EVALUATING the Self-Employed Borrower
CASE STUDY – BORROWER
tax years 2014 and 2013
ABOUT JOHN AND GINNY BORROWER:
Filed joint tax returns
Married with no dependents
f f Own three rental properties
ff
ff
JOHN IS A:
Sole proprietor of Up & Running
computer service
f f 20% Partner in Tanglewood Realty
f f 50% owner and nonactive participant in
management of Creative Network Design
Services, an S-Corp
f f 50% Partner in Westchester
Development, LLC
ff
GINNY IS AN:
Owner and manager of Interior
Innovations Incorporated, a regular
corporation
f f Part-time sales representative for
Creative Greeting Cards
f f 50% Partner in Westchester
Development, LLC
ff
Form
W-2
Wage and Tax Statement
2014
G Keep for your records
Name
Social Security Number
Ginny Borrower
000-00-0001
X Spouseʼs W-2
Military: Complete Part VI on Page 2 below
Do not transfer this W-2 to next year
a Employeeʼs social security No 000-00-0001
b Employerʼs ID number
00-0000000
c Employerʼs name, address, and ZIP code
Interior Innovations, Incorporated
Street
1000 Heaven's
Form
CityW-2Jackson
State
TN
ZIP Code
Foreign Country
Name
Ginny
d ControlBorrower
number
Way
1 Wages, tips, other
2 Federal income
compensation
50,000.00
10,000.00
3 Social security wages
4 Social security tax withheld
5 Medicare wages and tips
6 Medicare tax withheld
54,000.00
Wage and Tax Statement
54,000.00
04900
tax withheld
G Keep for
records
7 your
Social
security tips
9
3,348.00
8 Allocated tips
2014
783.00
Security care
Number
10Social
Dependent
benefits
000-00-0001
11 Nonqualified plans
Distributions from sect. 457
Military: Complete Part VI on
2 below
andPage
nonqualified
plans
X Spouseʼs
W-2
Transfer employee
information from
the
Federal
Information
(Important, see Help)
Do not
transfer
this W-2 Worksheet
to next year
Employeeʼs name
12 Enter box 12 below
Employeeʼs
social security No 000-00-0001
1 Wages, tips, other
2 Federal income
First
M.I.
Ginny
Employerʼs
ID number
00-0000000
tax withheld
Last
Suff.
13 compensation
Statutory employee
Borrower
Employeeʼs name,
address
and ZIPand
code
Retirement
plan
Employerʼs
address,
ZIP code
15,000.00
2,250.00
Creative
Greetings
Cards
3 SocialThird-party
security wages
4 Social security tax withheld
Street 3412 W
Silverwood
Dr
sick pay
16,000.00
992.00
City Jackson
Street TN1101 Commerce
Dr
5 Medicare
andafter
tips entering
6 boxes
Medicare
taxand
withheld
14
Enter box wages
14 below
18, 19,
20.
State
ZIP Code 04953
16,000.00
233.00
City
Jackson
Foreign
Country
NOTE: Enter
box 15 before entering box 14.
TN
04953
State
ZIP Code
7 Social security tips
8 Allocated tips
Foreign
Box
12Country
Box 12
If Box 12 code is:
9
Code
Amount
A: Enter amount
attributable to RRTA Tier 210
tax Dependent care benefits
d DControl number
4,000.00 M: Enter amount attributable to RRTA Tier 2 tax
P: Double
to link to Form
11 click
Nonqualified
plans3903, line 4
Distributions from sect. 457
R: Enter MSA contribution for Taxpayer
Transfer employee information from
and nonqualified plans
the Federal Information Worksheet
(Important, see Help)
Spouse
e Employeeʼs name
box 12 below
W: Enter12
HSAEnter
contribution
for Taxpayer
First Ginny
M.I.
Spouse
Employer Statutory
is not a state
or local government
Last Borrower
Suff.G:
13
employee
f Employeeʼs address and ZIP code
Retirement plan
3412
Street
Third-party
sick pay
Box
15 W Silverwood Dr
Box 16
Box 17
Jackson
City State
Employerʼs state I.D. no.
State wages, tips, etc.
State income tax
14 Enter box 14 below after entering boxes 18, 19, and 20.
State TN
ZIP Code 04953
Foreign Country
NOTE: Enter box 15 before entering box 14.
e
a
b
cf
Box 12
Code
D
Box 12
Amount
Box 20 1,000.00
Locality name
Box
Box
14 15
If Box 12 code is:
A: Enter amount attributable to RRTA Tier 2 tax
Box 18attributable to RRTABox
M: Enter amount
Tier 219tax
P:Local
Double
click
to etc.
link to FormLocal
3903,income
line 4 tax
wages,
tips,
R: Enter MSA contribution for Taxpayer
Spouse
W: Enter HSA contribution for Taxpayer
Spouse
G:
Employer is not a state or local government
Description or Code Employerʼs state I.D. no.
State
on Actual Form W-2
Amount
Box 20
Locality name
Associated
State
16
17
TurboTaxBox
Identification
of Description Box
or Code
(Identify
this
item by
selecting
the identification
from
State
wages,
tips,
etc.
State income
tax
the drop down list. If not on the list, select Other).
Box 18
Local wages, tips, etc.
-1-
Box 19
Local income tax
Associated
State
Form
W-2
Wage and Tax Statement
2014
G Keep for your records
Name
Social Security Number
Ginny Borrower
000-00-0001
X Spouseʼs W-2
Military: Complete Part VI on Page 2 below
Do not transfer this W-2 to next year
a Employeeʼs social security No 000-00-0001
b Employerʼs ID number
00-0000000
c Employerʼs name, address, and ZIP code
Creative Greetings Cards
1101 Commerce
Street
Form
CityW-2Jackson
TN
State
ZIP Code
Foreign Country
Name
Ginny
d ControlBorrower
number
Dr
1 Wages, tips, other
2 Federal income
compensation
15,000.00
2,250.00
3 Social security wages
4 Social security tax withheld
5 Medicare wages and tips
6 Medicare tax withheld
16,000.00
Wage and Tax Statement
16,000.00
04953
tax withheld
G Keep for
records
7 your
Social
security tips
9
992.00
8 Allocated tips
2014
233.00
Security care
Number
10Social
Dependent
benefits
000-00-0001
11 Nonqualified plans
Distributions from sect. 457
Military: Complete Part VI on
2 below
andPage
nonqualified
plans
X Spouseʼs
W-2
Transfer employee
information from
the
Federal
Information
(Important, see Help)
Do not
transfer
this W-2 Worksheet
to next year
Employeeʼs name
12 Enter box 12 below
Employeeʼs
social security No 000-00-0001
1 Wages, tips, other
2 Federal income
Ginny
First
M.I.
Employerʼs
ID number
00-0000000
tax withheld
Borrower
Last
Suff.
13 compensation
Statutory employee
Employeeʼs name,
address
and ZIPand
code
Retirement
plan
Employerʼs
address,
ZIP code
15,000.00
2,250.00
Creative
Greetings
Cards
3 SocialThird-party
security wages
4 Social security tax withheld
Silverwood
Dr
Street 3412 W
sick pay
16,000.00
992.00
City Jackson
Street TN1101 Commerce
Dr
5 Medicare
andafter
tips entering
6 boxes
Medicare
taxand
withheld
14
Enter box wages
14 below
18, 19,
20.
State
ZIP Code 04953
16,000.00
233.00
City
Jackson
Foreign
Country
NOTE: Enter
box 15 before entering box 14.
TN
04953
State
ZIP Code
7 Social security tips
8 Allocated tips
Foreign
Box
12Country
Box 12
If Box 12 code is:
9
Code
Amount
A: Enter amount
attributable to RRTA Tier 210
tax Dependent care benefits
d DControl number
1,000.00 M: Enter amount attributable to RRTA Tier 2 tax
P: Double
to link to Form
11 click
Nonqualified
plans3903, line 4
Distributions from sect. 457
R: Enter MSA contribution for Taxpayer
Transfer employee information from
and nonqualified plans
the Federal Information Worksheet
(Important, see Help)
Spouse
e Employeeʼs name
box 12 below
W: Enter12
HSAEnter
contribution
for Taxpayer
First Ginny
M.I.
Spouse
Employer Statutory
is not a state
or local government
Last Borrower
Suff.G:
13
employee
f Employeeʼs address and ZIP code
Retirement plan
3412
Street
Third-party
sick pay
Box
15 W Silverwood Dr
Box 16
Box 17
Jackson
City State
Employerʼs state I.D. no.
State wages, tips, etc.
State income tax
14 Enter box 14 below after entering boxes 18, 19, and 20.
State TN
ZIP Code 04953
Foreign Country
NOTE: Enter box 15 before entering box 14.
e
a
b
cf
Box 12
Code
D
Box 12
Amount
Box 20 1,000.00
Locality name
Box
Box
14 15
If Box 12 code is:
A: Enter amount attributable to RRTA Tier 2 tax
Box 18attributable to RRTABox
M: Enter amount
Tier 219tax
P:Local
Double
click
to etc.
link to FormLocal
3903,income
line 4 tax
wages,
tips,
R: Enter MSA contribution for Taxpayer
Spouse
W: Enter HSA contribution for Taxpayer
Spouse
G:
Employer is not a state or local government
Description or Code Employerʼs state I.D. no.
State
on Actual Form W-2
Amount
Box 20
Locality name
Associated
State
16
17
TurboTaxBox
Identification
of Description Box
or Code
(Identify
this
item by
selecting
the identification
from
State
wages,
tips,
etc.
State income
tax
the drop down list. If not on the list, select Other).
Box 18
Local wages, tips, etc.
-2-
Box 19
Local income tax
Associated
State
Form
1040
2014
(99)
Department of the Treasury—Internal Revenue Service
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2014, or other tax year beginning
Your first name and initial
OMB No. 1545-0074
, 2014, ending
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
Last name
Borrower
John
000-00-0000
Spouse’s social security number
Last name
If a joint return, spouse’s first name and initial
Borrower
Ginny
000-00-0001
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
c
3412 W Silverwood Dr
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Jackson TN 04953
Foreign country name
Filing Status
Check only one
box.
Exemptions
1
4
c
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. a
Married filing separately. Enter spouse’s SSN above
and full name here. a
6a
b
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
Single
Married filing jointly (even if only one had income)
2
3
5
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
If you did not
get a W-2,
see instructions.
Adjusted
Gross
Income
2
Dependents on 6c
not entered above
d
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here a
Income
Make sure the SSN(s) above
and on line 6c are correct.
Total number of exemptions claimed
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
.
8b
. .
.
.
.
.
.
.
.
8a
65,000.
500.
.
.
.
.
.
.
.
9a
500.
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here a
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
26
Health savings account deduction. Attach Form 8889
Moving expenses. Attach Form 3903 . . . . .
27
28
29
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
Self-employed health insurance deduction
. . . .
30
31a
32
Penalty on early withdrawal of savings .
Wages, salaries, tips, etc. Attach Form(s) W-2
.
.
.
.
8a
b
9a
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
b
33
34
35
36
37
.
.
.
.
Alimony paid b Recipient’s SSN
IRA deduction . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
a
.
.
.
.
.
.
.
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
.
.
.
.
.
.
.
.
.
.
.
.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
.
.
.
.
a
21
22
12,000.
-1,000.
24,800.
101,800.
23
24
25
26
27
28
580.
3,500.
29
30
31a
32
33
34
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA
-3-
.
.
.
500.
.
2
.
7
.
Add numbers on
lines above a
.
.
.
.
.
.
a
36
37
REV 12/31/14 TTW
Form
4,080.
97,720.
1040 (2014)
Page 2
97,720.
Form 1040 (2014)
38
Amount from line 37 (adjusted gross income)
Tax and
Credits
39a
Check
if:
If your spouse itemizes on a separate return or you were a dual-status alien, check here a
39b
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$6,200
Married filing
jointly or
Qualifying
widow(er),
$12,400
Head of
household,
$9,100
40
41
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
.
.
42
43
Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
Tax (see instructions). Check if any from: a
Form(s) 8814 b
Other
Taxes
b
44
45
46
53
54
55
56
57
58
59
60a
64
65
66a
b
Paid
Preparer
Use Only
.
Blind.
Blind.
.
}
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
48
.
.
.
.
.
.
52
Residential energy credits. Attach Form 5695 . . . .
53
3800 b
8801 c
Other credits from Form: a
54
Add lines 48 through 54. These are your total credits . . . . .
Subtract line 55 from line 47. If line 55 is more than line 47, enter -0-
.
.
.
.
.
.
.
.
.
.
.
.
.
Self-employment tax. Attach Schedule SE
.
.
.
.
.
.
.
8919
.
.
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Unreported social security and Medicare tax from Form:
a
.
Household employment taxes from Schedule H
.
.
.
.
43
44
45
46
47
.
.
a
.
.
.
b
4137
.
.
First-time homebuyer credit repayment. Attach Form 5405 if required
.
.
.
.
.
.
.
.
.
.
.
.
55
56
57
a
.
.
.
67
68
69
70
American opportunity credit from Form 8863, line 8 .
Net premium tax credit. Attach Form 8962 . . . .
Amount paid with request for extension to file . . .
.
.
.
.
.
.
68
69
70
71
72
71
72
Credits from Form: a
2439 b
Reserved c
Reserved d
73
Add lines 64, 65, 66a, and 67 through 73. These are your total payments .
Excess social security and tier 1 RRTA tax withheld
Credit for federal tax on fuels. Attach Form 4136
.
.
.
.
.
.
10,084.
1,159.
58
59
60a
60b
Health care: individual responsibility (see instructions) Full-year coverage
. . . . .
Form 8960 c
Taxes from: a
Form 8959 b
Instructions; enter code(s)
a
Add lines 56 through 62. This is your total tax . . . . . . . . . . . . .
12,250.
64
Federal income tax withheld from Forms W-2 and 1099 . .
2014 estimated tax payments and amount applied from 2013 return
65
Earned income credit (EIC) . . . . . . . . . . 66a
.
10,084.
49
50
51
Credit for child and dependent care expenses. Attach Form 2441
.
16,045.
81,675.
7,900.
73,775.
10,084.
40
41
42
.
.
.
.
.
.
38
.
Total boxes
checked a 39a
Nontaxable combat pay election
66b
Additional child tax credit. Attach Schedule 8812 .
75
76a
.
.
.
