Trish Himple return: Forms possibly used in this return - Schedule C, Form 4562, Form 8829.

1. Trish will claim depreciation expense on line 13 of Schedule C. She has six (6) assets to depreciate. Make sure you record the assets using the correct year in your depreciation register. Line 14 of Form 4562 is for current year bonus depreciation and line 17 is for depreciation taken in the current year for assets placed in service in prior years. Those are the only two lines affected on Form 4562.
2. Do you need to file Form 8829? If not, why not? Hint: Can Trish use the simplified method to claim a home office deduction?

Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on the cash basis. The income and expenses for the year are:

Gross sales $350,000 Returns and allowances 15,000 Expenses: Beginning inventory (at cost) $ 85,000 Add: purchases 100,000 Cost of goods available for sale 185,000 Less: ending inventory (at cost) 72,000 Cost of goods sold $113,000 Rent 29,000 Insurance 3,000 Legal and accounting fees 5,000 Payroll 60,000 Payroll taxes 5,000 Utilities 2,200 Office supplies 800 Advertising 6,000Himple Retail Fixed Asset Rollforward 12/31/2022 [book basis) DEPR COST 2020 2021 2022 ACCUM NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE CASH REGISTER 8/15/2020 SL 5 10,000.00 833.33 2,000.00 2,000.00 4,833.33 5,156.67 2020 TOTAL ADDITIONS 10,000.00 833.33 2,000.00 2,000.00 4,833.33 5,166.67 RETAIL FIXTURES 6/21/2021 SL 5,500.00 458 33 785.71 1,244.04 4,255.96 FURNITURE 6/12/2021 SL 4,100.00 341.67 585.71 927.38 3,172.62 2021 TOTAL ADDITIONS 9.600.00 800.00 1,371.42 2,171.42 7,428.58 TOTAL 19,600.00 833.33 2,800.00 3,371.42 7,004.75 12,595.25 DELIVERY TRUCK 10/1/2022 SL 38,000.00 1,900,00 1,900.00 36,100.00 DESK AND CABINETRY 6/1/2022 SL 12,000.00 1,000.00 1,000.00 11,000.00 COMPUTER 6/1/2022 SL 3,000.00 350.00 350.00 2,650.00 2022 TOTAL ADDITIONS 53,000.00 3,250.00 3,250.00 49,750.00 TOTAL 72,600.00 833.33 2,800.00 6,621.42 10,254.75 62,345.25