The forms dont have to be all filled out but would really appreciate it since it will help me see exactly how the process works! Thank you, in advance.

ProConnect Tax Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the year, and he does not want $3 to go to the Presidential Election Campaign Fund. Devon received the appropriate coronavirus recovery rebates (economic impact payments), related questions in ProConnect Tax should be ignored. Devon's wife, Ariane, passed away in 2016. Devon's son, Tom, who is age 18, resides with Devon. Torn'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 operates as Devon's Copy Shop, 422 E. Main Street, Albuquerque, NM 87131, IRS business activity code: 453990. His revenues and expenses for 2020 are as follows Sales revenue Cost of goods sold (based on purchases for the year) 5740,000 405,000 sales 140,000 -COGS 405,000 88.000 CP 1395.000 Salary expense Rent expense Unities 30,000 8 000 Telephone 6,500 Advertising 4,000 Bad debts 5,000 Depreciation 21.000 Health insurance 26.000 7.000 Accounting and legal fees Supplies Business Incang $1461500 1,000 Other income received by Devon includes the following Dividend income qualified dividends) total 114000 Swan, Inc Wren, Inc Interest income First National Bank Second City Bank County of Santa Fe, NM bonds $10,000 2,000 11,000 2.500 17,000 During the year. Devon and his sole proprietorship were involved in the following property transactions. Stock transactions were reported to Devon on Form 1099-B; basis was not reported to the IRS a Sold Blue, Inc. stock for $45,000 on March 12, 2020. He had purchased the stock on September 5, 2017, for $50,000. b. Received an inheritance of $300.000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2020, and invested $100,000 in Gold, Inc. stock on May 30, 2020 c. Received Orange, Inc. stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2020. Her adjusted basis for the stock was $5,000. No Federal gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2014. Devon sold the stock on July 1, 2020, for $22,000. d. On July 15, 2020, Devon sold one-half of the Green, Inc. stock for $40,000 e. Devon was notified on August 1, 2020, that Yellow, Inc. stock he purchased from a colleague on September 1, 2019, for $52,500 had become worthless. Although he understood that investing in Yellow was risky, Devon did not anticipate that the corporation would declare bankruptcy. 1. On August 15, 2020. Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devon's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2017 g. On December 1, 2020, Devon sold the condominium 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. Devon purchased the condominium for $180,000 Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. $ 9,500 Medical expenses (before the 75%-of-AGI foot) Property taxes on residence 5,800 State income taxes 4,000 Chattable contributions 10,000 Mortgage interest on sidence (First National Bank) Sales taxes paid 9.900 5,000 During the year, Devon makes estimated Federal income tax payments of $35,000. Compute Devon's Federal income tax payable or refund due for 2020 (assuming that he makes any available elections that will reduce the tax), and complete his tax return using appropriate forms and schedules. Suggested software: ProConnect Tax. 1040 Department of the Treatment Service ) U.S. Individual Income Tax Return 2020 OMO No 1545-0074 RS Use Only Do not writerie Filing Status Single Married fling jointly Married fng separately (MFS) Head of household CHH Qualifying widow(er) (w If you checked the MFS box, enter the name of your spouse. If you checked the HOH Or O box, enter the child's name it the qualitying person is a child but not your dependent Your first name and middle initial Your social security number Devon Bishop DA font retum, spouse's first name and middle initial Last name Spouse's social security number rock only box Last name Albuquerque Home address number and street. If you have a PO box, se instructions Apt, no 1507 Rose Lane Presidential Election Campaign Check here if you, or your City, town, or post office. If you have a foreign address also complete spaces below State ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a NM 7 B box below will not change Foreign country rare Foreign province/state/county Foreign postal code your tax or refund. You Spouse At any time during 2020, did you receive, sell, send exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual status alien Age/Blindness You Were bom before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 is blind Dependents (see