61
62
63
11,243.
74
12,250.
1,007.
1,007.
0.
.
.
.
.
.
.
a
If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid
Amount of line 75 you want refunded to you. If Form 8888 is attached, check here
75
76a
Routing number
Type:
Checking
Savings
X X X X X X X X X
X X X X X X X X X X X X X X X X X
Account number
Amount of line 75 you want applied to your 2015 estimated tax a 77
77
78
Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions a 78
79
Estimated tax penalty (see instructions) . . . . . . .
79
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Yes. Complete below.
b
d
.
a
ac
No
Personal identification
a
number (PIN)
Phone
no. a
Designee’s
name a
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
F
Joint return? See
instructions.
Keep a copy for
your records.
.
67
Direct deposit?
See
a
instructions.
Sign
Here
You were born before January 2, 1950,
Spouse was born before January 2, 1950,
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
a
Third Party
Designee
.
49
50
51
52
73
74
Amount
You Owe
.
Add lines 44, 45, and 46
. . . . . . .
Foreign tax credit. Attach Form 1116 if required .
62
63
Refund
.
47
48
61
If you have a
qualifying
child, attach
Schedule EIC.
.
Alternative minimum tax (see instructions). Attach Form 6251 .
Excess advance premium tax credit repayment. Attach Form 8962
b
Payments
{
.
Daytime phone number
Self-Employed
Spouse’s signature. If a joint return, both must sign.
Print/Type preparer’s name
Firm’s name
Your occupation
a
Date
Spouse’s occupation
Self-Employed
Preparer’s signature
Date
Self-Prepared
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Firm's EIN
Firm’s address a
a
Phone no.
www.irs.gov/form1040
REV 12/31/14 TTW
-4-
Form 1040 (2014)
SCHEDULE A
(Form 1040)
OMB No. 1545-0074
Itemized Deductions
Department of the Treasury
Internal Revenue Service (99)
a Information
about Schedule A and its separate instructions is at www.irs.gov/schedulea.
a Attach to Form 1040.
Name(s) shown on Form 1040
John & Ginny Borrower
Medical
and
Dental
Expenses
Taxes You
Paid
1
2
3
4
5
6
7
8
Interest
You Paid
Note.
Your mortgage
interest
deduction may
be limited (see
instructions).
Caution. Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see instructions) . . . . .
97,720.
Enter amount from Form 1040, line 38
2
Multiply line 2 by 10% (.10). But if either you or your spouse was
born before January 2, 1950, multiply line 2 by 7.5% (.075) instead
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- .
State and local (check only one box):
a
Income taxes, or
. . . . . . . . . . .
b
General sales taxes
Real estate taxes (see instructions) . . . . . . . . .
Personal property taxes . . . . . . . . . . . . .
Other taxes. List type and amount a
}
2014
Attachment
Sequence No. 07
Your social security number
000-00-0000
533.
1
3
.
9,772.
.
.
.
.
.
.
5
3,500.
6
7
1,500.
8
9 Add lines 5 through 8 . . . . . . . . . . . . . . . .
10 Home mortgage interest and points reported to you on Form 1098 10
11 Home mortgage interest not reported to you on Form 1098. If paid
to the person from whom you bought the home, see instructions
and show that person’s name, identifying no., and address a
11
12 Points not reported to you on Form 1098. See instructions for
special rules . . . . . . . . . . . . . . . . .
12
13 Mortgage insurance premiums (see instructions) . . . . .
13
14 Investment interest. Attach Form 4952 if required. (See instructions.) 14
15 Add lines 10 through 14 . . . . . . . . . . . . . . .
Gifts to
16 Gifts by cash or check. If you made any gift of $250 or more,
see instructions . . . . . . . . . . . . . . . .
16
Charity
17 Other than by cash or check. If any gift of $250 or more, see
If you made a
gift and got a
instructions. You must attach Form 8283 if over $500 . . .
17
benefit for it,
18 Carryover from prior year . . . . . . . . . . . .
18
see instructions.
19 Add lines 16 through 18 . . . . . . . . . . . . . . .
.
.
.
.
.
.
4,500.
4
0.
9
5,000.
15
7,399.
19
1,000.
27
2,646.
2,899.
.
.
.
.
.
.
1,000.
.
.
.
.
.
.
Casualty and
Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . .
20
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues,
and Certain
job education, etc. Attach Form 2106 or 2106-EZ if required.
Miscellaneous
4,600.
21
(See instructions.) a Deductible expenses from Form 2106
Deductions
22 Tax preparation fees . . . . . . . . . . . . .
22
23 Other expenses—investment, safe deposit box, etc. List type
and amount a
Other
Miscellaneous
Deductions
24
25
26
27
28
23
Add lines 21 through 23 . . . . . . . . . . . .
24
97,720.
Enter amount from Form 1040, line 38 25
Multiply line 25 by 2% (.02) . . . . . . . . . . .
26
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- .
Other—from list in instructions. List type and amount a
4,600.
.
.
.
1,954.
.
.
28
29 Is Form 1040, line 38, over $152,525?
Total
Itemized
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
Deductions
}
.
Yes. Your deduction may be limited. See the Itemized Deductions
Worksheet in the instructions to figure the amount to enter.
30 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . a
For Paperwork Reduction Act Notice, see Form 1040 instructions. BAA
-5-
REV 12/30/14 TTW
.
29
16,045.
Schedule A (Form 1040) 2014
Form
2106
Department of the Treasury
Internal Revenue Service (99)
Your name
2014
a Attach to Form 1040 or Form 1040NR.
Attachment
a Information about Form 2106 and its separate instructions is available at www.irs.gov/form2106.
Sequence No.
Occupation in which you incurred expenses Social security number
Ginny Borrower
Part I
OMB No. 1545-0074
Employee Business Expenses
Sales Represenative
129
000-00-0001
Employee Business Expenses and Reimbursements
Column A
Other Than Meals
and Entertainment
Step 1 Enter Your Expenses
1 Vehicle expense from line 22 or line 29. (Rural mail carriers: See
instructions.) . . . . . . . . . . . . . . . . . .
2 Parking fees, tolls, and transportation, including train, bus, etc., that
did not involve overnight travel or commuting to and from work .
3 Travel expense while away from home overnight, including lodging,
airplane, car rental, etc. Do not include meals and entertainment .
4 Business expenses not included on lines 1 through 3. Do not include
meals and entertainment . . . . . . . . . . . . . .
5 Meals and entertainment expenses (see instructions) . . . . .
6 Total expenses. In Column A, add lines 1 through 4 and enter the
result. In Column B, enter the amount from line 5 . . . . . .
1
2,535.
2
65.
3
1,300.
Column B
Meals and
Entertainment
4
1,400.
5
3,900.
6
1,400.
Note. If you were not reimbursed for any expenses in Step 1, skip line 7 and enter the amount from line 6 on line 8.
Step 2 Enter Reimbursements Received From Your Employer for Expenses Listed in Step 1
7 Enter reimbursements received from your employer that were not
reported to you in box 1 of Form W-2. Include any reimbursements
reported under code “L” in box 12 of your Form W-2 (see
instructions) . . . . . . . . . . . . . . . . . . .
7
Step 3 Figure Expenses To Deduct on Schedule A (Form 1040 or Form 1040NR)
8 Subtract line 7 from line 6. If zero or less, enter -0-. However, if line 7
is greater than line 6 in Column A, report the excess as income on
Form 1040, line 7 (or on Form 1040NR, line 8) . . . . . . .
3,900.
1,400.
3,900.
9
10 Add the amounts on line 9 of both columns and enter the total here. Also, enter the total on
Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 7). (Armed Forces
reservists, qualified performing artists, fee-basis state or local government officials, and individuals
with disabilities: See the instructions for special rules on where to enter the total.) . . . . . a
700.
8
Note. If both columns of line 8 are zero, you cannot deduct
employee business expenses. Stop here and attach Form 2106 to
your return.
9 In Column A, enter the amount from line 8. In Column B, multiply line
8 by 50% (.50). (Employees subject to Department of Transportation
(DOT) hours of service limits: Multiply meal expenses incurred while
away from home on business by 80% (.80) instead of 50%. For
details, see instructions.) . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
-6-
REV 11/14/14 TTW
10
4,600.
Form 2106 (2014)
Form 2106 (2014)
Part II
Page
Section A—General Information (You must complete this section if you
are claiming vehicle expenses.)
11
12
13
14
15
16
17
18
19
20
21
2
Vehicle Expenses
Enter the date the vehicle was placed in service . . . . . . . .
Total miles the vehicle was driven during 2014
. . . . . . . .
Business miles included on line 12 . . . . . . . . . . . .
Percent of business use. Divide line 13 by line 12 . . . . . . . .
Average daily roundtrip commuting distance . . . . . . . . .
Commuting miles included on line 12
. . . . . . . . . . .
Other miles. Add lines 13 and 16 and subtract the total from line 12
.
Was your vehicle available for personal use during off-duty hours? . .
Do you (or your spouse) have another vehicle available for personal use?
Do you have evidence to support your deduction? . . . . . . .
If “Yes,” is the evidence written? . . . . . . . . . . . . .
(a) Vehicle 1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
13
14
15
16
17
.
.
.
.
.
.
.
.
(b) Vehicle 2
06/15/2010
5,000 miles
3,214 miles
64.28 %
6 miles
1,000 miles
786 miles
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
Yes
Yes
Yes
miles
miles
%
miles
miles
miles
No
No
No
No
Section B—Standard Mileage Rate (See the instructions for Part II to find out whether to complete this section or Section C.)
22
Multiply line 13 by 56¢ (.56). Enter the result here and on line 1 . . .
(a) Vehicle 1
Gasoline, oil, repairs, vehicle
23
insurance, etc. . . . . . .
23
24a Vehicle rentals . . . . . .
24a
b Inclusion amount (see instructions) .
24b
c Subtract line 24b from line 24a .
24c
Value of employer-provided vehicle
25
(applies only if 100% of annual
lease value was included on Form
W-2—see instructions) . . . .
25
26
Add lines 23, 24c, and 25. . .
26
Multiply line 26 by the percentage
27
on line 14 . . . . . . . .
27
28
Depreciation (see instructions) .
28
Add lines 27 and 28. Enter total
29
here and on line 1 . . . . .
29
.
.
.
.
Section C—Actual Expenses
.
.
.
.
22
(b) Vehicle 2
2,168.
2,168.
1,394.
1,141.
2,535.
Section D—Depreciation of Vehicles (Use this section only if you owned the vehicle and are completing Section C for the vehicle.)
(a) Vehicle 1
30
Enter cost or other basis (see
instructions) . . . . . . .
30
31
Enter section 179 deduction (see
instructions) . . . . . . .
31
32
33
34
Multiply line 30 by line 14 (see
instructions if you claimed the
section 179 deduction) . . .
Enter depreciation method and
percentage (see instructions) .
Multiply line 32 by the percentage
on line 33 (see instructions) . .
35
36
Add lines 31 and 34 . . . .
Enter the applicable limit explained
in the line 36 instructions . . .
37
Multiply line 36 by the percentage
on line 14 . . . . . . . .
38
Enter the smaller of line 35 or line
37. If you skipped lines 36 and 37,
enter the amount from line 35.
Also enter this amount on line 28
above . . . . . . . . .
32
33
18,000.
11,570.
SL
20.00
2,314.
2,314.
34
35
36
(b) Vehicle 2
1,775.
1,141.
37
1,141.
38
REV 11/14/14 TTW
-7-
Form 2106 (2014)
SCHEDULE C
(Form 1040)
Profit or Loss From Business
OMB No. 1545-0074
2014
(Sole Proprietorship)
a Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.
a Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.
Department of the Treasury
Internal Revenue Service (99)
Attachment
Sequence No. 09
Name of proprietor
Social security number (SSN)
A
Principal business or profession, including product or service (see instructions)
B Enter code from instructions
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN), (see instr.)
E
Business address (including suite or room no.)
John Borrower
000-00-0000
Computer Repair Service
a
Up & Running
a
8 1 1 4 9 0
1400 W Commercial Ave
F
G
H
Jackson, TN 04953
City, town or post office, state, and ZIP code
Cash
(2)
Accrual
(3)
Other (specify) a
Accounting method:
(1)
Did you “materially participate” in the operation of this business during 2014? If “No,” see instructions for limit on losses
If you started or acquired this business during 2014, check here . . . . . . . . . . . . . . . . .
I
J
Did you make any payments in 2014 that would require you to file Form(s) 1099? (see instructions) .
If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . .
Part I
.
.
Income
.
.
.
.
.
.
.
.
.
.
.
Yes
No
Yes
Yes
No
No
a
.
.
2
3
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . a
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
4
5
6
Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .
.
.
.
.
.
.
.
.
.
4
5
6
7
Gross income. Add lines 5 and 6 .
.
.
a
7
32,000.
50.
1
Part II
Advertising .
9
Car and truck expenses (see
instructions) . . . . .
Commissions and fees .
11
12
13
.
.
.
.
Contract labor (see instructions)
Depletion . . . . .
Depreciation and section 179
expense
deduction
(not
included in Part III) (see
instructions) . . . . .
14
Employee benefit programs
(other than on line 19) . .
Insurance (other than health)
15
16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
3
Expenses. Enter expenses for business use of your home only on line 30.
8
10
.
1
8
9
10
1,000.
Office expense (see instructions)
18
19
20
Pension and profit-sharing plans .
Rent or lease (see instructions):
Vehicles, machinery, and equipment
19
20a
Other business property . . .
Repairs and maintenance . . .
Supplies (not included in Part III) .
20b
21
22
Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .
23
24a
25
Deductible meals and
entertainment (see instructions) .
Utilities . . . . . . . .
24b
25
26
27a
b
Wages (less employment credits) .
Other expenses (from line 48) . .
Reserved for future use . . .
26
27a
27b
a
11
12
13
18
b
21
22
2,400.
23
24
a
14
15
b
1,000.
17
Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .
Legal and professional services
28
Total expenses before expenses for business use of home. Add lines 8 through 27a .
.
.
.
.
.
a
28
29
30
Tentative profit or (loss). Subtract line 28 from line 7 .
.
.
.
.
.
.
29
a
b
16a
16b
3,800.
600.
17
.
.
.
.
.
.
.
.
.
.
.
. Use the Simplified
. . . . . . .
Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
32
60,000.
28,000.
32,000.
2,000.
1,000.
