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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.

Shellys W-2 wages

$

55,800

Federal withholding

10,044

Social security wages

55,800

Social security withholding

3,460

Medicare withholding

809

State withholding

3,348

1099-INT New Bank

532

1099-DIV XYZ, Inc.

Ordinary dividends

258

Qualified dividends

258

Shelly had the following itemized deductions:

State income tax withholding (from W-2)

$

3,348

State income tax paid with 2016 return

600

Real estate tax

4,200

Mortgage interest

11,800

Charitable contributions

2,500

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:

Gross receipts from clients

$

154,000

Vehicle mileage

21,000 business miles (2,100 per month)

32,000 total miles during the year

2010 Chevy Suburban

Placed in service 03/01/17

Postage

(750

)

Office supplies

(1,500

)

State license fees

(155

)

Supplies

(5,300

)

Professional fees

(2,500

)

Design software

(1,000

)

Professional education programs (registration)

(550

)

Travel to education program

Airplane

(350

)

Lodging $119/night 3 nights

Meals per diem 3 days

154

Business Assets

Date Purchased

Cost

Laptop

6/08/17

$

2,500

Computer

3/05/17

5,700

Printer

3/01/17

1,800

Copier

6/02/17

1,700

Furniture

4/01/17

5,000

Building

3/01/17

175,000

Phone

(600

)

Internet service

(450

)

Rent

(8,300

)

Insurance

(1,700

)

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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