magazine titled Plants Unlimited. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 160 square feet and their house has a total of 1,600 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year. The Longs also have the following interest Income for the year from corporate bonds Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Langs have two dependent children, Bill (Social Security number 123-23-7654) and Martha (Social Security number 345-67-8654). Both will and Martha are full-timu high school students, ages 17 and 18, respectively, and each can be claimed for the $500 other dependent credit. Russell's Social Security number in 664-96-5678 and Linda's is 554-08-3946. They made an estimated tax payment to the IRS of $300 on December 31 2020. The Longe received a $2,400 EIP in 2020. Required: Complete the long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full year health coverage and neither taxpayer wants to contribute to the presidential election campaign Do not complete Form 4562 (depreciation). You may ignore any related self-employment taxes. Make realistic assumptions about any missing data. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negatiya numbers . If an amount box does not require an entry or the answer is zero, enter"0" . Do not round any division. Il required, round your final answers to the nearest dollar Schedule 1 Complete the Long's Schedule 1. SCHEDULE 1 OMB No 1545-0074 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Attach to Form 1040, 040-5R, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information Sequence No. 01 Name() shown on Form 1040 1040SR, or 1040-NR Your social security number Russell and Linda Long 664-98-5678 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 20 Alimony received 2a Date of original divorce or separation agreement (see Instructions) Business income or loss). Attach Schedule 4 Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, corporations, trusts, etc. Attach Schedule Farm Income or loss). Attach Schedule Unemployment compensation 3 Other Income. Lidt type and amount 3 3 4 5 6 6 7 7 8 Combine lines 1 through B. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income Schedule B Complete the longs Schedule B SCHEDULE B OMB No 1545-0074 Interest and Ordinary Dividends (Form 1040) 2020 Attachment Go to www.irs.gov/Scheduled for instructions and the latest information. Department of the Treasury Internal Revenue Service (99) Attach to Form 1040 or 1040-SR. Sequence No. 08 Name() shown on return Your social security number Russell and Linda Long 664-98-5678 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount buyer used the property as a personal residence, see the instructions and list this Interest interest first. Also, show that buyer's social security number and address (See Instructions and the instructions for Forms 1040 and 1040-SR, line 253 1 Note: If you received a form 1099-INT, Form 1099-0100 substitute statement from a brokerage form list the firm's name as the payer 2 2 Add the amounts on line 1 Schedule 2 3 name as the payer and enter the total Interest shown on that form. Add the amounts on line 1 3 Excludable interest on Series EE and U.S. Savings bonds issued after 1989. Altach Form 3815 4 Subtract line from line 2. Enter the result here and on Form 1040 or 1040-SR, line 25 Note: If line 4 is over $1,500, you must complete Part III 5 Ust name of payer 4 Amount Part 11 Ordinary Dividends Lucky Ace Casino Nevada National Bank Potato High Yield Dividend Mutual Fund (See Instructions and the instructions for Forms 1040 and 1040-5, line 3b.) 5 Note: If you received a Form 3099-DIV or substitute statement from a broken name as the aver and enter the ordinary dividends shown on that form 6 Add the amounts online Enter the total here and on Form 1040 and 1040 4 Schedule firm, list the firm's name as the paver and enter the ordinary dividends shown on that form 6 Add the amounts on line 5. Enter the total here and on Form 1040 and 1040 SR, line 3b 6 Note: If line 6 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferorto, a foreign Yes No Foreign trust Accounts 7 At any time during 2020, did you have a financial interest in or signature authority over a financial and Trusts account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions.. X Caution: If required, failure to fill incEN Yes, are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts Form 114 may result (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its in substantial Instructions for filing requirements and exceptions to those requirements penalties. See If you are required to file TICEN Form 114, enter the name of the foreign country where the Instructions financial account is located During 2020, did you receive a distribution from, or were you the grantor of, or transfero to, a foreign trust? Yes, you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, see your tax return instructions Cat No. 17146N Schedule (Form 1040) 2020 Schochaine Complete Russell Long Schedule A C SCHEDULE C Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. 2020 Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally Attachment Internal Revenue Service (99) must le Form 1065 Sequence No. 09 Name of proprietor Social security number (SSN) Russell Long 664-98-5678 Principal business or profession, including product or service (see instructions) B Enter code from instructions Landscaping 561730 Business name. If no separate business name, teave blank D Employer ID number (EIN) (see instr.) Lowas Landscapes Unlimited 321-45-6789 Business address induding suite or room no.) 1234 Cherry Lane City, town or post office, state, and ZIP code Nampa, to 83607 Accounting method: (1) Cash (2) Accrual () Other (specity) Did you materially participate in the operation of this business during 20207 "Nase instructions for limit on Yes No losses If you started or acquired this business during 2020, check here Did you make any payments in 2020 that would require you to the form 1009) (see instruction) Yes No It You, did you or will you fin required Forms 10097 Yes No Part 1 Income Gross cits or a Sestructions for ne 1 and check the box if this income was reported to you E F S 1 Peret Schedule 1 2 3 4 5 6 7 Parti Income 1 Grous receipts of sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee' box on that form was checked 2 Returns and allowances 3 Subtract line 2 from line 1 4 Cost of goods sold (from line 42) 5 Gross profit. Subtract line 4 from line 3.... 6 Other Income, including federal and state gasoline or fuel tax creditor refund (see instructions) 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30, 8 Advertising 18 Office expense (see Instructions) Car and truck expenses Pension and profit sharing plans Instructions) 20 Rent or lease (see Instructions) 10 Commissions and fees 10 a Veides, machinery and equipment 11 Contract labore instructions) 11 Other business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 170 22 Supplies (not induded in Part II) expense deduction (not included 23 and licenses in Part II) (see instructions) 24 Travel and meals 14 Employee benefit programs a Travel other than on line 11 14 Ottimaal 18 19 200 201 21 22 23 24 cheide 14 Employee benefit programs a Travel 240 (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 245 16 Interest (see instructions): 25 ilities 25 a Mortgage paid to banks, etc.) 160 26 Wages (less employment credits). 26 b Other 165 270 Other expenses (from line 48). 270 17 Legal and professional services 17 b Reserved for future use 27b 21 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 29 Tentative profit or (los). Subtract line 28 from tine 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 3829 unless using the simplified method. See Instructions Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or loss). Subtract line 30 from line 29 If a profit, enter on both Schedule 1 (Form 1040), line 13, and on Schedule SE, line 2 31 Cut you checked the box on line 1, se instructions) Estates and trusts, enter on Form 1041, line 3 . If loss, you must go to Ine 32 } 32 If you have a loss, check the box that describes your investment in this activity See Instructions . If you checked 32, enter the loss on both Schedule 1 (Form 1040), line 3 and on Schedule SE 32a All investment is at line 2. If you checked the box on line 1. see the line Instructions). Estates and trusts, enter on Form } 1041, line 3 326 Some investment is . If you checked 32b. You must attach Form 6190. Your loss may be limited notat Schedule Yes No Yes No Yes No Yes No 45 Was your vehide available for personal use during off-duty hours? 46 Do you (or your spouse) have another vehide available for personal use? 47 Do you have evidence to support your deduction? b. Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 302 Telephone Business is Clothing and safety shoes Education seminar and training Travel Subscriptions Other 40 48 Total other expenses. Enter here and on line 27 Schedule (Form 1040) 2020 T TOWN Incred