1,650.
6,000.
500.
20,000.
12,000.
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business:
Method Worksheet in the instructions to figure the amount to enter on line 30
31
.
60,000.
If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and
on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and
trusts, enter on Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see the separate instructions.
BAA
-8-
}
}
REV 01/08/15 TTW
30
31
32a
32b
12,000.
All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2014
Page 2
Schedule C (Form 1040) 2014
Part III
Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory:
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
Yes
.
No
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
26,000.
36
Purchases less cost of items withdrawn for personal use
.
.
.
.
.
.
.
.
.
.
.
.
.
.
36
15,000.
37
Cost of labor. Do not include any amounts paid to yourself .
.
.
.
.
.
.
.
.
.
.
.
.
.
37
38
Materials and supplies
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
38
39
Other costs .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
39
40
Add lines 35 through 39 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
40
43,000.
41
Inventory at end of year .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
41
15,000.
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 .
Part IV
.
.
.
2,000.
. . . . .
28,000.
42
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43
When did you place your vehicle in service for business purposes? (month, day, year)
44
Of the total number of miles you drove your vehicle during 2014, enter the number of miles you used your vehicle for:
a
a
b Commuting (see instructions)
Business
c Other
Yes
No
45
Was your vehicle available for personal use during off-duty hours?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
46
Do you (or your spouse) have another vehicle available for personal use?.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
47a
Do you have evidence to support your deduction?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
If “Yes,” is the evidence written?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
b
Part V
.
.
.
.
.
.
Other Expenses. List below business expenses not included on lines 8–26 or line 30.
Dues
100.
Laundry
400.
48
Total other expenses. Enter here and on line 27a .
.
.
.
.
.
.
REV 01/08/15 TTW
-9-
.
.
.
.
.
.
.
.
.
48
500.
Schedule C (Form 1040) 2014
SCHEDULE D
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
OMB No. 1545-0074
Capital Gains and Losses
a
Attachment
Sequence No. 12
Your social security number
Name(s) shown on return
John & Ginny Borrower
Part I
2014
a Attach to Form 1040 or Form 1040NR.
Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
a Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
000-00-0000
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
2 Totals for all transactions reported on Form(s) 8949 with
Box B checked . . . . . . . . . . . . .
3 Totals for all transactions reported on Form(s) 8949 with
Box C checked . . . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
to gain or loss from
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with
5,000.
6,000.
Box D checked . . . . . . . . . . . . .
9 Totals for all transactions reported on Form(s) 8949 with
Box E checked . . . . . . . . . . . . .
10 Totals for all transactions reported on Form(s) 8949 with
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
11
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
12
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
- 10 -
REV 11/26/14 TTW
-1,000.
14 (
15
)
-1,000.
Schedule D (Form 1040) 2014
Page 2
Schedule D (Form 1040) 2014
Part III
16
Summary
Combine lines 7 and 15 and enter the result
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
-1,000.
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line
14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete
line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form
1040NR, line 14. Then go to line 22.
17
Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18
Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions
a
18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . a
19
20
.
.
Are lines 18 and 19 both zero or blank?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines
21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21
and 22 below.
21
If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or
• ($3,000), or if married filing separately, ($1,500)
}
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
21 (
1,000. )
Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22
Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
REV 11/26/14 TTW
- 11 -
Schedule D (Form 1040) 2014
Attachment Sequence No. 12A
Form 8949 (2014)
Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side
John & Ginny Borrower
Page 2
Social security number or taxpayer identification number
000-00-0000
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either may show your basis (usually your cost) even if your broker did not report it to the IRS.
Brokers must report basis to the IRS for most stock you bought in 2011 or later (and for certain debt instruments you bought in 2014 or later).
Part II
Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term
transactions, see page 1.
Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a;
you are not required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
IBM
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
(c)
Date sold or
disposed
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
05/05/12 12/17/14
5000.00
6000.00
-1000.00
5000.00
6000.00
-1000.00
(b)
Date acquired
(Mo., day, yr.)
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 8b (if Box D above is checked), line 9 (if Box E
above is checked), or line 10 (if Box F above is checked) a
Note. If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949 (2014)
REV 12/11/14 TTW
- 12 -
SCHEDULE E
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Supplemental Income and Loss
OMB No. 1545-0074
(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Attach to Form 1040, 1040NR, or Form 1041.
a Information about Schedule E and its separate instructions is at www.irs.gov/schedulee.
a
2014
Attachment
Sequence No. 13
Your social security number
John & Ginny Borrower
Income or Loss From Rental Real Estate and Royalties
Part I
000-00-0000
Note. If you are in the business of renting personal property, use
Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.
A Did you make any payments in 2014 that would require you to file Form(s) 1099? (see instructions)
Yes
No
B If “Yes,” did you or will you file required Forms 1099?
Yes
No
1a Physical address of each property (street, city, state, ZIP code)
A
111 State Street Jackson TN 04953
B
229 N 9th St Jackson TN 04900
C
321 Ridley Blvd Memphis TN 04925
Fair Rental
Personal Use
2 For each rental real estate property listed
1b
Type of Property
QJV
above, report the number of fair rental and
Days
Days
(from list below)
personal use days. Check the QJV box
1
365
0
A
A
only if you meet the requirements to file as
a qualified joint venture. See instructions.
4
B
365
0
B
1
C
90
0
C
Type of Property:
1 Single Family Residence
3 Vacation/Short-Term Rental 5 Land
7 Self-Rental
2 Multi-Family Residence
4 Commercial
6 Royalties
8 Other (describe)
Income:
Properties:
A
B
C
17,500.
4,000.
6,200.
3 Rents received . . . . . . . . . . . . .
3
4 Royalties received . . . . . . . . . . . .
4
Expenses:
500.
100.
5
Advertising . . . . . . . . . . . . . .
5
6
Auto and travel (see instructions) . . . . . . .
6
400.
750.
150.
7
Cleaning and maintenance . . . . . . . . .
7
8
Commissions. . . . . . . . . . . . . .
8
9
Insurance . . . . . . . . . . . . . . .
9
50.
2,300.
300.
10
Legal and other professional fees . . . . . . .
10
11
Management fees . . . . . . . . . . . .
11
5,300.
4,400.
12
Mortgage interest paid to banks, etc. (see instructions)
12
13
Other interest. . . . . . . . . . . . . .
13
14
Repairs. . . . . . . . . . . . . . . .
14
15
Supplies . . . . . . . . . . . . . . .
15
16
Taxes . . . . . . . . . . . . . . . .
16
1,200.
1,200.
350.
2,500.
17
Utilities . . . . . . . . . . . . . . . .
17
2,000.
2,500.
18
Depreciation expense or depletion . . . . . . .
18
Other (list) a Home Owners Assoc. Fees
19
19
600.
20
Total expenses. Add lines 5 through 19 . . . . .
20
14,050.
1,500.
8,550.
Subtract line 20 from line 3 (rents) and/or 4 (royalties). If
result is a (loss), see instructions to find out if you must
-2,350.
3,450.
file Form 6198 . . . . . . . . . . . . .
21
Deductible rental real estate loss after limitation, if any,
22
)(
2,350. ) (
on Form 8582 (see instructions) . . . . . . .
22 (
27,700.
23a Total of all amounts reported on line 3 for all rental properties
. . . .
23a
b Total of all amounts reported on line 4 for all royalty properties . . . .
23b
9,700.
c Total of all amounts reported on line 12 for all properties . . . . . .
23c
4,500.
d Total of all amounts reported on line 18 for all properties . . . . . .
23d
24,100.
e Total of all amounts reported on line 20 for all properties . . . . . .
23e
24
Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . .
24
25
Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 (
21
26
Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here.
If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line
17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . .
For Paperwork Reduction Act Notice, see the separate instructions.
BAA
- 13 -
REV 12/31/14 TTW
26
2,500.
)
5,950.
2,350. )
3,600.
Schedule E (Form 1040) 2014
Attachment Sequence No. 13
Page 2
Your social security number
Schedule E (Form 1040) 2014
Name(s) shown on return. Do not enter name and social security number if shown on other side.
John & Ginny Borrower
000-00-0000
Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
Income or Loss From Partnerships and S Corporations
Part II
Note. If you report a loss from an at-risk activity for which
any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 6198. See instructions.
27
Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year
unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If
Yes
No
you answered “Yes,” see instructions before completing this section.
28
(b) Enter P for
partnership; S
for S corporation
(a) Name
A Tanglewood Realty
Westchester Develpment,
LLCLLC
B Westchester
Development,
C Creative Network Design Systems
D
Passive Income and Loss
(f) Passive loss allowed
(attach Form 8582 if required)
A
B
C
D
29a
b
30
31
32
P
P
S
(g) Passive income
from Schedule K–1
(e) Check if
any amount is
not at risk
00-0000000
00-0000000
00-0000000
(h) Nonpassive loss
from Schedule K–1
(i) Section 179 expense
deduction from Form 4562
(j) Nonpassive income
from Schedule K–1
5,800.
2,000.
25,000.
Totals
5,800.
Totals
Add columns (g) and (j) of line 29a . . . . . . . . . . . . . . .
Add columns (f), (h), and (i) of line 29b . . . . . . . . . . . . .
Total partnership and S corporation income or (loss). Combine lines 30
result here and include in the total on line 41 below . . . . . . . . .
2,000.
. . .
. . .
and 31.
. . .
. .
. .
Enter
. .
.
.
the
.
Income or Loss From Estates and Trusts
33
30
31 (
27,000.
5,800. )
32
21,200.
(b) Employer
identification number
(a) Name
A
B
Passive Income and Loss
(c) Passive deduction or loss allowed
(attach Form 8582 if required)
Totals
Totals
Add columns (d) and (f) of line 34a .
Add columns (c) and (e) of line 34b
Total estate and trust income or
include in the total on line 41 below
Part IV
38
39
(d) Employer
identification
number
Nonpassive Income and Loss
21,000.
4,000.
Part III
A
B
34a
b
35
36
37
(c) Check if
foreign
partnership
Nonpassive Income and Loss
(d) Passive income
from Schedule K–1
. .
. .
(loss).
. .
. . . . . . . .
. . . . . . . .
Combine lines 35 and
. . . . . . . .
(e) Deduction or loss
from Schedule K–1
. . . . .
. . . . .
36. Enter the
. . . . .
. .
. .
result
. .
. . .
. . .
here and
. . .
35
36 (
)
37
Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder
(a) Name
(b) Employer identification
number
(c) Excess inclusion from
Schedules Q, line 2c
(see instructions)
(d) Taxable income (net loss)
from Schedules Q, line 1b
Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below
Part V
(f) Other income from
Schedule K–1
(e) Income from
Schedules Q, line 3b
39
Summary
40
41
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 a
42
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code
V; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . .
42
43
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you reported
anywhere on Form 1040 or Form 1040NR from all rental real estate activities
in which you materially participated under the passive activity loss rules . .
43
REV 12/31/14 TTW
- 14 -
40
41
24,800.
Schedule E (Form 1040) 2014
Form
8582
Department of the Treasury
Internal Revenue Service (99)
Passive Activity Loss Limitations
a See
OMB No. 1545-1008
separate instructions.
a Attach
to Form 1040 or Form 1041.
a Information about Form 8582 and its instructions is available at www.irs.gov/form8582.
2014
Attachment
Sequence No. 88
Identifying number
Name(s) shown on return
John & Ginny Borrower
Part I
2014 Passive Activity Loss
000-00-0000
Caution: Complete Worksheets 1, 2, and 3 before completing Part I.
Rental Real Estate Activities With Active Participation (For the definition of active
Special Allowance for Rental Real Estate Activities in the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
column (a)) . . . . . . . . . . . . . . . . . .
1a
b Activities with net loss (enter the amount from Worksheet 1, column
(b)) . . . . . . . . . . . . . . . . . . . . .
1b (
c Prior years unallowed losses (enter the amount from Worksheet 1,
1c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a (
b Prior year unallowed commercial revitalization deductions from
2b (
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
3a Activities with net income (enter the amount from Worksheet 3,
column (a)) . . . . . . . . . . . . . . . . . .
3a
b Activities with net loss (enter the amount from Worksheet 3, column
(b)) . . . . . . . . . . . . . . . . . . . . .
3b (
c Prior years unallowed losses (enter the amount from Worksheet 3,
3c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 3a, 3b, and 3c . . . . . . . . . . . . . . . .
participation, see
5,950.
2,350. )
)
.
.
.
.
.
1d
.
3,600.
)
)
.
.
.
.
.
2c (
.
)
25,000.
0. )
)
.
.
.
.
.
.
3d
25,000.
4
Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with
your return; all losses are allowed, including any prior year unallowed losses entered on line 1c,
28,600.
2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . .
4
If line 4 is a loss and:
• Line 1d is a loss, go to Part II.
• Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III.
• Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15.
Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete
Part II or Part III. Instead, go to line 15.
Part II
5
6
7
8
9
10
Note: Enter all numbers in Part II as positive amounts. See instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
6
Enter $150,000. If married filing separately, see instructions . .
Enter modified adjusted gross income, but not less than zero (see instructions)
7
Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9,
enter -0- on line 10. Otherwise, go to line 8.
Subtract line 7 from line 6 . . . . . . . . . . . . .
8
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see instructions
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III
11
12
13
14
5
9
10
0.
Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities
Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions.
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
11
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
12
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
13
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14
Part IV
15
16
Special Allowance for Rental Real Estate Activities With Active Participation
Total Losses Allowed
Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2014. Add lines 10, 14, and 15. See
instructions to find out how to report the losses on your tax return . . . . . . . . . . .
For Paperwork Reduction Act Notice, see instructions. BAA
REV 01/15/15 TTW
- 15 -
15
16
Form 8582 (2014)
Schedule K-1
(Form 1065)
Schedule
K-1
Department
of the
Treasury
Internal
(FormRevenue
1065)Service
year beginning
year beginning
See back of form and separate instructions.
