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Janice Morgan Tax Return Problem (Updated from...




Janice Morgan Tax Return Problem (Updated from West=s Federal Taxation 2005) Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January, 2011, Janice opened her own office located at 2751 Waldham Road, Pleasantville, CA 90029. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasantville, CA 90029. Her Social Security number is 189-57-6691. Janice desires to contribute to the Presidential Election Campaign Fund. Income from sale of articles $115,000 Rent 16,500 Utilities 7,900 Supplies 1,800 Insurance 5,000 Property taxes on car (60%) 600 Travel (including meals of $1,200) 3,500 Janice purchased and placed in service the following fixed assets for her business $ Furniture and fixtures (new) costing $19,000 on January 10, 2011 $ Computer equipment (new) costing $40,000 on July 28, 2011. $ Automobile (new) costing $37,000 on January 5, 2011. Total mileage for the year was 7,000 (60% for business use). Janice would like to deduct these costs as soon as possible. Janice=s itemized deductions are as follows: State income tax $2,000 Home mortgage interest paid to First Bank 6,000 Property taxes on home 1,100 Property taxes on car (40%) 400 Charitable contributions 1,200 Janice has interest income of $4,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $5,000 for 2011. Compute Janice Morgan=s 2011 Federal income tax payable (or refund due). You will need Form(s) 1040 and 4562 and Schedules A, B, C, and SE. My question is where do I put the depreciation for the automobile? I was trying to calculate it to line 8 on schedule c and my amount was $2880. Is this correct?,Thank you for your help!


Paper#6784 | Written in 18-Jul-2015

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