instructions): (2) Social security (3) Relationship (4) Vt qualities for see instructions it more (1) First name Last name number to you Child tax credit Credit for other dependents than four Tom Bishop 12345678 dependents son see instructions and check here 1 Wages, salarios, tips, etc. Attach Forms) W-2 1 Attach 2a Tax-exempt interest 2a 2b Sch. Bir b Taxable interest 3a Qualified dividends 3a 3b uired b Ordinary dividends 4a IRA distributions 4a b Taxable amount 4b 5a Pensions and annuities 50 b Taxable amount 5b Standard Social security benefits b Taxable amount 6b Deduction for 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 7 Single or Married liling B Other income from Schedule 1, line 9 8 separately. $12.400 9 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income 9 Mamed fing 10 Adjustments to income jointly or a Qualifying From Schedule 1. line 22 10a widower b $24.500 10b Charitable contributions if you take the standard deduction. See instructions - Head of Add lines 10a and 10b. These are your total adjustments to income 100 household 11 Subtract line 10c from line 9. This is your adjusted gross income 11 $18.650 If you checked 12 Standard deduction or itemized deductions (from Schedule A) 12 any box under 13 Standard 13 Qualified business income deduction Attach Form 1995 or Form 8995 A Deduction 14 Add lines 12 and 13 14 see instructions 15 Taxable income. Subtract line 14 from line 11 If zero or less enter 0. 15 Cat. No 113200 Form 1040 000 For Disclosure. Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 2020 Page 2 Eram corbatay 16 Tax see instructions Check dany from Forms 5854 17 Amount from Schedule 2 line 3 2 4972 3 16 18 Add lines 16 and 17 17 19 Child tax credit or credit for other dependents 18 20 Amount from Schedule 3. line 7 19 21 20 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less enter-0 22 23 Other taxes, including self-employment tax, from Schedule 2. line 10 23 24 Add lines 22 and 23. This is your total tax 24 25 Federal income tax withheld from a Form(s) W-2 25 Forms) 1099 25b Other forms (see instructions 250 d Add lines 25a through 250 250 If you have a 26 2020 estimated tax payments and amount applied from 2019 retum 26 Cang Chi 27 Earned income credit (EC) sich sch EIC 27 . If you 28 Additional child tax credit Attach Schedule 8812 28 nortable 29 American opportunity credit from Form 8863, line 8 29 se instructions 30 Recovery rebate credit. See instructions 30 31 Amount from Schedule 3, line 13 31 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 34 350 Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 35a Drect deposit? b Routing number cType Checking Savings See instructions d Account number 36 Amount of line 34 you want applied to your 2021 estimated tax 36 Amount 37 Subtract line 33 from line 24. This is the amount you owe now You Owe For details on Note: Schedule H and Schedule SE files, line 37 may not represent all of the taxes you owe for how to pay, see 2020. See Schedule 3, line 12e, and its instructions for details instructions 38 Estimated tax penalty see instructions) 38 Third Party Do you want to allow another person to discuss this return with the IRS? Soe Designee instructions Yes. Complete below. No Designee's Phone Personal identification no umber Sign Under penalties of perjuy, I declare the examined to return and accompanying schedules and statement and to the best of my knowledge and Here belief, they are true correct, and completo. Declaration of prepare other than to pay is based on all information of which preparer has any knowledge Your signature Date Your occupation the RS sont you an identity Protection Porter the tent Joint return? See instructions Date of the IRS on your spouse Spouse's signature of a joint rebum, both must sign Spouse's occupation identity Protection Port Keep a copy for rest your records Email address Phone no Date PTIN Check Preparers name Preparer's signature Paid Semployed Phone no Preparer Firm's Firm's EN Use Only Firm's address For 1040 Go to www.is gowl Form 100 for instructions and the latest information SCHEDULE 1 OMBO 1545.00 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Attach to Form 104, 1040-SR, or 1040-NR Attachment al Revenue Service Go to www.insgow Form100 for instructions and the latest information mes) shown on Form 1040, 040-SR, or 1040-NR Your social security number Sounce 01 1 2a 3 PartAdditional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 4 Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation 8 Other income. List type and amount 4 5 6 7 CO 9 9 10 11 12 13 14 15 16 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income 10 Educator expenses. 