autos. These autos were kept at the firm's offices. Jordan used his
personal auto for the three-mile commute to his office, a total of 1,500
miles for the entire year.
Jordan attended work-related conference in Los Angeles. He paid a
registration fee of $400 and incurred costs of $450 for transportation,
$625 for lodging, and $260 for meals. He was not reimbursed for these
expenses.
In August, Diana quit her job and began a consulting business. The
business code is 541990. She is operating the business under her own
name and rented a small office at 1234 Coral Way, Coral Gables, FL
33146. Since Diana began her business so late in the year, her
consulting income was only $8,000. She incurred the following
expenses: $475 supplies, $210 telephone, $3,200 office rent, and $325
advertising. In addition, Diana drove her two-year old Lexus on
business 750 miles to visit prospective and current clients. This car was
also driven 7,000 miles for personal use. She materially participated in
the business and did not make any payments that would require filing
Form 1099.
Jordan was born on April 1, 1975; Diana was born May 1, 1976. They
have health insurance for the entire family through Jordan's
employer. They have no foreign accounts.
Based on the information presented above, prepare a Form 1040
(married filing jointly), Schedule A, Schedule C (or C-EZ), Schedule
E, and Schedule SE using the forms available on the IRS Web site at
www.irs.gov.
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ACC 547 Week 5 Sales and Use Tax
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