Question
Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland, NC 27898. Shellys W-2 wages $ 55,800 Federal withholding 10,044
Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland, NC 27898.
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Shellys W-2 wages | $ | 55,800 |
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Federal withholding |
| 10,044 |
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Social security wages |
| 55,800 |
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Social security withholding |
| 3,460 |
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Medicare withholding |
| 809 |
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State withholding |
| 3,348 |
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1099-INT New Bank |
| 532 |
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1099-DIV XYZ, Inc. |
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Ordinary dividends |
| 258 |
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Qualified dividends |
| 258 |
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Shelly had the following itemized deductions:
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State income tax withholding (from W-2) | $ | 3,348 |
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State income tax paid with 2016 return |
| 600 |
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Real estate tax |
| 4,200 |
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Mortgage interest |
| 11,800 |
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Charitable contributions |
| 2,500 |
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Shelly also started her own home design consulting business in March 2017 (Business code, 238990, Cash basis). The results of her business operations for 2017 follow:
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Gross receipts from clients |
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| $ | 154,000 |
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Vehicle mileage | 21,000 business miles (2,100 per month) |
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| 32,000 total miles during the year |
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| 2010 Chevy Suburban |
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| Placed in service 03/01/17 |
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Postage |
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| (750 | ) |
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Office supplies |
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| (1,500 | ) |
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State license fees |
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| (155 | ) |
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Supplies |
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| (5,300 | ) |
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Professional fees |
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| (2,500 | ) |
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Design software |
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| (1,000 | ) |
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Professional education programs (registration) |
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| (550 | ) |
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Travel to education program |
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Airplane |
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| (350 | ) |
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Lodging $119/night 3 nights |
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Meals per diem 3 days |
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| 154 |
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Business Assets | Date Purchased |
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| Cost |
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Laptop | 6/08/17 |
| $ | 2,500 |
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Computer | 3/05/17 |
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| 5,700 |
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Printer | 3/01/17 |
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| 1,800 |
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Copier | 6/02/17 |
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| 1,700 |
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Furniture | 4/01/17 |
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| 5,000 |
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Building | 3/01/17 |
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| 175,000 |
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Phone |
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| (600 | ) |
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Internet service |
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| (450 | ) |
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Rent |
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| (8,300 | ) |
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Insurance |
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| (1,700 | ) |
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Shelly made a $29,000 estimated tax payment on September 15, 2017. Prepare Shellys Form 1040 for 2017 including all of the supplementary schedules. Schedule A, Schedule B, Schedule C, Form 4562, and Schedule SE are required. Section 179 is elected on all eligible assets in 2017. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Shelly had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions.
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