Question: I need help completing the schedule 1, schedule 5, schedule b, schedule c and form 8829 for the problem below. Comprehensive Problem 3-2B Christopher Crosphit
I need help completing the schedule 1, schedule 5, schedule b, schedule c and form 8829 for the problem below.
Comprehensive Problem 3-2B
Christopher Crosphit (age 42) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190. Chris had the following income and expenses from the health club:
Income$216,100Expenses:Business insurance3,665Office supplies3,295Payroll98,900Payroll taxes9,112Travel2,420Equipment & club maintenance10,720Cleaning service8,775Equipment rent22,820Utilities (electric, water, gas)13,975Telephone2,778Rent32,590Advertising5,200Special workout clothing and boxing gloves780Subscription toBiceps Monthlymagazine120Educational seminar on weight training770Other expenses1,830
The business uses the cash method of accounting and has no accounts receivable or inventory held for resale.
Chris has the following interest income for the year:
Upper Piedmont Savings Bank savings account$12,831Morgan Bank bond portfolio interest12,025
(You may assume that the bond portfolio interest is from corporate bonds.)Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and he files his tax return as head of household. Arnold is an 18-year-old high school student; he does not qualify for the child tax credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities.
Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $1,000 on April 15, 2018.
Required:
Complete Form 1040 for Chris and the other schedules and forms provided. Assume the taxpayer had full-year health coverage and does not want to contribute to the presidential election campaign.
- Do not complete Form 4562 (depreciation). Make realistic assumptions about any missing data.
- If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers.
- If an amount box does not require an entry or the answer is zero, enter "0".
- Round any percentages to two decimal places.
- Round any dollar amounts to the nearest dollar.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