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP. SIMPLE, and qualified plans 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees deduction. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR. line 10a For Paperwork Reduction Act Notice, see your tax return instructions Cat No 7479 17 18a 19 20 21 22 Schedule 1 Form 1040) 2020 SCHEDULE 2 OM NO 1545-0074 (Form 1040) Additional Taxes Department of the Treaty Attach to Form 1040, 1040-SR, or 1040-NA Wemal Revenue Service Go to www.irs.govi Form1040 for instructions and the latest information Name(s) shown on Form 1040 1040-SR, OF 1040-NR Your social security numbe 2020 Attachment Sequence No 02 1 1 2 3 4 5 Part 1 Tax Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Form 8962 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 5 Unreported social security and Medicare tax from Form: a 4137 b8919 6 Additional tax on IRAs, other qualified retirement plans, and other fax-favored accounts, Attach Form 5329 if required 7a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 8 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 9 9 Section 965 net tax liability installment from Form 965-A 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 714750 6 7a 7b 8 10 Schedule 2 (Form 1040) 20. SCHEDULE A Form 1040) Itemized Deductions Go to www.in.gelSchedule for instructions and the latest information Attach to Form 1040 1045-SR 220 Caution you wemganet Guaified in Form 400410 ions for the 10 07 104 105 Your soclub Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses rembursed or pad by others 1 Medical and dental expenses instruction) 2 Enter amount from Form 1040 or 1040-SA, Ine 11 21 3 Multiply line 2 by 75% 10075) 4 Subtract line 3 from line 1. line is more than in 1 enter-O- 5 State and locales a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both you elect to include general sales taxes instead of income taxes check this box b State and local real estate taxes is instructions c State and local personal property taxes d Add lines 5a though 5c e Enter the smaller of line 5d or $10.000 (55.000 med Sling separately) 6 Other taxes List type and amount 5b 50 50 50 6 Interest You Paid Caubon You more interest donna be con 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans to buy, build or improve your home. See instructions and check this box 3 a Home mortgage interest and points reported to you on Form 1098 See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. I paid to the person from whom you bought the home, see instructions and show that person's name, identifying no and address 25 Bb c Points not reported to you on Form 1098. See instructions for special rules Bc d Mortgage insurance premiums (see instructions 8d e Add lines 8a through Be 9 Investment interest Attach Form 4952 if required. See instructions 9 10 Add lines Be and 9 10 Gifts to 11 Gifts by cash or check Il you made any gift of $250 or more, son Charity instructions 11 Caution if you 12 Other than by cash or check. If you made any gift of $250 or more idea and a boot see instructions. You must attach Form 283 it over $500 12 sorchons 13 Carryaver from prior year 13 14 Add lines 11 through 13 14 Casualty and 15 Casualty and the losses from a federally declared disaster (other than not qualified Theft Losses disaster losses. Attach Form 4894 and enter the amount from line 13 of that form. See instructions 15 Other 16 Other from Ast in instructions List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 10. Also, enter this amount on 17 Form 1040 or 1040-SR, line 12 omized ductions 18 If you elect to ternice deductions even though they are less than your standard deduction check this box CM 171450 Schedule A Form 104002090 For Paperwork Reduction Act Notice, see the instructions for Forms 1040 and 1040-SR SCHEDULEB Form 10407 Interest and Ordinary Dividends Gotowww..ched for instructions and the latest information Anach Form 1000 SR OMOGO 220 Part 1 08 List name of payer any terest is from a ser-financed mortgage and the buyer used the property as a personal residence see the structions and interest first to show that buyer's social security number and address Amount Interest Sections and the cons for Fome 100 1040 SR20 Note you received a form ON Fom 1000-00 as the payer anden the total shown on 4 4 4 2 Add the amounts on line 1 2 3 Excludable interest on sees EE and US savings bonds issued aer 1989 Attach Form 3815 3 Subtract line from line 2. Enter the result here and on Fm 1040 1040-S line Note: If line 4 is over $1.500. you