Tax Optimization Mastery

This activity will provide practical insights into tax optimization, demonstrating the importance of the $6251$ form for individuals with specific income streams and deductions under the tax law.

Instructions:

Analyze the following information and complete the task:

Bruce Ellis, a $34-$year$-$old businessman, navigated a dynamic financial landscape in $2022$ with the following transactions:

Transaction Amount $($$$)$

Sales $515,000\mathrm{.}00$

Purchase $185,500\mathrm{.}00$

Ending Inventory $130,750\mathrm{.}00$

Beginning Inventory $165,000\mathrm{.}00$

Expenses:

Expense Category Amount $($$$)$

Salaries $19,200\mathrm{.}00$

Payroll Expenses $7,790\mathrm{.}00$

Repair & Maintenance $4,860\mathrm{.}00$

Insurance Expenses $7,080\mathrm{.}00$

Rent Expense $48,500\mathrm{.}00$

Utilities Expenses $14,380\mathrm{.}00$

Advertising Expenses $29,300\mathrm{.}00$

Professional Fee Expenses $48,900\mathrm{.}00$

Additional Information:

In $2022,$ Bruce made estimated payments of $$51,375$ and contributed $$9,150$ for Social Security.

His wife, aged $33,$ earned $$75,500$ with $$6,550$ withheld for income tax.

Both Bruce and his wife opened an IRA account, contributing $$6,000$ each.

Your task is to complete the $1040$ form, Schedule C$,$ and the $6251$ form based on this financial data.