Question

George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at
2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2018 income
tax return based on the information below:

George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000
($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld)
plus an expense reimbursement from Toyboat of $5,000 to cover his employee business
expenses. George must make an adequate accounting to his employer and return any
excess reimbursement, none of the reimbursement was related to the meals and entertainment.
Additionally, Toyboat provides George with medical insurance worth $7,200
per year. George drove his car a total of 24,000 miles during the year, and he placed the
car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to
customers at the customers’ offices and the remainder was personal mileage. George uses
the standard mileage rate method. George is a college basketball fan. He purchased two
season tickets for a total of $4,000. He takes a customer to every game, and they discuss
some business before, during, and after the games. George also takes clients to business
lunches. His log indicates that he spent $1,500 on these business meals. George also took
a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that
he finished his business in three days, so he spent the other two days sightseeing. He had
the following expenses during each of the five days of his trip:
Airfare $200
Lodging $85/day
Meals $50/day
Taxicabs $20/day

Marge Large is self-employed. She repairs rubber toy boats in the basement of their home.
The total square footage of the Larges’ home, including the basement, is 3,000 square
feet. The portion of the basement used in Marge’s business is 750 square feet. The business
code is 811490. She had the following income and expenses:
Income from rubber toy boat repairs $15,000
Cost of supplies 5,000
Contract labor 3,500
Telephone (business) 500
The Larges use the simplified method to figure their deduction for Marge’s business use
of their home. (Do not need form 8829)
The Larges incurred the following total other expenses:
Real estate taxes 2,500
Mortgage interest 4,500
Cash charitable contributions 3,500
Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2018
year. (Assume no depreciation for this problem and that no estimated taxes were paid by
the Larges.)

Can someone please upload the actual IRS 2018 tax forms completed, not an Excel list. Thank you!

Answer 1

Solution Schedule A Medical & Dental Expenses Taxes paid Real estate tax 2500 Inteneat paid Mortgage interest Gifts to Charity Unreimbursed Job Expenser Total Itemised deductions 4 500 3500 10905 21405 Form 1040 2769 82789 (21405) 3200X2 Taxable income 10% 151 257 3900 67 21 1149 do Salary received 80000 Business inome Total income Less & Schedule A Total 61364 7600 53784 0-3500 850 * 500 - 34500 34500-61384 Total tax Less: Taxes witheld 10300 Total tax payable 19 Schedule C Income from Rubber toy book- Repair ISODO he: cast of supplies 5000 3500 Labons Contract Business Phone calls Tosal 6000 Lesso fom 8829 Expenses total business Income SOO 3441 2789

9990 foron 2006 a Expenses Travelling expenses Meals 665 5500 16155 (5000) (250) Keis: Reimbursements Expense allowed 10905 Form 1629 2 Solo щed b, butbols Corcome from Butines 6000 Lou: morlagage Forleset (1125) Real Estate taxes (625) Utility bill (500) NOTE: Depreciation alullion Adjusted cost 170000 Lesse value of land 20000 150000 Basis of building 37500 2.56% Depreciation - 96/05) Depreciation 2789 Total Income som business