must complete Part Part II Amount 5 Ordinary Dividends See instruction and the motructions for Forms 1040 and 1040 SR line 3 5 Note: you receved a form 1090-DIV wuste statement from aragem list the firm's name as the bayarandorte in ordinary dividends shown 6 Add the amounts on line 5. Enter the total here and on Form 1040 Or 1040-SR on that line 3b Note: If line is over $1500. you must complete Part II Part III You must complete this part if you had over $1.500 of taxable interest or ordinary dividendada foreign account or received a distribution from or were a part of or a transfer to aforetrunt Yes No Foreign Ta At any time during 2020, did you have a financial interest in or signature authority over a financial Accounts account such as a bank account, securities account or brokerage account located in a foreign and Trusts country? See instructions Caution: If "Yes." are you required to Ne FinCEN Form 114. Report of Foreign Bank and Financial required for Accounts (FBAR, to report that financial interest or signature authority? See FinCEN Form 114 to e FinCEN and its instructions for filing requirements and exceptions to those requirements Form 114 may If you are required to file FinCEN Form 114 enter the name of the foreign country where the routin substanbul financial account is located penes See 8 During 2020. did you receive a distribution from or were you the grantor of or transfororto, a instructions foreign trust? "Yes, you may have to foie Form 3520. See instructions For Paperwork Reduction Act Notice, see your tax return instructions Cat Schedule Form 10402020 SCHEDULEC Profit or Loss From Business OM 1545-001 (Form 1040) Sole Proprietorship 2020 Department of the Go to www.insgow Schedule for instructions and the latest information A de Senec Attach to Form 1040 1040-SR. 1040-NR or 1011; partnerships generally must fileForm 1065 S09 The of proto Social Security Yes M A Principal business or profession including product or services instruction Broderi Business name if no separate business name, leave blank Die 10 mer E Business address including suite or room na) City, town or postolice state, and 21P code F Accounting method (1) Cash 27 A G 12 other specity Did you materially participate in the operation of this business during 2007 "No."sinstructions for non fosse Ne If you started or acred this business during 2020, check here 1 Did you make any payments in 2020 that would require you to file Forms) 1090? See vatructions Yes No Yes I did you or will you file required Form 10997 Yes No Partl Income 1 Gross receipts of sales See instructions for ine 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee" box on tratform was checked 1 2 Returns and lowances 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold (from in 42) 4 5 Gross profit. Subtract line 4 from line 3 5 6 Other income, including federal and state gasoline or fuel tax creditor refund iseenstruction 6 Gross income. Add lines and o 7 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expense (instructions 18 O Car and truck expenses 19 Pension and profits ang plan 19 Instruction 9 20 Rent or lease see instructions 0 Commissions and fees 10 a Vehicles, machinery, and equipment 200 11 Contract laboren instruction 11 Other business property 206 12 Depletion 12 21 Repair and maintenance 21 13 Depreciation and section 179 22 Supplies not included in Parten expense deduction inot 23 23 included in Part see Taxes and licenses structions 13 24 Travel and meals 24 14 a Travel Employee benefit programs other than online 19 14 b Deductible meals 15 Insurance father than health 15 24b instructions 16 Interest see instructions 25 Utilities 25 25 16a o 26 Mortgage load to banks, Wagos les employment Credits 16 b Other 27a 278 Other expenses from line 48 17 17 Land profesional services b Reserved for future use 27 28 Total expenses before expenses for business use of home Add lines through 27a 29 29 Tentative profit or loss) Subtract line 28 from line 7 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 3820 unless using the simplified method. See instructions Simplified method filers only: Enter the total square footage of your home. Use the Simplified and to the part of your home used for business 30 Method Worksheet in the instructions to figure the amount to enter on line 30 31 Net profit or loss). Subtract line 30 from ine 29 . If a profit, enter on both schedule 1 Form 1010), line 3, and on schedule SE, line 2. ot you 31 checked the box on line 1see Instruction Estates and trustsenter on Form 1041, line 2 falous, you must go to line 32 If you have a