Preparing Form 1040 for Charles 2019
During 2019, Charles Snow, who is single, and a part-time Amazon Shipping Manager and received a W-2. He also had a cash-basis Plumbing business and Doing Business As(D/B/A) Snow Plumbing, LLC with Employer Tax ID 26-2087958 that had the following income and expenses:
Revenue $ 62,500 Computer Equipment purchased 1/20/2019 (§ 179 elected) 7,300 Plumbing Equipment purchased 5/10/2018 (No § 179 elected) 9,500 Bank Service Charges 125 Wages paid to his assistant 8,000 Office Supplies 1,000 Telephone 2,500 Advertising (Print) 2,600 Plumbing Supplies 15,000
Charles (SSN 225-22-7051) resides at 2084 North Broadway, White Plains, NY. Professional code 238220.
Her W-2 shows the following:
Wages $ 40,500 Federal withholding 5,500 Social security wages 40,500 Social security withholding 2,511 Medicare withholding 587 State withholding 3,255 Other income: 1099-INT TD Bank 1,950 1099-DIV Tyson., Inc.—Ordinary dividends 2,250 Qualified dividends 2,250
Charles had the following itemized deductions:
State income tax withholding $ 3,255 State income tax paid with the 2018 return 550 Real estate tax 9,450 Mortgage interest 15,300
Medical costs 4,500
In addition, Charles had the following transactions during 2019: He sold 3,000 shares of Costco shares for $10,500 on
August 15, 2019. The shares were purchased July 5, 2016. Charles is also a big baseball fun and had sold Joe DiMaggio’s
signed baseball for $15,000 on September 20, 2019 for which he purchased for $10,500 on July 25, 2017.
Charles made Three federal estimated payments of $4,500 each on April 15, July 15 and September 15. He had qualifying
health care coverage at all times during the tax year.
Prepare Form 1040 for Charles 2019, including Schedule A, Schedule B, Schedule C, Schedule D, form 8949, Schedule SE,
form 8995 (QBI), Form 4562 and 28% Rate Gain Worksheet as well as Schedule D Tax Worksheet. Use the appropriate
Tax Tables or Tax Rate Schedule.
Note: Make sure to include all the necessary schedules such schedule 1, 2 and so on.