Partnership’s employer identification number
E
TN
16
Foreign transactions
4
3
Guaranteed
payments
Other net rental
income (loss)
16
Foreign transactions
2,000
5
4
Guaranteed
payments
Interest
income
6a
5
Ordinary
dividends
Interest income
6b
6a
Qualified
dividends
Ordinary dividends
7
6b
Royalties
Qualified dividends
2,000
2,000
TN
04921
Check ifwhere
this ispartnership
a publicly traded
partnership (PTP)
IRS Center
filed return
8
7
Net
short-term capital gain (loss)
Royalties
Check if this is a publicly traded partnership (PTP)
9a
8
Net long-term
short-termcapital
capitalgain
gain(loss)
(loss)
17
9b
9a
Collectibles
(28%
) gain
(loss)
Net long-term
capital
gain
(loss)
17
9c
9b
Unrecaptured
section
Collectibles (28%
) gain1250
(loss)gain
10
9c
Net
section 1231
gain 1250
(loss) gain
Unrecaptured
section
18
Tax-exempt income and
nondeductible expenses
11
10
Other
income
(loss)
Net section
1231
gain (loss)
18
C
Tax-exempt income and
nondeductible expenses
11
Other income (loss)
C
Partner’s identifying number
Partner’s name,
address,
city, state, and ZIP code
identifying
number
Partner’s name, address, city, state, and ZIP code
JOHN SILVERWOOD
BORROWER
3412
DR
JACKSON
X SILVERWOOD
G
3412
DR
General partner or LLC
member-manager
JACKSON
X Domestic
H
G
General partner
partneror LLC
TN
member
TN
04953
04953
Foreign partner
member
member-manager
H
I1
X Domestic
What
type of entity
is this partner?
partner
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
. . type
. of. entity
. is
. this
. partner?
. . . INDIVIDUAL
. . . . . . . .
What
.
12
Section 179 deduction
If this partner
is of
a retirement
check here
Partner’s
share
profit, loss,plan
and(IRA/SEP/Keogh/etc.),
capital (see instructions):
. . . . .Beginning
. . . . . . . . . . Ending
. . .
.
13
12
Other
deductions
Section
179 deduction
13
Other deductions
I1
I2
J
J
STMT
20 %(see instructions):
Profit
Partner’s share of profit, loss, and capital
Beginning
Ending
20 %
Loss
20 %
20 %
20 %
20 %
20 %
Department
of the Treasury
Nonrecourse
. . . . . . For
$ calendar year 2014, or tax
Internal Revenue Service
Qualified
financing
. year
$ beginning
K
Partner’s nonrecourse
share of liabilities
at year end:
Recourse
Nonrecourse.
.
.
$
Qualified nonrecourse financing
.
.
.
.
.
$
ending
Final K-1
14
, 2014
14
2
, 20
L
Recourse
. . account
. . analysis:
. . .
$
Partner’s capital
See back of form and separate instructions.
41,300
Beginning capital account . . .
$
L
Capital
contributed
duringanalysis:
the year
Partner’s
capital account
A
Current
year
increase
(decrease)
Beginning
capital
account
. . . number
$
Partnership’s
employer
identification
Withdrawals
& distributions
. .
Capital contributed
during the year
00-0000000
B
$ (
Ending
capital
account
. . city,
. state,
.
$ and ZIP code
Current
year increase
(decrease)
Partnership’s
name,
address,
Withdrawals & REALTY
distributions
.
TANGLEWOOD
Ending
. GAAP
. .
Taxcapital
basis account X
42 WILLOW
BLVD
Other (explain)
X GAAP
JACKSON
Tax basis
.
$ (
.
$
Did
partner
contribute
property
with a built-in gain or loss?
Other
(explain)
IRS the
Center
where
partnership
filed return
M
D
X No
Yes
If
“Yes,”
(see instructions)
Did the
partner
contribute
property
with
a built-in(PTP)
gain or loss?
Check
if attach
this
is astatement
publicly
traded
partnership
X Notice,
For Paperwork
Yes Reduction Act
No see Instructions for Form 1065.
ISA
If “Yes,” attach statement (see instructions)
For
Act Notice, see Instructions for Form 1065.
E Paperwork
Partner’s Reduction
identifying number
000-00-0000
F
19
Distributions
20
Other information
20
Amended K-1
OMB No. 1545-0123
Other information
Credits
(3,800)
(5,800)
Self-employment
earnings
(loss)
Net
rental real estate
income
(loss)
((3,800)
3,800)
Other
net rental
income (loss)
16 Foreign
transactions
3
*See
attached
statement
for additional
information.
6a
Ordinary dividends
6b
Qualified dividends
38,600
TN 704(b)
04921
Section
book
M
C
Partner’s name, address, city, state, and ZIP code
JOHN BORROWER
Distributions
Guaranteed
4
2,400 *See
attachedpayments
statement for additional information.
(5,100)
41,300
2,000
5
Interest income
2,400)
(5,100)
38,600
)
Section 704(b) book
19
Self-employment earnings (loss)
A
A
$
500
STMT
500
INDIVIDUAL
Foreign partner
20 %
Profit
Schedule
K-1
20 %
Loss
(Form
1065)share of liabilities at year end:
20 %
K
Partner’s
ISA
Other
net rental
income
(loss)(loss)
Net
rental
real estate
income
Credits
04921
JOHN
BORROWER
000-00-0000
F
3
2
((5,800)
5,800)
Partnership’s name, address, city, state, and ZIP code
000-00-0000
F
E
(5,800)
Net rental real estate income (loss)
name, address,
city, state,
and ZIP code
Partnership’s employer
identification
number
TANGLEWOOD
REALTY
42
WILLOW BLVD
JACKSON
42
WILLOW
BLVD
C
IRS Center where
partnership filed return
JACKSON
D
OMB No. 1545-0123
2
, 2014
TANGLEWOOD
00-0000000 REALTY
D
C
Amended K-1
, 2014
ending year 2014, or tax
, 20
For calendar
00-0000000
B
Final K-1
OMB No. 1545-0123
Credits
ending
, 20
See back of form and separate instructions.
B
A
Amended K-1
For calendar year 2014, or tax
Department of the Treasury
Internal Revenue Service
A
Final K-1
7
Royalties
8
Net short-term capital gain (loss)
IRS.gov/form1065
9a Net long-term capital gain (loss)
IRS.gov/form1065
9b Collectibles (28% ) gain (loss)
- 16 -
9c
Unrecaptured section 1250 gain
Schedule K-1 (Form 1065) 2014
17
Schedule K-1 (Form 1065) 2014
Schedule K-1 (Form 1065)
Line 18 – Nondeductible Expenses
Travel and entertainment
500
Total
500
STATEMENT
- 17 -
Final K-1
Schedule K-1
(Form 1065)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0123
Amended K-1
Credits
For calendar year 2014, or tax
year beginning
, 2014
ending
, 20
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Guaranteed payments
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
10,500
See back of form and separate instructions.
A
Partnership’s name, address, city, state, and ZIP code
WESTCHESTER DEVELOPMENT, LLC
3412 WEST SILVERWOOD DR
JACKSON
C
TN
04953
IRS Center where partnership filed return
D
E
Check if this is a publicly traded partnership (PTP)
3412 SILVERWOOD DR
JACKSON
X General partner or LLC
G
TN
member-manager
member
Domestic partner
Foreign partner
X
I1
What type of entity is this partner?
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
. . . . . . . . . . . . . . . . . .
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28% ) gain (loss)
9c
Unrecaptured section 1250 gain
10
Net section 1231 gain (loss)
11
Other income (loss)
12
Section 179 deduction
13
Other deductions
17
50 %
50 %
50 %
Loss
18
Tax-exempt income and
nondeductible expenses
19
Distributions
20
Other information
INDIVIDUAL
.
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
Profit
50 %
50 %
50 %
Partner’s share of liabilities at year end:
Nonrecourse
L
8
04953
H
K
Royalties
Partner’s name, address, city, state, and ZIP code
JOHN BORROWER
J
7
Partner’s identifying number
000-00-0000
F
Foreign transactions
Partnership’s employer identification number
00-0000000
B
16
.
.
$
Qualified nonrecourse financing
.
$
Recourse
.
$
.
$
.
.
.
.
.
.
.
.
.
.
14
*See attached statement for additional information.
Partner’s capital account analysis:
Beginning capital account .
.
Capital contributed during the year
$
Current year increase (decrease)
.
$
Withdrawals & distributions
.
.
$ (
.
.
$
Ending capital account .
Tax basis
.
GAAP
Self-employment earnings (loss)
)
Section 704(b) book
Other (explain)
M
Did the partner contribute property with a built-in gain or loss?
X No
Yes
If “Yes,” attach statement (see instructions)
ISA
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
IRS.gov/form1065
- 18 -
Schedule K-1 (Form 1065) 2014
Final K-1
Schedule K-1
(Form 1065)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0123
Amended K-1
Credits
For calendar year 2014, or tax
year beginning
, 2014
ending
, 20
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Guaranteed payments
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
10,500
See back of form and separate instructions.
A
Partnership’s name, address, city, state, and ZIP code
WESTCHESTER DEVELOPMENT, LLC
3412 WEST SILVERWOOD DR
JACKSON
C
TN
04953
IRS Center where partnership filed return
D
E
Check if this is a publicly traded partnership (PTP)
3412 SILVERWOOD DR
JACKSON
X General partner or LLC
G
TN
member-manager
member
Domestic partner
Foreign partner
X
I1
What type of entity is this partner?
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
. . . . . . . . . . . . . . . . . .
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28% ) gain (loss)
9c
Unrecaptured section 1250 gain
10
Net section 1231 gain (loss)
11
Other income (loss)
12
Section 179 deduction
13
Other deductions
17
50 %
50 %
50 %
Loss
18
Tax-exempt income and
nondeductible expenses
19
Distributions
20
Other information
INDIVIDUAL
.
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
Profit
50 %
50 %
50 %
Partner’s share of liabilities at year end:
Nonrecourse
L
8
04953
H
K
Royalties
Partner’s name, address, city, state, and ZIP code
GINNY BORROWER
J
7
Partner’s identifying number
000-00-0001
F
Foreign transactions
Partnership’s employer identification number
00-0000000
B
16
.
.
$
Qualified nonrecourse financing
.
$
Recourse
.
$
.
$
.
.
.
.
.
.
.
.
.
.
14
*See attached statement for additional information.
Partner’s capital account analysis:
Beginning capital account .
.
Capital contributed during the year
$
Current year increase (decrease)
.
$
Withdrawals & distributions
.
.
$ (
.
.
$
Ending capital account .
Tax basis
.
GAAP
Self-employment earnings (loss)
)
Section 704(b) book
Other (explain)
M
Did the partner contribute property with a built-in gain or loss?
X No
Yes
If “Yes,” attach statement (see instructions)
ISA
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
IRS.gov/form1065
- 19 -
Schedule K-1 (Form 1065) 2014
14
Schedule K-1
(Form 1120S)
Department of the Treasury
Internal Revenue Service
For calendar year 2014, or tax
year beginning
, 20
OMB No. 1545-0123
Amended K-1
Deductions, Credits, and Other Items
1
Code
, 2014
ending
Final K-1
Part III Shareholder’s Share of Current Year Income,
Ordinary business income (loss)
13
Credits
14
Foreign transactions
Code
4,000
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Interest income
See back of form and separate instructions.
Part I
A
Information About the Corporation
5a Ordinary dividends
Corporation’s employer identification number
00-0000000
B
Name
5b Qualified dividends
Corporation’s name, address, city, state, and ZIP code
CREATIVE NETWORK DESIGN SYSTEMS
Name
Addr
City
42000 N. EXECUTIVE DR.
JACKSON
TN 04900
St
C
Royalties
7
Net short-term capital gain (loss)
8a Net long-term capital gain (loss)
IRS Center where corporation filed return
Part II
D
Zip Code
6
8b Collectibles (28% ) gain (loss)
Information About the Shareholder
8c Unrecaptured section 1250 gain
Shareholder’s identifying number
000-00-0000
E
Name
9
Shareholder’s name, address, city, state, and ZIP code
Name
Addr
City
Net section 1231 gain (loss)
JOHN BORROWER
3412 W SILVERWOOD DR.
JACKSON
Shareholder’s percentage of stock
ownership for tax year . . . .
Other income (loss)
15
11
Section 179 deduction
16
Items affecting shareholder basis
D
2,500
TN 04953
St
F
10
.
.
.
Zip Code
50.0000 %
12
Other deductions
17
Other information
* See attached statement for additional information.
For Paperwork Reduction Act Notice, see Instructions for Form 1120S.
IRS.gov/form1120s
ISA
- 20 -
Schedule K-1 (Form 1120S) 2014
TANGLEWOOD REALTY
00-0000000
42 WILLOW BLVD
01/01/2002
JACKSON, TN
04921
364,300
X
5
80,500
80,500
80,500
80,500
40,000
10,000
13,000
6,000
1,000
16,000
16,000
21,000
2,500
109,500
(29,000)
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 21 -
00-0000000
04921
- 22 -
- 23 -
(29,000)
10,000
(19,000)
SEE STATEMENT 1
- 24 -
2,500
(19,000)
NONE
7,500
60,000
16,000
44,000
67,500
8,000
21,000
31,000
425,000
131,200
293,800
59,500
425,000
141,200
283,800
376,300
364,300
16,340
30,000
27,840
26,000
123,460
117,460
206,500
376,300
193,000
364,300
(25,500)
6,000
6,000
6,000
2,500
2,500
(23,000)
(29,000)
206,500
12,000
(25,500)
193,000
- 25 -
193,000
Form 1065, Page 1 Detail
Line 20 – Other deductions
Travel and entertainment
2,500
Total
2,500
Form 1065, Page 4 Detail
Line 18c – Nondeductible Expenses
Travel and entertainment
2,500
Total
2,500
STATEMENT 1
- 26 -
WESTCHESTER DEVELOPMENT, LLC
00-0000000
3412 WEST SILVERWOOD DR
05/20/2011
01/01/2012
JACKSON, TN
04953
X
2
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 27 -
00-0000000
04921
- 28 -
- 29 -
21,000
- 30 -
21,000
21,000
21,000
- 31 -
21,000
Rental Real Estate Income and Expenses of a
Partnership or an S Corporation
WESTCHESTER DEVELOPMENT, LLC
00-0000000
321 Sunview Terrace,
Memphis, TN 04951
1
365
0
28,600
350
300
550
2,900
2,100
200
1,200
7,600
21,000
28,600
7,600
21,000
ISA
- 32 -
Depreciation and Amortization
Form
OMB No. 1545-0172
14
(Including Information on Listed Property)
Department of the Treasury
Internal Revenue Service (99)
Attach to your tax return.
Information about Form 4562 and its separate instructions is at www.irs.gov/ form4562.
