Question: How to do the tax return? First Fiddle filed Forms 1099 for payments made to contractors when required to do so. Shaun and Camille paid

 How to do the tax return? First Fiddle filed Forms 1099

How to do the tax return?

First Fiddle filed Forms 1099 for payments made to contractors when required to do so. Shaun and Camille paid $15,265 for health insurance for the family (for the time she was working at First Fiddle). This amount is not included in the totals for First Fiddle above. Neither Shaun nor Camille had access to employer-provided health insurance during the year while they were paying the premiums for this policy. In need of cash to support First Fiddle, in February, Camille withdrew $22.000 from her traditional 401(k) account. She received a Form 1099-R with the following information: 1. Gross Distribution: $21,000 2a. Taxable Amount: $21,000 4. Federal Income Tax Withheld: $2,100 7. Distribution code: Turning to Shaun's business, Shaun always dreamed of traveling to Mexico, which led him to pursue a side gig as a travel agent. Shaun received a Form 1099-Misc from his largest client reporting that he received $6,435 from this client during 2019 as payment for his travel services. Shaun received an additional $17,018 from clients who were not required to issue Shaun a Form 1099. Shaun started his travel agent service in 2016 and he uses the cash method of accounting. He is the only person performing services in the business. He did not make any payments that require him to file a Form 1099. During the tax year, Shaun paid the following business-related expenses: Printer Paper $840 Printer Toner $1.775 Miscellaneous supplies $874 Advertising $2,347 Professional subscriptions $832 Meals $580 On April 17, 2019 Shaun purchased a new laptop computer for his business at a cost of $3,457. On the same day, he sold his old laptop for $850. It was originally purchased for $2.700 on June 1, 2016 (it was the only asset he purchased in 2016; he did not take 179 or bonus depreciation on the old laptop). Shaun also purchased a new laser printer/photocopier combination at a cost of $655 on the same date. In April. Shaun purchased computer software to use in his business for $549. These assets are used entirely in Shaun's business (there is no personal use). Assume this property is not "listed property. Shaun does not elect out of bonus depreciation. Shaun does not want to use any Section 179 expensing, even if it would be beneficial to allocate it to his assets instead of, or in addition to, Camille's assets. Shaun capitalizes these assets for financial accounting purposes and does not have an audited financial statement. First Fiddle filed Forms 1099 for payments made to contractors when required to do so. Shaun and Camille paid $15,265 for health insurance for the family (for the time she was working at First Fiddle). This amount is not included in the totals for First Fiddle above. Neither Shaun nor Camille had access to employer-provided health insurance during the year while they were paying the premiums for this policy. In need of cash to support First Fiddle, in February, Camille withdrew $22.000 from her traditional 401(k) account. She received a Form 1099-R with the following information: 1. Gross Distribution: $21,000 2a. Taxable Amount: $21,000 4. Federal Income Tax Withheld: $2,100 7. Distribution code: Turning to Shaun's business, Shaun always dreamed of traveling to Mexico, which led him to pursue a side gig as a travel agent. Shaun received a Form 1099-Misc from his largest client reporting that he received $6,435 from this client during 2019 as payment for his travel services. Shaun received an additional $17,018 from clients who were not required to issue Shaun a Form 1099. Shaun started his travel agent service in 2016 and he uses the cash method of accounting. He is the only person performing services in the business. He did not make any payments that require him to file a Form 1099. During the tax year, Shaun paid the following business-related expenses: Printer Paper $840 Printer Toner $1.775 Miscellaneous supplies $874 Advertising $2,347 Professional subscriptions $832 Meals $580 On April 17, 2019 Shaun purchased a new laptop computer for his business at a cost of $3,457. On the same day, he sold his old laptop for $850. It was originally purchased for $2.700 on June 1, 2016 (it was the only asset he purchased in 2016; he did not take 179 or bonus depreciation on the old laptop). Shaun also purchased a new laser printer/photocopier combination at a cost of $655 on the same date. In April. Shaun purchased computer software to use in his business for $549. These assets are used entirely in Shaun's business (there is no personal use). Assume this property is not "listed property. Shaun does not elect out of bonus depreciation. Shaun does not want to use any Section 179 expensing, even if it would be beneficial to allocate it to his assets instead of, or in addition to, Camille's assets. Shaun capitalizes these assets for financial accounting purposes and does not have an audited financial statement

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