Yes, US TAX

ropane nome (Focus on Chapters 6-8, 10), 65 points. 1. This question is worth 20 points Tim is single, age 45 and started a new business on 1/15/2018: he trains Major League Baseball pitchers. Following are various transactions for 2018: a) The following income and expenses are related to this business: Income $100,000 Mortgage interest 8,000 Property taxes 3,000 Utilities 5,000 Supplies and fees 7,000 Telephone 2,000 Estimated tax payments - Federal 15,000 b) He purchased and placed into service a commercial office building on 2/1/2018, the cost of the building and land was $300,000 (building -80% of the cost, the land -20% of the cast) c) He purchased and placed into service a computer on 2/15/2018 for $1.000. He does not take the section 179 deduction or bonus depreciation. d) He purchased and placed into service a desk for the business on 10/1/18 for $2,000. He does not take the section 179 deduction or bonus depreciation Requirements: 1. Prepare and wtfach 2018 tax form: Schedule C,pages 1 and 2. NOTE: After your group cover sheet Schedule C should be the first 2 pages of your group project. You do not have to complete the 4562 as we will do this together in class. However, total depreciation expense must still be reported on Sch C. Answer the following questions on a separate page: 2. Are business expense deductions FOR AGI or FROM AGI? 3. List any non-deductible expenses. 4. Provide your MACRS depreciation expense calculation for the () building. (b) calculator and (c) desk for 2018. Your answer should include the following: class life. (ii) convention used (half year or mid-quarter for the computer and desk - explain why/the rule), (ii) depreciation table # (from the back of Chapter 8), and (iv) a detailed calculation NOTE TIP: Your answer should look like this: 406) building - class life- (1) convention - (for the computer and desk only, indicate why you chose half year or mid-quarter and state the applicable rule as it applies to the facts) (ii) table used (iv) show your calculation 4(c) computer (list items() through (iv) as above 4(d) desk list items (i) through (iv) as above ropane nome (Focus on Chapters 6-8, 10), 65 points. 1. This question is worth 20 points Tim is single, age 45 and started a new business on 1/15/2018: he trains Major League Baseball pitchers. Following are various transactions for 2018: a) The following income and expenses are related to this business: Income $100,000 Mortgage interest 8,000 Property taxes 3,000 Utilities 5,000 Supplies and fees 7,000 Telephone 2,000 Estimated tax payments - Federal 15,000 b) He purchased and placed into service a commercial office building on 2/1/2018, the cost of the building and land was $300,000 (building -80% of the cost, the land -20% of the cast) c) He purchased and placed into service a computer on 2/15/2018 for $1.000. He does not take the section 179 deduction or bonus depreciation. d) He purchased and placed into service a desk for the business on 10/1/18 for $2,000. He does not take the section 179 deduction or bonus depreciation Requirements: 1. Prepare and wtfach 2018 tax form: Schedule C,pages 1 and 2. NOTE: After your group cover sheet Schedule C should be the first 2 pages of your group project. You do not have to complete the 4562 as we will do this together in class. However, total depreciation expense must still be reported on Sch C. Answer the following questions on a separate page: 2. Are business expense deductions FOR AGI or FROM AGI? 3. List any non-deductible expenses. 4. Provide your MACRS depreciation expense calculation for the () building. (b) calculator and (c) desk for 2018. Your answer should include the following: class life. (ii) convention used (half year or mid-quarter for the computer and desk - explain why/the rule), (ii) depreciation table # (from the back of Chapter 8), and (iv) a detailed calculation NOTE TIP: Your answer should look like this: 406) building - class life- (1) convention - (for the computer and desk only, indicate why you chose half year or mid-quarter and state the applicable rule as it applies to the facts) (ii) table used (iv) show your calculation 4(c) computer (list items() through (iv) as above 4(d) desk list items (i) through (iv) as above