Comprehensive Problem $8-1$

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 the cash basis. The income and expenses for the year are:

Gross sales$$345,000$Returns and allowances$14,000$Expenses:Beginning inventory $($at cost$)$$ $87,000$Add: purchases$100,000$Cost of goods available for sale$$187,000$Less: ending inventory $($at cost$)72,000$Cost of goods sold$$115,000$Rent$24,000$Insurance$3,000$Legal and accounting fees$5,000$Payroll$60,000$Payroll taxes$5,000$Utilities$2,000$Office supplies$800$Advertising$6,000$

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 $2018$ 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 $2023$ related to the entire home:

Utilities$$3,000$Cleaning$1,000$Insurance$1,100$Property taxes$2,000$

Required:

For tax purposes, Trish elected out of bonus depreciation in all years except $2023.$ 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 $8829,$ Form $4562,$ and Schedule SE$.$

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter $"0".$

If required round any dollar amount to the nearest dollar.

Part II Special Depreciation Allowance and Other Depreciation $($Don$\text{'}$t include listed property. See instructions.$)14$ Special depreciation allowance for qualified property $($other than listed property$)$ placed in service during the tax year. See instructions $.140$

$15$ Property subject to section $168($f$)(1)$ election $16$ Other depreciation $($including ACRS$)$

$1516$ Part III MACRS Depreciation $($Don$\text{'}$t include listed property. See instructions.$)$ Section A

$17$ MACRS deductions for assets placed in service in tax years beginning before $2023.18$ If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here. qquad

Section B$-$Assets Placed in Service During $2023$ Tax Year Using the General Depreciation System $($a$)$ Classification of property $($b$)$ Month and year placed in service $($c$)$ Basis for de $($business$/$investm $-$see instru reciation nt use only ions$)($d$)$ Recovery period

$($e$)$ Convention

$($f$)$ Method $($g$)$ Depreciation deduction $19$a $3-$year property b $5-$year property $05$ yrs $$ HY $200$ DB $$ J $$ c $7-$year property $07$ yrs $$ HY $$ V $200$ DB $$

Complete the table below showing the tax depreciation, by year.

Round your interim calculations to the whole dollar and then use in subsequent calculations.