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Russell (age50) and Linda (age45) Long have brought you the following information

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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 landscaping business 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 from the landscaping business;Income $132,000;Expenses;Business Insurance;3,800;Office Supplies 2,600;Payroll 83,000;Payroll Taxes 8,100;Meals and Entertainment 2,350;Contract Labor 7,290;Maintenance 8,300;Equipment Rent 12,300;Telephone 2300;Business Gifts (no gift over $22) 770;Special clothing and safety shoes 600;Subscription to Green Lawns and magazine 120;Education seminar on bug control 350;Other Expenses 1,830;The business;uses the cash method of accounting and has no accounts receivable or inventory;held for resale.;In addition the;above expenses, the Longs have set aside one room of their house as a home;office. 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 $42,520;The Longs have;two dependents children, Bill (Social Security number 123-23-7654) and Martha;(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 Security number is 664-98-5678 and Linda?s is;554-98-3946. They made an estimated tax payment to the 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 to complete this tax return. Do not complete from 4562 (depreciation). Make a realistic assumptions about missing data.;AGI should be 42,384;Schedule C should be a net loss of -135.

 

Paper#49761 | Written in 18-Jul-2015

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