George worked as a Salesman for Toyboat, Inc.

PREPARE: 1040, Schedule A, C, and SE for Form 1040, and Forms 2106 and 8829

• George worked as a Salesman for Toyboat, Inc.

• Salary: $80,000 ($8,500 of Fed Income Taxes & $1,800 of State Income Withheld)

• Expense reimbursement of $5,000 from Employer for his employee business expenses

• Provide adequate expense records to employer and Return any excess reimbursement

• None of the reimbursement was for Meals/Entertainment

• Employer provides  George with Medical Insurance worth $7,200 per year

• Personal Vehicle 24,000 miles during the year – Placed car in service on June 1, 2010.

• Logged 18,000 miles for sales calls to customer office, and remainder was personal mileage

• Uses standard Mileage rate method and the Business Miles driven are evenly during the year

• Purchased two season tickets; $4,000 - Takes a customer to every game; discuss some business before – during, and after games.

• Client lunches, $1,500 on business meals

• Took 5-day Business trip, Ended early so he spent the remaining 2-days sightseeing:

• Details of 5-day Business Trip Expenses:          Airfare            $200

Lodging          $85 per day

Meals              $50 per day

Taxicabs         $20 per day

Marge Details:

• Self-employed; repairs rubber toy boats in basement of home

• 25%  of the house’s square footage (basement)

• Business Code: 811490

• Details of Income & Expenses:              Income from rubber toys        $15,000

Cost of Supplies                     $  5,000

Contract Labor                       $  3,500

Business Calls                                    $     500

• Couples Home Cost $150,000 – which the cost of the land was $20,000

• The FMV of the house is $225,000 and Depreciable over a 39-yr recovery period

• Details of Additional Costs:        Utility Bills                                        $2,000

Real Estate Taxes                               $2,500

Mortgage Interest                               $4,500

Cash Charitable Contributions           $3,500