Jonathan Silva is a single, self-employed landscape designer who resides at 1234 23rd Ave, San Francisco, CA 94111. His Social Security number is 123-45-6789. His date of birth is 12/18/1962. He rents his home. During 2019 he had the following income and expenses:
Gross receipts: $31, 310 Purchases of statues, lawn fixtures for clients: $8,961
Garden supplies: $317 Office supplies $265 Truck expenses: $5,596
Jonathan uses part of his home for business. He has a room exclusively used to design gardens for his clients. His share of the home is 1,250 square feet, and the office is in a room twelve feet by twelve feet. His home utility costs for 2019 were $900, and he paid rent of $9,240.
Jonathan paid $4,879 for health insurance in 2019.
During 2019 he made $2,550 estimated payments to the IRS and none to California. His California income tax refund of $148 from 2018 was carried forward to tax year 2019. Any California refund for 2019 is to carried forward to his 2019 tax return.
Prepare is 2019 California return and submit the first page of the 540
Federal forms needed for this assignment: 1040, Schedule 1, Schedule C, Schedule SE, Form 8829. (note: Schedules 2 and 3 only apply to the federal return and are not necessary for this assignment)
California forms needed: Form 540
The homepage contains the links to the Internal Revenue Service (IRS) and the Franchise Tax Board (FTB) for downloading forms
Given: California earned income credit for line 75 of the 540 is 125.
1 What was Jonathan’s adjusted gross income?
2 What was Jonathan’s expenses for business use of the home?
