Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

total itemized deductions are given - $12,300 using the information, fill out SCHEDULE A 2018 FORM 1:9-72 George Large (SSN 000-11-1111) and his wife Marge

total itemized deductions are given - $12,300
using the information, fill out SCHEDULE A 2018 FORM
image text in transcribed
image text in transcribed
1:9-72 George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and enter- tainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The busi- ness code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500 5,000 SCHEDULE A Form 1040) Itemized Deductions Go to www.in.gov/Schedule for instructions and the latest Information Attach to Form 1040 you are coming an qua fed disastersson Form the instructions for 2018 W c Caution Medical and Dental Expenses Taxes You Paid Caution Do not include expenses bursed or paid by others 1 Medical and dental expenses instructions . . . 2 Enter amount from Form 1040, line 7 2 3 Multiply line 2 by 75% 0.075) 4 Subtract line from line 1. Mine 3 is more than line 1. enter-O- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include the income taxes or general sales taxes online sa but not both you clect to include general sales taxes instead of income taxes, check this box . . . . State and local real estate taxes se instructions State and local personal property taxes - - d Add lines Sa through 5c Enter the smaller of line 5d or $10,000 $5,000 if married filing separately 6 Other taxes. List type and amount Interest You Paid Cut You on may be ruction c 7 Add lines 5e and 6 & Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy, build, or improve your home, see instructions and check this box. . . . 0 a Home mortgage interest and points reported to you on Form 1098 . . b Home mortgage interest not reported to you on Form 1098. paid to the person from whom you bought the home, see instructions and show that person's name, identifying no.. and address c Points not reported to you on Form 1098 See instructions for speciales d Reserved. Add lines Ba through 8c.. 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines Band 9 Gifts to 11 Guts by cash or check. If you made any gift of $250 or more. Charity See instructions 12 Other than by cash or check any gift of $250 or more, see had instructions. You must attach Form 8283 fover $500. - 12 13 Carryover from prior year 14 Add lines 11 through 13 Casualty and 15 Casualty and theft losses from a federally declared disaster other than not qualified Theft losses disaster losses Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Other-from list in instructions. List type and amount Itemid Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also enter this amount on Itemized for 1040 in 8 Deductions 18 you clect to homice deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice, see the instructions for Form 1040 Catec

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cengage Learnings Online General Ledger For Heintz/parrys College Accounting, 2, 2 Terms (12 Months)

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305669991, 9781305669994

More Books

Students also viewed these Accounting questions