Name(s) shown on return
Identifying number
Business or activity to which this form relates
WESTCHESTER DEVELOPMENT, LLC
321 SUNVIEW TERRACE
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1
2
3
4
5
Maximum amount (see instructions) . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see instructions) . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If
separately, see instructions . . . . . . . . . . . . . . . . . . . .
6
(a) Description of property
(b) Cost (business use only)
00-0000000
. . .
. . .
. . .
. . .
married
. . .
. .
. .
. .
. .
filing
. .
(c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
.
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . .
10 Carryover of disallowed deduction from line 13 of your 2013 Form 4562 . . . . . .
11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11
13 Carryover of disallowed deduction to 2015. Add lines 9 and 10, less line 12
13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
Part II
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1
2
3
4
5
8
9
10
11
12
Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . .
15 Property subject to section 168(f)(1) election .
16 Other depreciation (including ACRS) . . .
Part III
Attachment
Sequence No. 179
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
MACRS Depreciation (Do not include listed property.) (See instructions.)
.
.
.
.
.
.
.
.
.
.
14
15
16
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2014 . . . . . . .
17
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . .
Section B—Assets Placed in Service During 2014 Tax Year Using the General Depreciation System
(a) Classification of property
19a
b
c
d
e
f
g
h
3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
Residential rental
property
i Nonresidential real
property
2,800
(d) Recovery
period
(e) Convention
(f) Method
7.0
HY
S/L
1,000
(g) Depreciation deduction
200
Section C—Assets Placed in Service During 2014 Tax Year Using the Alternative Depreciation System
S/L
20a Class life
1 2 yrs.
S/L
b 12-year
4 0 yrs.
MM
S/L
c 40-year
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions .
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs
. . . . . . .
23
For Paperwork Reduction Act Notice, see separate instructions.
21
22
1,200
Form
ISA
- 33 -
4562 (2014)
CREATIVE NETWORK DESIGN SYSTEMS
00-0000000
42000 N. EXECUTIVE DR.
09/01/2004
JACKSON, TN
101,000
04900
210,000
210,000
210,000
210,000
146,000
8,000
24,000
2,000
10,000
4,000
8,000
202,000
8,000
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 34 -
00-0000000
04921
- 35 -
8,000
- 36 -
8,000
3,000
2,000
9,716
5,000
9,716
5,000
132,000
44,000
- 37 -
88,000
132,284
44,000
88,284
95,000
101,000
12,000
2,000
50,000
31,000
17,000
2,000
50,000
32,000
95,000
101,000
6,000
2,000
NONE
8,000
2,000
8,000
31,000
8,000
2,000
37,000
5,000
32,000
- 38 -
NONE
NONE
NONE
NONE
NONE
OMB No. 1545-0123
Form
For calendar year 2014 or tax year beginning
A Check if:
1a Consolidated return
(see instructions) .
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29a
b
c
30
31
32
33
34
35
36
Sign
Here
INTERIOR INNOVATIONS, INCORPORATED
00-0000000
TYPE
Number, street, and room or suite no. If a P.O. box, see instructions.
OR
1000
HEAVEN'S WAY
PRINT
.
4 Schedule M-3 attached
C Date incorporated
01/31/2003
D Total assets (see instructions)
City or town, state, or province, country and ZIP or foreign postal code
$
JACKSON, TN 04900
E Check if: (1)
, 20
B Employer identification number
Name
(attach Form 851)
.
b Life/nonlife consolidated return .
.
.
2 Personal holding co.
(attach Sch. PH) .
.
3 Personal service corp.
, 2014, ending
Initial return
(2)
(3)
Final return
Name change
(4)
259,736
Address change
534,000
Gross receipts or sales . . . . . . . . . . . . . . . . .
1a
Returns and allowances . . . . . . . . . . . . . . . . .
1b
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . .
1c
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . .
2
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . .
3
Dividends (Schedule C, line 19)
. . . . . . . . . . . . . . . . . . . . . .
4
Interest
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . .
8
. . . . . . . . . . .
9
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach statement) . . . . . . . . . . . . . . . . .
10
11
Total income. Add lines 3 through 10 . . . . . . . . . . . . . . . . . . . . .
12
Compensation of officers (see instructions—attach Form 1125-E)
. . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . .
13
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . .
14
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Interest
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . .
19
Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . .
20
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Advertising
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Pension, profit-sharing, etc., plans
. . . . . . . . . . . . . . . . . . . . .
23
Employee benefit programs
. . . . . . . . . . . . . . . . . . . . . . .
24
Domestic production activities deduction (attach Form 8903) . . . . . . . . . . . . . .
25
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . .
26
27
Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . .
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11.
28
Net operating loss deduction (see instructions) . . . . . . . . . .
29a
Special deductions (Schedule C, line 20) . . . . . . . . . . . .
29b
Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . .
29c
Taxable income. Subtract line 29c from line 28 (see instructions) . . . . . . . . . . . .
30
31
Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . . . . . .
32
Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . . . . . .
. . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached
Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed
. . . . .
34
Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid . . . . .
35
Refunded
36
Enter amount from line 35 you want: Credited to 2015 estimated tax
534,000
390,000
144,000
144,000
54,000
40,000
1,000
1,200
7,200
100
7,000
1,000
3,000
1,800
1,700
118,000
26,000
26,000
3,900
2,400
NONE
1,500
NONE
NONE
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Signature of officer
Paid
Preparer
Use Only
Date
Print/Type preparer’s name
Firm’s name
Firm's address
May the IRS discuss this return
with the preparer shown below
(see instructions)?
Yes
No
Title
Preparer's signature
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
For Paperwork Reduction Act Notice, see separate instructions.
Date
Firm's EIN
04921
00-0000000
Phone no.
Form
ISA
- 39 -
1120 (2014)
Page 2
Form 1120 (2014)
Schedule C
Dividends and Special Deductions (see instructions)
(a) Dividends
received
1
Dividends from less-than-20% -owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
2
Dividends from 20% -or-more-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
3
Dividends on debt-financed stock of domestic and foreign corporations .
.
.
.
.
4
Dividends on certain preferred stock of less-than-20%-owned public utilities
.
.
.
5
Dividends on certain preferred stock of 20%-or-more-owned public utilities .
.
.
.
6
Dividends from less-than-20% -owned foreign corporations and certain FSCs
.
.
.
7
Dividends from 20% -or-more-owned foreign corporations and certain FSCs
.
.
.
8
Dividends from wholly owned foreign subsidiaries
9
Total. Add lines 1 through 8. See instructions for limitation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . . . .
11
Dividends from affiliated group members .
.
.
.
.
.
.
.
.
.
.
.
.
.
12
Dividends from certain FSCs
.
.
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.
.
.
.
.
.
.
.
13
Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12
.
.
.
14
Income from controlled foreign corporations under subpart F (attach Form(s) 5471)
15
Foreign dividend gross-up
.
.
.
.
.
.
.
16
IC-DISC and former DISC dividends not included on lines 1, 2, or 3
.
.
.
.
.
.
17
Other dividends
.
.
.
.
.
.
18
Deduction for dividends paid on certain preferred stock of public utilities
.
.
.
.
19
Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 .
.
.
20
Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b .
.
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.
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(b) %
(c) Special deductions
(a) × (b)
.
.
.
.
.
.
.
Form
- 40 -
1120 (2014)
Page 3
Form 1120 (2014)
Schedule J
Tax Computation and Payment (see instructions)
Part I–Tax Computation
1
2
3
4
5a
b
c
d
e
6
7
8
9a
b
Check if the corporation is a member of a controlled group (attach Schedule O (Form
Income tax. Check if a qualified personal service corporation (see instructions) . .
Alternative minimum tax (attach Form 4626) . . . . . . . . . . . .
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . .
Credit from Form 8834 (see instructions) . . . . . . . . . . . . .
General business credit (attach Form 3800) . . . . . . . . . . . .
Credit for prior year minimum tax (attach Form 8827) . . . . . . . . .
Bond credits from Form 8912 . . . . . . . . . . . . . . . .
Total credits. Add lines 5a through 5e . . . . . . . . . . . . .
Subtract line 6 from line 4 . . . . . . . . . . . . . . . . .
Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . .
Recapture of investment credit (attach Form 4255) . . . . . . . . . .
Recapture of low-income housing credit (attach Form 8611) . . . . . . .
c
Interest due under the look-back method—completed long-term contracts (attach
Form 8697) . . . . . . . . . . . . . . . . . . . . . .
d
e
f
10
11
Interest due under the look-back method—income forecast method
8866) . . . . . . . . . . . . . . . . . . .
Alternative tax on qualifying shipping activities (attach Form 8902)
.
Other (see instructions—attach statement) . . . . . . . .
Total. Add lines 9a through 9f . . . . . . . . . . . .
Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 .
12
13
14
15
16
17
18
19
a
b
c
d
20
21
2013 overpayment credited to 2014 . . .
2014 estimated tax payments . . . . .
2014 refund applied for on Form 4466 . . .
Combine lines 12, 13, and 14 . . . . .
Tax deposited with Form 7004 . . . . .
Withholding (see instructions) . . . . .
Total payments. Add lines 15, 16, and 17 . .
Refundable credits from:
Form 2439 . . . . . . . . . . .
Form 4136 . . . . . . . . . . .
Form 8827, line 8c
. . . . . . . .
Other (attach statement—see instructions). .
Total credits. Add lines 19a through 19d . .
Total payments and credits. Add lines 18 and
Part II–Payments and Refundable Credits
Schedule K
Check accounting method: a
Cash
See the instructions and enter the:
Business activity code no.
5700
Business activity
RETAIL TRADE
Product or service
FURNITURE
4
At the end of the tax year:
b
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
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.
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.
.
.
.
.
.
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.
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.
.
.
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.
.
2
3
4
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
8
3,900
Form
9d
. .
. .
9e
. .
9f
. . . . .
. . . . .
.
.
.
.
.
.
.
.
.
.
10
11
0
3,900
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
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.
.
.
.
.
.
.
.
.
.
12
13
14 (
15
16
17
18
19a
19b
19c
19d
. .
. .
.
.
.
.
.
.
.
.
.
.
20
21
.
.
.
.
.
.
.
b
Accrual
c
3,900
3,900
9c
.
.
.
.
.
.
.
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . .
. . . . . . . . . . . .
20. Enter here and on page 1, line 32 .
Other Information (see instructions)
1
2
a
b
c
3
a
.
.
.
.
.
.
.
(attach
. .
. .
. .
. .
. .
1120))
. .
. .
. .
5a
5b
5c
5d
5e
. .
. .
. .
9a
9b
.
.
.
.
.
.
.
2,400
)
2,400
2,400
2,400
Other (specify)
Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group?
If “Yes,” enter name and EIN of the parent corporation
Yes
.
.
.
.
.
.
.
.
.
.
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation’s stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . .
Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation’s stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) .
Form
- 41 -
No
X
X
X
1120 (2014)
Page 4
Form 1120 (2014)
Schedule K
5
Other Information
(see instructions)
Yes
No
At the end of the tax year, did the corporation:
a
X
If “Yes,” complete (i) through (iv) below.
(ii) Employer
Identification Number
(if any)
(i) Name of Corporation
(iv) Percentage
Owned in Voting
Stock
(iii) Country of
Incorporation
b
X
If “Yes,” complete (i) through (iv) below.
(ii) Employer
Identification Number
(if any)
(i) Name of Entity
6
7
(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital
(iii) Country of
Organization
During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
excess of the corporation’s current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . .
If "Yes," file Form 5452, Corporate Report of Nondividend Distributions.
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all
classes of the corporation’s stock entitled to vote or (b) the total value of all classes of the corporation’s stock?
. . . .
X
X
For rules of attribution, see section 318. If “ Yes,” enter:
(i) Percentage owned
and (ii) Owner’s country
8
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . .
9
10
Enter the amount of tax-exempt interest received or accrued during the tax year
Enter the number of shareholders at the end of the tax year (if 100 or fewer)
11
If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here
$
.
.
.
.
.
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached
or the election will not be valid.
12
13
Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the
tax year less than $250,000?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
X
If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions
$
and the book value of property distributions (other than cash) made during the tax year
14
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)?
.
.
.
.
.
.
.
.
.
.
.
.
X
If “Yes,” complete and attach Schedule UTP.
15a
b
Did the corporation make any payments in 2014 that would require it to file Form(s) 1099?
If “Yes,” did or will the corporation file required Forms 1099? . . . . . . . . .
16
During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its
own stock?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
X
17
During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)
of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . .
X
18
Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair
market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Form
- 42 -
X
X
X
1120 (2014)
Page 5
Form 1120 (2014)
Balance Sheets per Books
Beginning of tax year
(a)
(b)
Assets
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash
. . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts . . .
Inventories . . . . . . . . .
U.S. government obligations
. . .
Tax-exempt securities (see instructions)
Other current assets (attach statement)
Loans to shareholders . . . . .
Mortgage and real estate loans . . .
Other investments (attach statement) .
Buildings and other depreciable assets
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of any amortization) . . .
Intangible assets (amortizable only)
.
Less accumulated amortization . . .
Other assets (attach statement) . . .
Total assets . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
End of tax year
(c)
(d)
29,227
40,000
(
95,327
NONE )
96,000
15,000 )
95,327 (
40,000
81,000
50,000
15,000
3,000
15,000
3,000
(
18,854
5,345 )
13,509 (
72,854
11,345 )
(
)
(
)
(
600
500 )
100 (
600
600 )
61,509
20,000
NONE
NONE
206,936
259,736
10,000
15,000
10,663
52,863
Liabilities and Shareholders’ Equity
16
17
18
19
20
21
22
Accounts payable .
.
.
.
.
.
.
.
.
Other current liabilities (attach statement) .
Loans from shareholders . . . . . .
.
.
Other liabilities (attach statement)
Capital stock: a Preferred stock
b Common stock
Additional paid-in capital . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Retained earnings—Unappropriated
.
.
.
Less cost of treasury stock . . . .
Total liabilities and shareholders’ equity
.
.
.
.
1
2
3
Net income (loss) per books . . . . .
Federal income tax per books . . . .
Excess of capital losses over capital gains
.
.
.