loss, check the bow that describe your investment in this activity See instructions If you checked 38 enter the loss on both Schedule 1 Form 1040), line 3. and on Schedule 32a All investment satisk SE, line 2. you checked the box on line 1, the fire 31 instruction Estates and trusts, enteron 326 Some investment is not Form 1041, line 3 checked. you must attach Form 6158. Your loss may be led Gal No 1130 Schedule Form104092020 For Paperwork Reduction Act Notice, see the separate instructions, &&8 SCF104620 Part 10 Cost of Goods Sold See Instructions Page 2 33 Method used to valuedung entory a Cost Lowocou o mare - Other attach explanation Was there any change in determining costs, or on being and closing investory! "Yeach explanation 34 B Yes No 35 Inventory at beginning of years afternt from last year's closing ty cheation 35 36 Purchasesse cost of items with for personal 36 37 Cost obor. Do not include any amounts paid to your 37 30 Materials and supplies 30 39 Other costs 39 40 Add liness through 10 41 Inventory at end of year 41 42 Cost of goods sold Subtract line 41 from the here and online! 42 Part IV Information on Your Vehicle. Complete this part only it you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business See the instructions for line 13 to find out if you must file Form 4562 When did you place your vehicle in service for purposes of the total number of miles you drove your vehicle during 2000 euro me you use your vehicle for o Business Comming section c Other 45 Was your vehicle available for personal use during of duty hours? Yes NO 46 Do you for your spouse have another vehicle able for personal use? Yes No 47 Do you have evidence to support your deduction? Yes No bi "Yes" is the evidence written? Part V Other Expenses. List below Business expenses not included on lines 3-26 or line 302 Yes Na Total other expenses. Enter here and online 27a 48 Schedule Form 10102020 SCHEDULED Form 1040 1545-00 Capital Gains and Losses 220 Anach to Form 1010, 1010-5, or 1040-NR Go to www.is.gow/Schedule for instructions and the latest information Use Form 19 to list your transactions for lines th, 2, 3, Bb, and 10 AL Sec 12 Your security Did you dispose of any investments in a qualified opportunity fund during the tax year? Yes No If "Yes,"attach Form 1949 and see its instructions for additional requirements for reporting your gain or loss Part 1 Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instnactions) See instructions for how to figure the amounts to enter on the Ganor nes below Asments Sun This form may be easier to complete if you round off cents to Proch Cost mond whole dos Isa for the ta Pa come 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments instructions) However, if you choose to report these transactions on Form 8949. leave this line black and go to line 1 1b Total for all transactions reported on Form) 1949 with Box A checked 2 Totals for all transactions reported on Forms 1949 with Box B checked 3 Totals for a transactions reported on Formis) 6949 with Box C checked 4 Short-term gain from Form 6252 and short-term gain or loss from Forms 4684,6781 and 8624 5 Not short-term gain or loss from partnerships s corporations, estates and trusts from Schedules) K-1 5 Short-term capital loss carryover. Enter the amount, if any, from line of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or loss). Combine lines ta through in column you have any long- term capital gains or losses, go to Part It below. Otherwise, go to Part on the back 7 Part II Long-Term Capital Gains and Losses - Generally Assets Held More Than One Year ise instructions) See instructions for how to figure the amounts to enter on the an or los lines below Sco This form may be easier to complete if you round of cents to Proceeds og som mund whole dollars poe for other FP mother 8a Totals for all long-term transactions reported on Form 1099-B for which basis reported to the IRS and for which you have no adjustments see instructions) However, if you choose to report all these transactions on Form 949. leave this line blank and go to line 50 Bb Totals for all transactions reported on Formis) 8949 with Box D checked 9 Totals for all transactions reported on Form(s) 8949 with Box E checked 10 Totals for all transactions reported on Forms) 8949 with Box F checked 11 Gain from Form 4797. Part : long-term gain from Forms 2439 and 6252, and long-term gain or loss 11 from Forms 4684.6781, and 8824 12 12 Net long-term gain or loss) from partnerships, Scorporations, estates, and trusts from Schedules)-1 13 13 Capital gain distributions See the instructions