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ACC - Russell (age50) and Linda (age45)




Question;Russell (age50) and Linda (age45) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscapingbusiness called Lawns and Landscapes Unlimited. The business is operated out of their home,located at 1234 Katy Rd., TX 77493. Russell Long had the following income and expenses fromthe landscaping business:IncomeExpenses:Business InsuranceOffice SuppliesPayrollPayroll TaxesMeals and EntertainmentContract LaborMaintenanceEquipment RentTelephoneBusiness Gifts (no gift over $22)Special clothing and safety shoesSubscription to Green Lawns and magazineEducation seminar on bug controlOther Expenses$132,0003,8002,60083,0008,1002,3507,2908,30012,30023007706001203501,830The business uses the cash method of accounting and has no accounts receivable or inventoryheld for resale.In addition the above expenses, the Longs have set aside one room of their house as a homeoffice. The room is 150 square feet and their house has a total of 1,500 square feet. They pay$12,000 per year rental on their house, and the utilities amount to $3,000 for the year.The Longs also have the following interest income for the year:Interest from Morgan Bank bond portfolio$42,520The Longs have two dependents children, Bill (Social Security number 123-23-7654) andMartha (Social Security 345-67-8654). Both Bill and Martha are full-time high school students,ages 17 and 18, respectively, so they do not qualify for the child credit. Russell social Securitynumber is 664-98-5678 and Linda?s is 554-98-3946. They made an estimated tax payment tothe IRS of $4,500 on April 15, 2013.Required: Complete the Long?s federal tax return for 2013 Use Form 1040, Schedule B,Schedule C and form 8829 on pages 3-57 to 3-63 and any other appropriate schedules tocomplete this tax return. Do not complete from 4562 (depreciation). Make a realisticassumptions about missing data.AGI should be 42,384Schedule C should be a net loss of -135.


Paper#42106 | Written in 18-Jul-2015

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