4
Income subject to tax not recorded on books
this year (itemize):
5
Expenses recorded on books this year not
deducted on this return (itemize):
Depreciation . . . . $
Charitable contributions . $
400
Travel and entertainment . $
23
24
25
26
27
28
30,000
30,000
30,000
30,000
161,873
156,273
(
)
(
)
259,736
206,936
Note:
5,600
6,000
7
Income recorded on books this year
not included on this return (itemize):
Tax-exempt interest $
8
a
b
c
SEE STATEMENT 1
15,000
6
Add lines 1 through 5 .
.
.
.
.
.
.
1
2
3
Balance at beginning of year
Net income (loss) per books .
Other increases (itemize):
.
.
.
.
.
.
.
.
.
.
4
Add lines 1, 2, and 3 .
.
.
.
.
.
.
.
.
.
$
$
Add lines 7 and 8 .
.
a Depreciation
b
15,400 9
27,000 10
156,273
5,600
161,873
5
6
7
8
.
1,000
.
.
.
.
Distributions: a Cash
.
b Stock .
c Property
Other decreases (itemize):
.
.
.
.
.
.
.
.
.
Add lines 5 and 6 .
.
.
.
.
.
1,000
1,000
26,000
Form
- 43 -
161,873
1120 (2014)
Form 1120, Page 1 Detail
Line 26 – Other deductions
Amortization
100
Travel and entertainment
400
Lodging
1,200
Total
1,700
Form 1120, Page 5 Detail
Sch M-1, Line 5 – Expenses on books not deducted on return
Bad Debts
15,000
Total
15,000
STATEMENT 1
- 44 -
Compensation of Officers
INTERIOR INNOVATIONS, INCORPORATED
GINNY BORROWER
00-0000000
000-00-0001
100
100
54,000
54,000
54,000
ISA
- 45 -
Form
W-2
Wage and Tax Statement
2013
G Keep for your records
Name
Social Security Number
Ginny Borrower
000-00-0001
X Spouseʼs W-2
Military: Complete Part VI on Page 2 below
Do not transfer this W-2 to next year
a Employeeʼs social security No 000-00-0001
b Employerʼs ID number
00-0000000
c Employerʼs name, address, and ZIP code
1 Wages, tips, other
2 Federal income
compensation
30,000.00
tax withheld
5,000.00
Interior Innovations, Incorporated
3 Social security wages
4 Social security tax withheld
Street
1000 Heaven's
City
Jackson
State
TN
ZIP Code
Foreign Country
Way
5 Medicare wages and tips
6 Medicare tax withheld
04900
7 Social security tips
8 Allocated tips
33,000.00
9
d Control number
the Federal Information Worksheet
e Employeeʼs name
First Ginny
Last Borrower
f Employeeʼs address and ZIP code
Street 3412 W Silverwood Dr
City Jackson
State TN
ZIP Code 04953
Foreign Country
Amount
D
3,000.00
Box 15
State
13
Suff.
Distributions from sect. 457
and nonqualified plans
(Important, see Help)
Statutory employee
Retirement plan
Third-party sick pay
14 Enter box 14 below after entering boxes 18, 19, and 20.
NOTE: Enter box 15 before entering box 14.
If Box 12 code is:
A: Enter amount attributable to RRTA Tier 2 tax
M: Enter amount attributable to RRTA Tier 2 tax
P: Double click to link to Form 3903, line 4
R: Enter MSA contribution for Taxpayer
Spouse
W: Enter HSA contribution for Taxpayer
Spouse
G:
Employer is not a state or local government
Box 16
Employerʼs state I.D. no.
Box 20
State wages, tips, etc.
Box 18
Locality name
Local wages, tips, etc.
Box 14
Description or Code
on Actual Form W-2
478.50
10 Dependent care benefits
12 Enter box 12 below
M.I.
Box 12
Code
1,386.00
2,046.
11 Nonqualified plans
X Transfer employee information from
Box 12
33,000.00
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
TurboTax Identification of Description or Code
(Identify this item by selecting the identification from
the drop down list. If not on the list, select Other).
- 47 -
Form
W-2
Wage and Tax Statement
2013
G Keep for your records
Name
Social Security Number
Ginny Borrower
000-00-0001
X Spouseʼs W-2
Military: Complete Part VI on Page 2 below
Do not transfer this W-2 to next year
a Employeeʼs social security No 000-00-0001
b Employerʼs ID number
00-0000000
c Employerʼs name, address, and ZIP code
1 Wages, tips, other
2 Federal income
compensation
10,000.00
tax withheld
1,500.00
Creative Greetings Cards
3 Social security wages
4 Social security tax withheld
Street
1101 Commerce
City
Jackson
State
TN
ZIP Code
Foreign Country
Dr
5 Medicare wages and tips
6 Medicare tax withheld
04953
7 Social security tips
8 Allocated tips
11,000.00
11,000.00
9
d Control number
the Federal Information Worksheet
e Employeeʼs name
Box 12
Amount
D
1,000.00
Box 15
State
13
Suff.
Box 12
Code
Statutory employee
Retirement plan
Third-party sick pay
14 Enter box 14 below after entering boxes 18, 19, and 20.
NOTE: Enter box 15 before entering box 14.
If Box 12 code is:
A: Enter amount attributable to RRTA Tier 2 tax
M: Enter amount attributable to RRTA Tier 2 tax
P: Double click to link to Form 3903, line 4
R: Enter MSA contribution for Taxpayer
Spouse
W: Enter HSA contribution for Taxpayer
Spouse
G:
Employer is not a state or local government
Box 16
Employerʼs state I.D. no.
Box 20
State wages, tips, etc.
Box 18
Locality name
Local wages, tips, etc.
Box 14
Description or Code
on Actual Form W-2
Distributions from sect. 457
and nonqualified plans
(Important, see Help)
12 Enter box 12 below
M.I.
160.00
10 Dependent care benefits
11 Nonqualified plans
X Transfer employee information from
First Ginny
Last Borrower
f Employeeʼs address and ZIP code
Street 3412 W Silverwood Dr
City Jackson
State TN
ZIP Code 04953
Foreign Country
462.00
682.
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
TurboTax Identification of Description or Code
(Identify this item by selecting the identification from
the drop down list. If not on the list, select Other).
- 48 -
Form
1040
2013
(99)
Department of the Treasury—Internal Revenue Service
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2013, or other tax year beginning
OMB No. 1545-0074
, 2013, ending
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
Last name
Your first name and initial
000-00-0000
Borrower
John
Spouse’s social security number
Last name
If a joint return, spouse’s first name and initial
Borrower
Ginny
000-00-0001
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
▲
3412 W Silverwood Dr
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Jackson TN 04953
Foreign country name
Filing Status
Check only one
box.
Exemptions
1
4
c
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. ▶
Married filing separately. Enter spouse’s SSN above
and full name here. ▶
6a
b
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
Single
Married filing jointly (even if only one had income)
2
3
5
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) ✓ if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
If you did not
get a W-2,
see instructions.
Adjusted
Gross
Income
2
Dependents on 6c
not entered above
d
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here ▶
Income
Make sure the SSN(s) above
and on line 6c are correct.
Total number of exemptions claimed
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
.
8b
. .
.
.
.
.
.
.
.
8a
40,000.
2,000.
.
.
.
.
.
.
.
9a
3,500.
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
Health savings account deduction. Attach Form 8889
.
26
Moving expenses. Attach Form 3903 .
.
27
28
29
Deductible part of self-employment tax. Attach Schedule SE .
Wages, salaries, tips, etc. Attach Form(s) W-2
.
.
.
.
8a
b
9a
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
b
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Self-employed SEP, SIMPLE, and qualified plans
Self-employed health insurance deduction
. .
.
.
.
.
30
31a
32
Penalty on early withdrawal of savings .
.
.
.
.
.
Alimony paid b Recipient’s SSN
IRA deduction . . . . . .
.
.
.
.
.
.
.
33
34
35
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
.
.
.
.
.
.
.
.
.
.
.
.
36
37
. . . . . .
. . . . . .
b Taxable amount
▶
.
.
.
.
.
.
▶
21,350.
21
22
74,850.
24
25
26
27
28
3,250.
29
30
31a
32
33
34
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA
- 49 -
.
.
.
.
10,000.
-2,000.
23
.
.
3,500.
.
2
.
7
.
Add numbers on
lines above ▶
.
.
.
.
.
.
▶
36
37
REV 06/04/14 TTW
Form
3,250.
71,600.
1040 (2013)
Page 2
71,600.
Form 1040 (2013)
Tax and
Credits
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$6,100
Married filing
jointly or
Qualifying
widow(er),
$12,200
Head of
household,
$8,950
Other
Taxes
38
Amount from line 37 (adjusted gross income)
39a
Check
if:
If you have a
qualifying
child, attach
Schedule EIC.
Refund
Sign
Here
Paid
Preparer
Use Only
.
You were born before January 2, 1949,
Spouse was born before January 2, 1949,
.
.
Blind.
Blind.
.
}
.
.
.
.
.
38
.
Total boxes
checked ▶ 39a
39b
.
.
42
43
Exemptions. If line 38 is $150,000 or less, multiply $3,900 by the number on line 6d. Otherwise, see instructions
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
Tax (see instructions). Check if any from: a
Form(s) 8814 b
44
45
46
Alternative minimum tax (see instructions). Attach Form 6251 .
Add lines 44 and 45 . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
b
.
. .
8919
.
.
.
.
Foreign tax credit. Attach Form 1116 if required .
Credit for child and dependent care expenses. Attach Form 2441
47
48
49
50
51
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
49
50
51
52
53
54
55
Residential energy credits. Attach Form 5695 . . . .
52
3800 b
8801 c
Other credits from Form: a
53
Add lines 47 through 53. These are your total credits . . . . .
Subtract line 54 from line 46. If line 54 is more than line 46, enter -0-
56
57
Self-employment tax. Attach Schedule SE . . . .
Unreported social security and Medicare tax from Form:
58
59a
b
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
Household employment taxes from Schedule H
.
.
.
. . . .
a
4137
.
.
.
.
.
First-time homebuyer credit repayment. Attach Form 5405 if required . . . .
Form 8959 b
Form 8960 c
Instructions; enter code(s)
Taxes from: a
.
.
.
.
Add lines 55 through 60. This is your total tax
.
.
.
.
.
.
.
.
.
.
.
62
63
Federal income tax withheld from Forms W-2 and 1099 . .
2013 estimated tax payments and amount applied from 2012 return
64a
b
Earned income credit (EIC) . . . . . .
Nontaxable combat pay election
64b
Additional child tax credit. Attach Schedule 8812 .
65
66
.
.
.
.
.
.
.
.
.
.
.
.
.
62
63
64a
44
45
46
6,191.
55
56
57
58
59a
59b
▶
6,500.
1,000.
60
61
6,191.
65
66
.
.
.
.
67
68
American opportunity credit from Form 8863, line 8 .
Reserved . . . . . . . . . . . . .
Amount paid with request for extension to file . .
.
.
.
.
.
.
.
.
.
69
70
71
72
Excess social security and tier 1 RRTA tax withheld . . . .
69
Credit for federal tax on fuels. Attach Form 4136 . . . .
70
Credits from Form: a
2439 b
Reserved c
8885 d
71
Add lines 62, 63, 64a, and 65 through 71. These are your total payments .
73
If line 72 is more than line 61, subtract line 61 from line 72. This is the amount you overpaid
74a
b
d
Amount of line 73 you want refunded to you. If Form 8888 is attached, check here . ▶
Routing number
Checking
Savings
X X X X X X X X X ▶ c Type:
Account number
X X X X X X X X X X X X X X X X X
Amount of line 73 you want applied to your 2014 estimated tax ▶ 75
Amount you owe. Subtract line 72 from line 61. For details on how to pay, see instructions ▶
75
76
6,191.
54
▶
.
.
43
▶
.
.
13,068.
58,532.
7,800.
50,732.
6,191.
40
41
42
.
.
.
.
47
48
67
68
0.
.
.
.
.
77
Estimated tax penalty (see instructions) . . . . . . .
Do you want to allow another person to discuss this return with the IRS (see instructions)?
7,500.
1,309.
1,309.
72
73
▶
74a
76
77
Designee’s
name ▶
Phone
no. ▶
Yes. Complete below.
No
Personal identification
▶
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
▲
Joint return? See
instructions.
Keep a copy for
your records.
.
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
▶
Third Party
Designee
.
If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶
b
Direct deposit?
See
▶
instructions.
Amount
You Owe
.
40
41
60
61
Payments
{
.
Spouse’s signature. If a joint return, both must sign.
Print/Type preparer’s name
Firm’s name
▶
Your occupation
Daytime phone number
Self-Employed
Date
Spouse’s occupation
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Self-Employed
Preparer’s signature
Date
Self-Prepared
Firm's EIN
Firm’s address ▶
▶
Phone no.
REV 06/04/14 TTW
- 50 -
Form 1040 (2013)
SCHEDULE A
(Form 1040)
OMB No. 1545-0074
Itemized Deductions
Department of the Treasury
Internal Revenue Service (99)
a Information
about Schedule A and its separate instructions is at www.irs.gov/schedulea.
a Attach to Form 1040.
Name(s) shown on Form 1040
John & Ginny Borrower
Medical
and
Dental
Expenses
Taxes You
Paid
1
2
3
4
5
6
7
8
Interest
You Paid
Note.
Your mortgage
interest
deduction may
be limited (see
instructions).
Caution. Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see instructions) . . . . .
71,600.
Enter amount from Form 1040, line 38
2
Multiply line 2 by 10% (.10). But if either you or your spouse was
born before January 2, 1949, multiply line 2 by 7.5% (.075) instead
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- .
State and local (check only one box):
a
Income taxes, or
. . . . . . . . . . .
b
General sales taxes
Real estate taxes (see instructions) . . . . . . . . .
Personal property taxes . . . . . . . . . . . . .
Other taxes. List type and amount a
}
2013
Attachment
Sequence No. 07
Your social security number
000-00-0000
587.
1
3
.
7,160.
.
.
.
.
.
.
5
3,000.
6
7
1,500.
8
9 Add lines 5 through 8 . . . . . . . . . . . . . . . .
10 Home mortgage interest and points reported to you on Form 1098 10
11 Home mortgage interest not reported to you on Form 1098. If paid
to the person from whom you bought the home, see instructions
and show that person’s name, identifying no., and address a
11
12 Points not reported to you on Form 1098. See instructions for
special rules . . . . . . . . . . . . . . . . .
