Suzy Sunshine, age 31, is single and has one child that lives with her, Johnny, age 17. She opened a financial consulting business in January of 2014. She rented office space initially, but then purchased an office building for the business at 1234 Nottinghill, Maple Grove, MI 48430. The business is called Bright Future Financial Consulting. Suzy is a cash basis taxpayer. She lives at 456 Wood St., Maple Grove, MI 48430. Her social security number is 123-45-6789. Johnny’s social security number is 987-65-4321. Suzy wants to contribute to the Presidential Election Campaign Fund.
During 2014, Suzy had the following income and expenses connected with her business:
Income from consulting services $84,000
Property taxes paid 8,000
Rent paid 12,000
Utilities 7,500
Supplies 1,700
Insurance 4,000
Travel (including meals of $700) 2,200
Advertising 2,400
Suzy purchased and placed in service the following fixed assets for her business:
• Furniture & fixtures (new) costing $15,000 on January 15, 2014
• Computer equipment (new) costing $4,500 on January 10, 2014
• Furniture & fixtures (used) costing $2,400 on November 1, 2014
• Office building costing $180,000 on December 5, 2014
Suzy has decided not to elect the immediate expensing under § 179 but will take the additional first-year bonus depreciation where available.
In addition to self-employed health insurance premiums of $6,200, Suzy had the following expenditures in 2014:
State income tax paid $3,000
Home mortgage interest paid to First Bank 6,000
Property taxes on home 1,500
Charitable contributions 1,200
Medical expenses for Johnny’s emergency surgery $12,000
Medical expenses for Suzy $2,700
Suzy did not keep a record of the sales tax she paid. The amount from the sales tax table is $450. Suzy has interest income of $12,000 from certificates of deposit at First Bank and $4,000 from State of Michigan bonds. Suzy made federal estimated payments of $5,000 for 2014.
Complete Suzy’s 2014 Federal income tax return and necessary schedules using the fillable forms in the Resources Module of Canvas. You will need Forms 1040 and 4562 and Schedules A, B, C & SE. In addition to the forms, please include a document showing your depreciation calculation.
Note:
Based on information provided on the attached document prepare the following for Suzy Sunshine for 2014:
Form 1040
Schedule A
Schedule B
Schedule C
Form 4562
Schedule SE