Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon does not want $3 to go to the Presidential Election Campaign Fund.

Devon's wife, Ariane, passed away in 2015. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45-6788.

Devon owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory. The Business Activity Code for his business is 311200 (Breakfast Cereal Manufacturing). This is entered in box B on Sch. C. His revenues and expenses for 2019 for his business are as follows:

Sales revenue	$740,000
Cost of goods sold (based on purchases for the year)	405,000
Salary expense	88,000
Rent expense	30,000
Utilities	8,000
Telephone	6,500
Advertising	4,000
Bad debt	5,000
Depreciation*	21,000
Health insurance**	26,000
Accounting & legal fees	7,000
Supplies	1,000
*New office equipment ($21,000); Kevin uses the immediate expense election
**$18,000 for employees and $8,000 for Devon.

Other income received by Devon includes the following:

Dividend income (qualified dividends):
Swan, Inc.	$10,000
Wren, Inc.	2,000
Interest income
First National Bank	11,000
Second City Bank	2,500
County of Santa Fe, NM bonds	17,000

During the year, Devon and his sole proprietorship had the following property transactions:

1. Sold Blue, Inc. stock for $45,000 on March 12, 2019. He purchased the stock on September 5, 2016, for $50,000.
2. Received inheritance of $300,000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2019, and invested $100,000 in Gold, Inc. stock on May 30, 2019.
3. Received Orange, In stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2019. Her adjusted basis for the stock was $5,000. No gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2013. Devon sold the stock on July 1, 2019, for $22,000.
4. On July 15, 2019, Devon sold one-half of the stock in Green, Inc. for $40,000.
5. On September 27, 2019, Kevin received a pro rata 10% stock dividend on the 600 shares of stock he owns in Black, Inc. he had bought the stock on March 5, 2012, for $20 a shar On December 16, 2019, he sold the 60 dividend shares for $55 a share.
6. On December 1, 2019, Kevin sold the condo in which he had been living for the past 20 years (1844 Lighthouse Lane, Albuquerque, NM 87131) and moved into a rented townhouse. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Kevin purchased the condo for $180,000 in 1999.

Devons potential itemized deductions, exclusive of the aforementioned information, are as follows:

Medical expenses (before the 7.5% floor)	$9,500
Property taxes on residence	5,800
State income taxes	4,000
Charitable contributions (to qualified charities)	10,000
Mortgage interest on residence (First National Bank)	9,900
Sales tax paid	5,000

During the year, Kevin made estimated Federal income tax payments of $35,000.

Compute Devons taxes for 2019 assuming that he makes any available elections that will reduce the tax. You will need Forms 1040, 8949 and Schedules 1, 2, 3, A, B, C, D, and SE.

You would also normally complete Form 4562 Depreciation but since hes electing to immediately expense the assets purchased, just include the full purchase amount under depreciation on Sch. C.

All data for capital gains (long-term and short-term) is first entered on Form 8949, and then netted on Sch. D. Schedules 2 & 3 only require one line of information self-employment tax amount (Sch. 2) and 2019 estimated tax payments made to the IRS (Sch. 3).