12
13 Mortgage insurance premiums (see instructions) . . . . .
13
14 Investment interest. Attach Form 4952 if required. (See instructions.) 14
15 Add lines 10 through 14 . . . . . . . . . . . . . . .
Gifts to
16 Gifts by cash or check. If you made any gift of $250 or more,
see instructions . . . . . . . . . . . . . . . .
16
Charity
17 Other than by cash or check. If any gift of $250 or more, see
If you made a
gift and got a
instructions. You must attach Form 8283 if over $500 . . .
17
benefit for it,
18 Carryover from prior year . . . . . . . . . . . .
18
see instructions.
19 Add lines 16 through 18 . . . . . . . . . . . . . . .
4
0.
.
.
.
.
.
.
9
4,500.
.
.
.
.
.
.
15
5,000.
19
1,000.
27
2,568.
5,000.
1,000.
.
.
.
.
.
.
Casualty and
Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . .
20
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues,
and Certain
job education, etc. Attach Form 2106 or 2106-EZ if required.
Miscellaneous
4,000.
21
(See instructions.) a Deductible expenses from Form 2106
Deductions
22 Tax preparation fees . . . . . . . . . . . . .
22
23 Other expenses—investment, safe deposit box, etc. List type
and amount a
Other
Miscellaneous
Deductions
24
25
26
27
28
23
Add lines 21 through 23 . . . . . . . . . . . .
24
71,600.
Enter amount from Form 1040, line 38 25
Multiply line 25 by 2% (.02) . . . . . . . . . . .
26
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- .
Other—from list in instructions. List type and amount a
4,000.
.
.
.
1,432.
.
.
28
Total
29 Is Form 1040, line 38, over $150,000?
Itemized
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
Deductions
}
.
Yes. Your deduction may be limited. See the Itemized Deductions
Worksheet in the instructions to figure the amount to enter.
30 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . a
For Paperwork Reduction Act Notice, see Form 1040 instructions. BAA
- 51 -
REV 03/03/14 TTW
.
29
13,068.
Schedule A (Form 1040) 2013
Form
2106
Department of the Treasury
Internal Revenue Service (99)
Employee Business Expenses
2013
▶ Attach to Form 1040 or Form 1040NR.
Attachment
Sequence No.
Social security number
▶ Information about Form 2106 and its separate instructions is available at www.irs.gov/form2106.
Your name
Occupation in which you incurred expenses
Ginny Borrower
Part I
OMB No. 1545-0074
Sales Represenative
129
000-00-0001
Employee Business Expenses and Reimbursements
Column A
Other Than Meals
and Entertainment
Step 1 Enter Your Expenses
1 Vehicle expense from line 22 or line 29. (Rural mail carriers: See
instructions.) . . . . . . . . . . . . . . . . . .
2 Parking fees, tolls, and transportation, including train, bus, etc., that
did not involve overnight travel or commuting to and from work .
3 Travel expense while away from home overnight, including lodging,
airplane, car rental, etc. Do not include meals and entertainment .
4 Business expenses not included on lines 1 through 3. Do not include
meals and entertainment . . . . . . . . . . . . . .
5 Meals and entertainment expenses (see instructions) . . . . .
6 Total expenses. In Column A, add lines 1 through 4 and enter the
result. In Column B, enter the amount from line 5 . . . . . .
1
1,950.
2
50.
3
1,400.
Column B
Meals and
Entertainment
4
1,200.
5
3,400.
6
1,200.
Note: If you were not reimbursed for any expenses in Step 1, skip line 7 and enter the amount from line 6 on line 8.
Step 2 Enter Reimbursements Received From Your Employer for Expenses Listed in Step 1
7 Enter reimbursements received from your employer that were not
reported to you in box 1 of Form W-2. Include any reimbursements
reported under code “L” in box 12 of your Form W-2 (see
instructions) . . . . . . . . . . . . . . . . . . .
7
Step 3 Figure Expenses To Deduct on Schedule A (Form 1040 or Form 1040NR)
8 Subtract line 7 from line 6. If zero or less, enter -0-. However, if line 7
is greater than line 6 in Column A, report the excess as income on
Form 1040, line 7 (or on Form 1040NR, line 8) . . . . . . .
3,400.
1,200.
3,400.
9
10 Add the amounts on line 9 of both columns and enter the total here. Also, enter the total on
Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 7). (Armed Forces
reservists, qualified performing artists, fee-basis state or local government officials, and individuals
with disabilities: See the instructions for special rules on where to enter the total.) . . . . . ▶
600.
8
Note: If both columns of line 8 are zero, you cannot deduct
employee business expenses. Stop here and attach Form 2106 to
your return.
9 In Column A, enter the amount from line 8. In Column B, multiply line
8 by 50% (.50). (Employees subject to Department of Transportation
(DOT) hours of service limits: Multiply meal expenses incurred while
away from home on business by 80% (.80) instead of 50%. For
details, see instructions.) . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
- 52 -
REV 03/03/14 TTW
10
4,000.
Form 2106 (2013)
Form 2106 (2013)
Part II
Page
Section A—General Information (You must complete this section if you
are claiming vehicle expenses.)
11
12
13
14
15
16
17
18
19
20
21
2
Vehicle Expenses
Enter the date the vehicle was placed in service . . . . . . . .
Total miles the vehicle was driven during 2013
. . . . . . . .
Business miles included on line 12 . . . . . . . . . . . .
Percent of business use. Divide line 13 by line 12 . . . . . . . .
Average daily roundtrip commuting distance . . . . . . . . .
Commuting miles included on line 12
. . . . . . . . . . .
Other miles. Add lines 13 and 16 and subtract the total from line 12
.
Was your vehicle available for personal use during off-duty hours? . .
Do you (or your spouse) have another vehicle available for personal use?
Do you have evidence to support your deduction? . . . . . . .
If “Yes,” is the evidence written? . . . . . . . . . . . . .
(a) Vehicle 1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
13
14
15
16
17
.
.
.
.
.
.
.
.
(b) Vehicle 2
06/15/2010
6,000 miles
3,451 miles
57.52 %
3 miles
1,000 miles
1,549 miles
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
Yes
Yes
Yes
miles
miles
%
miles
miles
miles
No
No
No
No
Section B—Standard Mileage Rate (See the instructions for Part II to find out whether to complete this section or Section C.)
1,950.
22
Multiply line 13 by 56.5¢ (.565). Enter the result here and on line 1 . . . . . . . . . .
22
Section C—Actual Expenses
(a) Vehicle 1
(b) Vehicle 2
23
Gasoline, oil, repairs, vehicle
insurance, etc. . . . . . .
24a
b
c
25
Vehicle rentals . . . . . .
Inclusion amount (see instructions) .
Subtract line 24b from line 24a .
Value of employer-provided vehicle
(applies only if 100% of annual
lease value was included on Form
W-2—see instructions) . . . .
26
27
Add lines 23, 24c, and 25. . .
Multiply line 26 by the percentage
on line 14 . . . . . . . .
28
29
Depreciation (see instructions) .
Add lines 27 and 28. Enter total
here and on line 1 . . . . .
23
24a
24b
24c
25
26
27
28
29
Section D—Depreciation of Vehicles (Use this section only if you owned the vehicle and are completing Section C for the vehicle.)
(a) Vehicle 1
30
Enter cost or other basis (see
instructions) . . . . . . .
30
31
Enter section 179 deduction and
special allowance (see instructions)
31
32
33
34
Multiply line 30 by line 14 (see
instructions if you claimed the
section 179 deduction or special
allowance). . . . . . . .
Enter depreciation method and
percentage (see instructions) .
Multiply line 32 by the percentage
on line 33 (see instructions) . .
35
36
Add lines 31 and 34 . . . .
Enter the applicable limit explained
in the line 36 instructions . . .
37
Multiply line 36 by the percentage
on line 14 . . . . . . . .
38
Enter the smaller of line 35 or line
37. If you skipped lines 36 and 37,
enter the amount from line 35.
Also enter this amount on line 28
above . . . . . . . . .
(b) Vehicle 2
32
33
34
35
36
37
38
REV 03/03/14 TTW
- 53 -
Form 2106 (2013)
SCHEDULE B
OMB No. 1545-0074
Interest and Ordinary Dividends
(Form 1040A or 1040)
Attach to Form 1040A or 1040.
Department of the Treasury
Internal Revenue Service (99) a Information about Schedule B (Form 1040A or 1040) and its instructions is at www.irs.gov/scheduleb.
a
Name(s) shown on return
John & Ginny Borrower
Part I
1
Interest
000-00-0000
Part II
Colonial Federal
2
3
Add the amounts on line 1 . . . . . . . . . .
Excludable interest on series EE and I U.S. savings
Attach Form 8815 . . . . . . . . . . . . .
4
Subtract line 3 from line 2. Enter the result here and
1040, line 8a . . . . . . . . . . . . . .
Note. If line 4 is over $1,500, you must complete Part III.
List name of payer a
5
IBM
. . . . . . . .
bonds issued after 1989.
. . . . . . . .
on Form 1040A, or Form
. . . . . . . . a
(See
instructions on
back.)
2,000.
2
3
4
2,000.
Amount
1,500.
500.
1,500.
Mobil Oil
Creative Network Design Systems
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 9a.)
Part III
Foreign
Accounts
and Trusts
2,000.
1
Ordinary
Dividends
Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
dividends shown
on that form.
Amount
List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see instructions on back and list
this interest first. Also, show that buyer’s social security number and address a
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 8a.)
Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.
2013
Attachment
Sequence No. 08
Your social security number
5
6
Add the amounts on line 5. Enter the total here and on Form 1040A, or Form
6
1040, line 9a . . . . . . . . . . . . . . . . . . . . . . a
Note. If line 6 is over $1,500, you must complete Part III.
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
3,500.
Yes No
7a
At any time during 2013, did you have a financial interest in or signature authority over a financial
account (such as a bank account, securities account, or brokerage account) located in a foreign
country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), formerly TD F 90-22.1, to report that financial interest or signature authority?
See FinCEN Form 114 and its instructions for filing requirements and exceptions to those
requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b If you are required to file FinCEN Form 114, enter the name of the foreign country where the
financial account is located a
8
During 2013, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
BAA
- 54 -
REV 03/03/14 TTW
Schedule B (Form 1040A or 1040) 2013
SCHEDULE C
(Form 1040)
Profit or Loss From Business
OMB No. 1545-0074
2013
(Sole Proprietorship)
a For
Department of the Treasury
Internal Revenue Service (99)
information on Schedule C and its instructions, go to www.irs.gov/schedulec.
to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.
Attachment
Sequence No. 09
a Attach
Name of proprietor
Social security number (SSN)
A
Principal business or profession, including product or service (see instructions)
B Enter code from instructions
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN), (see instr.)
E
Business address (including suite or room no.)
John Borrower
000-00-0000
Computer Repair Service
a
Up & Running
a
8 1 1 4 9 0
1400 W Commercial Ave
F
G
H
Jackson, TN 04953
City, town or post office, state, and ZIP code
Cash
(2)
Accrual
(3)
Other (specify) a
Accounting method:
(1)
Did you “materially participate” in the operation of this business during 2013? If “No,” see instructions for limit on losses
If you started or acquired this business during 2013, check here . . . . . . . . . . . . . . . . .
I
J
Did you make any payments in 2013 that would require you to file Form(s) 1099? (see instructions) .
If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . .
Part I
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Income
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Yes
No
Yes
Yes
No
No
a
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.
2
3
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . a
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
4
5
6
Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .
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4
5
6
7
Gross income. Add lines 5 and 6 .
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a
7
29,000.
200.
1
Part II
Expenses
8
Advertising .
9
Car and truck expenses (see
instructions) . . . . .
Commissions and fees .
10
11
12
13
.
.
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.
Contract labor (see instructions)
Depletion . . . . .
Depreciation and section 179
expense
deduction
(not
included in Part III) (see
instructions) . . . . .
14
Employee benefit programs
(other than on line 19) . .
Insurance (other than health)
15
16
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2
3
8
9
10
1,000.
Office expense (see instructions)
18
19
20
Pension and profit-sharing plans .
Rent or lease (see instructions):
Vehicles, machinery, and equipment
19
20a
Other business property . . .
Repairs and maintenance . . .
Supplies (not included in Part III) .
20b
21
22
Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .
23
24a
25
Deductible meals and
entertainment (see instructions) .
Utilities . . . . . . . .
24b
25
26
27a
b
Wages (less employment credits) .
Other expenses (from line 48) . .
Reserved for future use . . .
26
27a
27b
a
11
12
13
18
b
21
22
2,000.
23
24
a
14
15
b
500.
17
28
Total expenses before expenses for business use of home. Add lines 8 through 27a .
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a
28
29
30
Tentative profit or (loss). Subtract line 28 from line 7 .
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29
16a
16b
4,000.
300.
17
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.
. Use the Simplified
. . . . . . .
Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
32
2,000.
1,000.
1,500.
6,000.
500.
19,000.
10,000.
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business:
Method Worksheet in the instructions to figure the amount to enter on line 30
31
49,000.
20,000.
29,000.
Enter expenses for business use of your home only on line 30.
Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .
Legal and professional services
a
b
49,000.
1
If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and
on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and
trusts, enter on Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see the separate instructions.
BAA
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}
}
REV 03/03/14 TTW
30
31
32a
32b
10,000.
All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2013
Page 2
Schedule C (Form 1040) 2013
Part III
Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory:
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
Yes
.
No
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
35,000.
36
Purchases less cost of items withdrawn for personal use
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36
10,000.
37
Cost of labor. Do not include any amounts paid to yourself .
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37
38
Materials and supplies
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38
39
Other costs .
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39
40
Add lines 35 through 39 .
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40
46,000.
41
Inventory at end of year .
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41
26,000.
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 .
Part IV
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.
1,000.
. . . . .
20,000.
42
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43
When did you place your vehicle in service for business purposes? (month, day, year)
44
Of the total number of miles you drove your vehicle during 2013, enter the number of miles you used your vehicle for:
a
a
b Commuting (see instructions)
Business
c Other
Yes
No
45
Was your vehicle available for personal use during off-duty hours?
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46
Do you (or your spouse) have another vehicle available for personal use?.
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Yes
No
47a
Do you have evidence to support your deduction?
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Yes
No
If “Yes,” is the evidence written?
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Yes
No
b
Part V
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Other Expenses. List below business expenses not included on lines 8–26 or line 30.
Dues
100.
Laundry
400.
