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Business, 14.02.2020 02:28 juliana0122

Barbara Gonzales, age 53, is a self-employed tax attorney (social security number 444-88-9999). She is supporting her mother, Martha Garza, age 85 who lives with her. Martha’s social security number is 666-99-4444. Barbara lives in a rental at 4597 Campbell Ave. Campbell, CA 95008

Barbara’s office is located at 6578 Hamilton Ave. Ste. 456, San Jose, CA 95130. Her business name is her name- Barbara Gonzales, Attorney. She materially participates in her business. She has the following income and expenses pertaining to her business.

Barbara’s gross receipts for 2017 $189,300

Expenses:

Insurance $5800

Office Supplies $4897

Payroll $49,455

Depreciation $1489 ( on her office furniture and computer and printers- you do not have to prepare a depreciation form)

Telephone and internet $5699

Rent $ 18000

Advertising $ 1264

Software fees for tax preparation $8,451

Education needed to keep up on latest tax laws $2575

The business uses the cash basis of accounting.

Other income includes Interest from Wells Fargo, $249.

You do not have to calculate self-employment taxes as this will be covered in another chapter. Barbara sent estimated tax payments to the IRS for the 2017 taxes totaling $15000.

Prepare Barbara’s Form 1040 tax return for 2017. You should also prepare a Schedule C.

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Barbara Gonzales, age 53, is a self-employed tax attorney (social security number 444-88-9999). She...

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