Christopher Crosphit (age 42) owns and operates a health clubcalled Catawba Fitness. The business is located at 4321 New CutRoad, Spartanburg, SC 29303. The principal business code is 812190.Chris had the following income and expenses from the healthclub:
Income $216,100
Expenses: Business insurance 3,665
Office supplies 3,295
Payroll 98,900
Payroll taxes 9,112
Travel 2,420
Equipment & club maintenance 10,720
Cleaning service 8,775
Equipment rent 22,820
Telephone 2,778
Utilities (electric, water, gas) 13,975
Rent 32,590
Advertising 5,200
Special workout clothing and boxing gloves 780
Subscription to Biceps Monthly magazine 120
Educational seminar on weight training 770
Other expenses 1,830
The business uses the cash method of accounting and has noaccounts receivable or inventory held for resale. Chris has thefollowing interest income for the year: Upper Piedmont Savings Banksavings account $12,831 and Morgan Bank bond portfolio interest12,025
Chris has been a widower for 10 years with a dependent son,Arnold (Social Security number 276-23-3954), and he files his taxreturn as head of household. Arnold is an 18-year-old high schoolstudent; he does not qualify for the child tax credit. They livenext door to the health club at 4323 New Cut Road. Chris does allthe administrative work for the health club out of an office in hishome. The room is 171 square feet and the house has a total of1,800 square feet. Chris pays $20,000 per year in rent and $4,000in utilities. Chris' Social Security number is 565-12-6789. He madean estimated tax payment to the IRS of $1,000 on April 15, 2017.Required: Complete Chris' federal tax return for 2017. Use Form1040, Schedule B, Schedule C, and Form 8829 to complete this taxreturn. Do not complete Form 4562 (depreciation). Make realisticassumptions about any missing data.
Christopher Crosphit (age 42) owns and operates a health clubcalled Catawba Fitness. The business is located at 4321 New CutRoad, Spartanburg, SC 29303. The principal business code is 812190.Chris had the following income and expenses from the healthclub:
Income $216,100
Expenses: Business insurance 3,665
Office supplies 3,295
Payroll 98,900
Payroll taxes 9,112
Travel 2,420
Equipment & club maintenance 10,720
Cleaning service 8,775
Equipment rent 22,820
Telephone 2,778
Utilities (electric, water, gas) 13,975
Rent 32,590
Advertising 5,200
Special workout clothing and boxing gloves 780
Subscription to Biceps Monthly magazine 120
Educational seminar on weight training 770
Other expenses 1,830
The business uses the cash method of accounting and has noaccounts receivable or inventory held for resale. Chris has thefollowing interest income for the year: Upper Piedmont Savings Banksavings account $12,831 and Morgan Bank bond portfolio interest12,025
Chris has been a widower for 10 years with a dependent son,Arnold (Social Security number 276-23-3954), and he files his taxreturn as head of household. Arnold is an 18-year-old high schoolstudent; he does not qualify for the child tax credit. They livenext door to the health club at 4323 New Cut Road. Chris does allthe administrative work for the health club out of an office in hishome. The room is 171 square feet and the house has a total of1,800 square feet. Chris pays $20,000 per year in rent and $4,000in utilities. Chris' Social Security number is 565-12-6789. He madean estimated tax payment to the IRS of $1,000 on April 15, 2017.Required: Complete Chris' federal tax return for 2017. Use Form1040, Schedule B, Schedule C, and Form 8829 to complete this taxreturn. Do not complete Form 4562 (depreciation). Make realisticassumptions about any missing data.
