Question - You will need to complete a Form 1040, Form 4562, Schedule C, and Schedule SE and submit them as file uploads. The PDF forms are available here and in the assessment instructions.
Jayne Smith is single with no dependents and is the sole proprietor of a consulting business. In 2015, she had gross receipts of $580,000. She also incurred the following expenses:
| Advertising |
6,000 |
| Employee Salaries |
120,000 |
| Employee Health Insurance Premiums |
14,000 |
| Health Insurance for Jayne |
3,000 |
| Meals and entertainment |
4,200 |
| Office Rent |
18,000 |
| Supplies |
15,600 |
| Taxes and licenses |
12,000 |
| Travel - lodging only |
6,000 |
| Utilities |
4,800 |
| Parking fees and tolls |
300 |
| Car insurance |
2400 |
| Car - fuel |
1500 |
She also made some purchases, which she wants to maximize:
A new car for business use for $35,000. She drove a total of 18,000 miles of which 12,000 was for business and the remaining miles were personal.
Purchased new computer technology equipment for $40,000.
Purchased 7-year fixtures on April 1 for $100,000 and on September 1 for $150,000.
Jayne has no itemized deductions or other income. She did make estimated income tax payments to the IRS for $25,000. She wants to maximize her deductions in this tax year.
Prepare all necessary tax forms for Jayne's return and submit.