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This is the full question. I need the answers please. You are to perform a federal tax research/preparation assignment. Specifically, I would like you to
This is the full question. I need the answers please.
You are to perform a federal tax research/preparation assignment. Specifically, I would like you to use various resources, such as your text book, notes, internet and/or tax preparation programs, in solving the following tax problem: John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information for 2020 includes: $94,000 * . Earnings from his consulting business: Personal Expenses (from Schedule A (see below*)) Other expenses (from Schedule C (see below **)) Gain or Loss on sale of a house (see below ***) Tax Withholdings (prepayments) * . *** $6,000 * Personal expenses: Doctor visits for physical and dental exams Prescription drugs Vitamins Medical insurance premium payments Cosmetic surgery to improve appearance State and local income taxes State property taxes Legal fees to prepare a will Accounting fees for Form A analysis Interest on mortgage used to purchase qualified residence, the mortgage amount is $350,000) $ 4,500 $ 2,770 $ 830 $10,500 $ 6,650 $ 8,000 $ 3,500 $ 2,500 $ 1,300 $12,250 ** Other expenses: Legal fees for business conflict resolution Political contributions to local organization $10,000 $ 3.000 1 Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) Airfare $1,600 Hotel - $150 per night Meals - $50 per day . Lunches and dinners with customers to discuss business Continuing education to retain John's license $4,600 $ 800 *** Gain or loss (short term or long term) on the house sale: John purchased a house in June 2007 for $300,000 He added basement for $30,000 He repainted roof for $2,500 He repaired 3 broken doors (but not the home office door) for $3,500 John sold the house in February 2020 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000. Depreciation allowed and taken as a business expense: $70,000 Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020. You may use the Internal Revenue web-site (www.irs.gov) to download any forms you will need, but don't have to. You are to perform a federal tax research/preparation assignment. Specifically, I would like you to use various resources, such as your text book, notes, internet and/or tax preparation programs, in solving the following tax problem: John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information for 2020 includes: $94,000 * . Earnings from his consulting business: Personal Expenses (from Schedule A (see below*)) Other expenses (from Schedule C (see below **)) Gain or Loss on sale of a house (see below ***) Tax Withholdings (prepayments) * . *** $6,000 * Personal expenses: Doctor visits for physical and dental exams Prescription drugs Vitamins Medical insurance premium payments Cosmetic surgery to improve appearance State and local income taxes State property taxes Legal fees to prepare a will Accounting fees for Form A analysis Interest on mortgage used to purchase qualified residence, the mortgage amount is $350,000) $ 4,500 $ 2,770 $ 830 $10,500 $ 6,650 $ 8,000 $ 3,500 $ 2,500 $ 1,300 $12,250 ** Other expenses: Legal fees for business conflict resolution Political contributions to local organization $10,000 $ 3.000 1 Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) Airfare $1,600 Hotel - $150 per night Meals - $50 per day . Lunches and dinners with customers to discuss business Continuing education to retain John's license $4,600 $ 800 *** Gain or loss (short term or long term) on the house sale: John purchased a house in June 2007 for $300,000 He added basement for $30,000 He repainted roof for $2,500 He repaired 3 broken doors (but not the home office door) for $3,500 John sold the house in February 2020 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000. Depreciation allowed and taken as a business expense: $70,000 Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020. You may use the Internal Revenue web-site (www.irs.gov) to download any forms you will need, but don't have toStep by Step Solution
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