Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95- 1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are:

Trish’s bookkeeper has provided the following book-basis fixed asset rollforward:

The truck is not considered a passenger automobile for purposes of the luxury automobile limitations.
Trish also has a qualified home office of 250 sq. ft. Her home is 2,000 sq. ft. Her 2015 purchase price and basis in the home, not including land, is $100,000 (the home’s market value is $150,000). She incurred the following costs in 2020 related to the entire home:

Required:

For tax purposes, Trish elected out of bonus depreciation in all years except 2020. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule above. Complete Trish’s Schedule C, Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data.

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Gross sales Returns and allowances Expenses: Beginning inventory (at cost) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising $ 85,000 101,000 186,000 71,000 $340,000 14,000 $115,000 24,400 2,000 5,000 56,400 4,400 2,200 750 6,200