48
Total other expenses. Enter here and on line 27a .
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REV 03/03/14 TTW
- 56 -
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48
500.
Schedule C (Form 1040) 2013
SCHEDULE D
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
a
2013
a Attach to Form 1040 or Form 1040NR.
Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
a Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
Attachment
Sequence No. 12
Your social security number
Name(s) shown on return
John & Ginny Borrower
Part I
OMB No. 1545-0074
Capital Gains and Losses
000-00-0000
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
2 Totals for all transactions reported on Form(s) 8949 with
Box B checked . . . . . . . . . . . . .
3 Totals for all transactions reported on Form(s) 8949 with
Box C checked . . . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
to gain or loss from
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with
10,000.
12,000.
Box D checked . . . . . . . . . . . . .
9 Totals for all transactions reported on Form(s) 8949 with
Box E checked . . . . . . . . . . . . .
10 Totals for all transactions reported on Form(s) 8949 with
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
11
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
12
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
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REV 03/03/14 TTW
-2,000.
14 (
15
)
-2,000.
Schedule D (Form 1040) 2013
Page 2
Schedule D (Form 1040) 2013
Part III
16
Summary
Combine lines 7 and 15 and enter the result
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16
-2,000.
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line
14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete
line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form
1040NR, line 14. Then go to line 22.
17
Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18
Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions
a
18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . a
19
20
.
.
Are lines 18 and 19 both zero or blank?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines
21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21
and 22 below.
21
If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or
• ($3,000), or if married filing separately, ($1,500)
}
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21 (
2,000. )
Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22
Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
REV 03/03/14 TTW
- 58 -
Schedule D (Form 1040) 2013
Attachment Sequence No. 12A
Form 8949 (2013)
Name(s) shown on return. (Name and SSN or taxpayer identification no. not required if shown on other side.)
John & Ginny Borrower
Page 2
Social security number or taxpayer identification number
000-00-0000
Most brokers issue their own substitute statement instead of using Form 1099-B. They also may provide basis information (usually your cost) to you on
the statement even if it is not reported to the IRS. Before you check Box D, E, or F below, determine whether you received any statement(s) and, if so,
the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later.
Part II
Long-Term. Transactions involving capital assets you held more than one year are long term. For short-term
transactions, see page 1.
Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a;
you are not required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
IBM
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
(c)
Date sold or
disposed
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
04/01/10 12/18/13
10000.00
12000.00
-2000.00
10000.00
12000.00
-2000.00
(b)
Date acquired
(Mo., day, yr.)
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 8b (if Box D above is checked), line 9 (if Box E
above is checked), or line 10 (if Box F above is checked) a
Note. If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949 (2013)
REV 03/03/14 TTW
- 59 -
SCHEDULE E
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Supplemental Income and Loss
OMB No. 1545-0074
(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Attach to Form 1040, 1040NR, or Form 1041.
a Information about Schedule E and its separate instructions is at www.irs.gov/schedulee.
a
2013
Attachment
Sequence No. 13
Your social security number
John & Ginny Borrower
Income or Loss From Rental Real Estate and Royalties
Part I
000-00-0000
Note. If you are in the business of renting personal property, use
Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.
A Did you make any payments in 2013 that would require you to file Form(s) 1099? (see instructions)
Yes
No
B If “Yes,” did you or will you file required Forms 1099?
Yes
No
1a Physical address of each property (street, city, state, ZIP code)
A
111 State Street Jackson TN 04953
B
229 N 9th St Jackson TN 04900
C
Fair Rental
Personal Use
2 For each rental real estate property listed
1b
Type of Property
QJV
above, report the number of fair rental and
Days
Days
(from list below)
personal use days. Check the QJV box
1
365
0
A
A
only if you meet the requirements to file as
a qualified joint venture. See instructions.
4
B
365
0
B
C
C
Type of Property:
1 Single Family Residence
3 Vacation/Short-Term Rental 5 Land
7 Self-Rental
2 Multi-Family Residence
4 Commercial
6 Royalties
8 Other (describe)
Income:
Properties:
A
B
C
6,000.
17,200.
3 Rents received . . . . . . . . . . . . .
3
4 Royalties received . . . . . . . . . . . .
4
Expenses:
5
Advertising . . . . . . . . . . . . . .
5
6
Auto and travel (see instructions) . . . . . . .
6
700.
100.
7
Cleaning and maintenance . . . . . . . . .
7
8
Commissions. . . . . . . . . . . . . .
8
9
Insurance . . . . . . . . . . . . . . .
9
300.
2,150.
10
Legal and other professional fees . . . . . . .
10
11
Management fees . . . . . . . . . . . .
11
4,500.
5,500.
12
Mortgage interest paid to banks, etc. (see instructions)
12
13
Other interest. . . . . . . . . . . . . .
13
14
Repairs. . . . . . . . . . . . . . . .
14
15
Supplies . . . . . . . . . . . . . . .
15
16
Taxes . . . . . . . . . . . . . . . .
16
1,000.
1,100.
2,000.
17
Utilities . . . . . . . . . . . . . . . .
17
2,000.
2,500.
18
Depreciation expense or depletion . . . . . . .
18
Other (list) a
19
19
20
Total expenses. Add lines 5 through 19 . . . . .
20
8,000.
13,850.
Subtract line 20 from line 3 (rents) and/or 4 (royalties). If
result is a (loss), see instructions to find out if you must
3,350.
-2,000.
file Form 6198 . . . . . . . . . . . . .
21
Deductible rental real estate loss after limitation, if any,
22
)(
2,000. ) (
on Form 8582 (see instructions) . . . . . . .
22 (
23,200.
23a Total of all amounts reported on line 3 for all rental properties
. . . .
23a
b Total of all amounts reported on line 4 for all royalty properties . . . .
23b
10,000.
c Total of all amounts reported on line 12 for all properties . . . . . .
23c
4,500.
d Total of all amounts reported on line 18 for all properties . . . . . .
23d
21,850.
e Total of all amounts reported on line 20 for all properties . . . . . .
23e
24
Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . .
24
25
Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 (
21
26
Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here.
If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line
17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . .
For Paperwork Reduction Act Notice, see the separate instructions.
BAA
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REV 03/03/14 TTW
26
)
3,350.
2,000. )
1,350.
Schedule E (Form 1040) 2013
Attachment Sequence No. 13
Page 2
Your social security number
Schedule E (Form 1040) 2013
Name(s) shown on return. Do not enter name and social security number if shown on other side.
John & Ginny Borrower
000-00-0000
Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
Income or Loss From Partnerships and S Corporations
Part II
Note. If you report a loss from an at-risk activity for which
any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 6198. See instructions.
27
Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year
unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If
Yes
No
you answered “Yes,” see instructions before completing this section.
28
(b) Enter P for
partnership; S
for S corporation
(a) Name
A Tanglewood Realty
Westchester Develpment,
LLCLLC
B Westchester
Development,
C Creative Network Design Systems
D
Passive Income and Loss
(f) Passive loss allowed
(attach Form 8582 if required)
A
B
C
D
29a
b
30
31
32
P
P
S
(g) Passive income
from Schedule K–1
(e) Check if
any amount is
not at risk
00-0000000
00-0000000
00-0000000
(h) Nonpassive loss
from Schedule K–1
(i) Section 179 expense
deduction from Form 4562
(j) Nonpassive income
from Schedule K–1
12,000.
2,000.
30,000.
Totals
12,000.
Totals
Add columns (g) and (j) of line 29a . . . . . . . . . . . . . . .
Add columns (f), (h), and (i) of line 29b . . . . . . . . . . . . .
Total partnership and S corporation income or (loss). Combine lines 30
result here and include in the total on line 41 below . . . . . . . . .
2,000.
. . .
. . .
and 31.
. . .
. .
. .
Enter
. .
.
.
the
.
Income or Loss From Estates and Trusts
33
30
31 (
(b) Employer
identification number
Passive Income and Loss
(c) Passive deduction or loss allowed
(attach Form 8582 if required)
Totals
Totals
Add columns (d) and (f) of line 34a .
Add columns (c) and (e) of line 34b
Total estate and trust income or
include in the total on line 41 below
Part IV
38
Nonpassive Income and Loss
(d) Passive income
from Schedule K–1
. .
. .
(loss).
. .
. . . . . . . .
. . . . . . . .
Combine lines 35 and
. . . . . . . .
(e) Deduction or loss
from Schedule K–1
. . . . .
. . . . .
36. Enter the
. . . . .
. .
. .
result
. .
. . .
. . .
here and
. . .
(f) Other income from
Schedule K–1
35
36 (
)
37
Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder
(a) Name
(b) Employer identification
number
(c) Excess inclusion from
Schedules Q, line 2c
(see instructions)
(d) Taxable income (net loss)
from Schedules Q, line 1b
Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below
Part V
32,000.
12,000. )
20,000.
32
(a) Name
A
B
39
(d) Employer
identification
number
Nonpassive Income and Loss
20,000.
10,000.
Part III
A
B
34a
b
35
36
37
(c) Check if
foreign
partnership
(e) Income from
Schedules Q, line 3b
39
Summary
40
41
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 a
42
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code
V; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . .
42
43
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you reported
anywhere on Form 1040 or Form 1040NR from all rental real estate activities
in which you materially participated under the passive activity loss rules . .
43
REV 03/03/14 TTW
- 61 -
40
41
21,350.
Schedule E (Form 1040) 2013
Form
8582
Department of the Treasury
Internal Revenue Service (99)
Passive Activity Loss Limitations
a See
OMB No. 1545-1008
separate instructions.
a Attach
to Form 1040 or Form 1041.
a Information about Form 8582 and its instructions is available at www.irs.gov/form8582.
2013
Attachment
Sequence No. 88
Identifying number
Name(s) shown on return
John & Ginny Borrower
Part I
2013 Passive Activity Loss
000-00-0000
Caution: Complete Worksheets 1, 2, and 3 before completing Part I.
Rental Real Estate Activities With Active Participation (For the definition of active
Special Allowance for Rental Real Estate Activities in the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
column (a)) . . . . . . . . . . . . . . . . . .
1a
b Activities with net loss (enter the amount from Worksheet 1, column
(b)) . . . . . . . . . . . . . . . . . . . . .
1b (
c Prior years unallowed losses (enter the amount from Worksheet 1,
1c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a (
b Prior year unallowed commercial revitalization deductions from
2b (
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
3a Activities with net income (enter the amount from Worksheet 3,
column (a)) . . . . . . . . . . . . . . . . . .
3a
b Activities with net loss (enter the amount from Worksheet 3, column
(b)) . . . . . . . . . . . . . . . . . . . . .
3b (
c Prior years unallowed losses (enter the amount from Worksheet 3,
3c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 3a, 3b, and 3c . . . . . . . . . . . . . . . .
participation, see
3,350.
2,000. )
)
.
.
.
.
.
1d
.
1,350.
)
)
.
.
.
.
.
.
2c (
)
30,000.
0. )
0. )
.
.
.
.
.
.
3d
30,000.
4
Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with
your return; all losses are allowed, including any prior year unallowed losses entered on line 1c,
31,350.
2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . .
4
If line 4 is a loss and:
• Line 1d is a loss, go to Part II.
• Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III.
• Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15.
Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete
Part II or Part III. Instead, go to line 15.
Part II
5
6
7
8
9
10
Note: Enter all numbers in Part II as positive amounts. See instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
6
Enter $150,000. If married filing separately, see instructions . .
Enter modified adjusted gross income, but not less than zero (see instructions)
7
Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9,
enter -0- on line 10. Otherwise, go to line 8.
Subtract line 7 from line 6 . . . . . . . . . . . . .
8
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see instructions
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III
11
12
13
14
5
9
10
0.
Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities
Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions.
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
11
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
12
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
13
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14
Part IV
15
16
Special Allowance for Rental Real Estate Activities With Active Participation
Total Losses Allowed
Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2013. Add lines 10, 14, and 15. See
instructions to find out how to report the losses on your tax return . . . . . . . . . . .
For Paperwork Reduction Act Notice, see instructions. BAA
REV 03/03/14 TTW
- 62 -
15
16
Form 8582 (2013)
Internal Revenue Service
year beginning
, 2014
(5,800)
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Guaranteed payments
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
7
Royalties
8
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28% ) gain (loss)
JOHN BORROWER
9c
Unrecaptured section 1250 gain
3412 SILVERWOOD DR
JACKSON
X General partner or LLC
G
000-00-0000
10
Net section 1231 gain (loss)
18
11
Other income (loss)
C
ending
, 20
See back of form and separate instructions.
A
Partnership’s employer identification number
Partnership’s name, address, city, state, and ZIP code
TANGLEWOOD REALTY
42 WILLOW BLVD
JACKSON
C
651113
((12,000)
12,000)
TN 04921
IRS Center where partnership filed return
00-0000000
D
Foreign transactions
2,000
00-0000000
B
16
Check if this is a publicly traded partnership (PTP)
2,000
2,000
TANGLEWOOD REALTY
42
BLVD number
E WILLOW
Partner’s identifying
JACKSON
000-00-0000
F
TN
04921
Partner’s name, address, city, state, and ZIP code
TN 04953
member
member-manager
JOHN
X BORROWER
H
Domestic partner
.
.
.
.
.
20
20
.
20
20
$
Partnership’s employer identification number
$
.
.
$ (
.
.
$
IRS Center where partnership filed return
X GAAP
Tax basis
41,300
2,400
(5,100)
)
50,000
TN 04921 38,600
2,400
(11,100)
41,300
X property with a built-in gain or loss?
Did the partner contribute
For Paperwork
Act Notice,
seeand
Instructions
Partner’s Reduction
name, address,
city, state,
ZIP code for Form 1065.
ISA F
X
3412 SILVERWOOD DR
JACKSON
X General partner or LLC
G
member-manager
STMT
Other information
Credits
A
16
Foreign transactions
(3,800)
Guaranteed payments
*See
attached
statement for additional information.
5
Interest
income
((10,000)
A
10,000)
6a
Ordinary dividends
6b
Qualified dividends
7
Royalties
8
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28% ) gain (loss)
Section 704(b) book
Other
Check(explain)
if this is a publicly traded partnership (PTP)
JOHN BORROWER
OMB No. 1545-0123
2,000
Beginning
capital
account
. city,
. state,
.
$ and ZIP code
Partnership’s
name,
address,
$
.
500
(5,800)
4
.
.
X No
Yes identifying number
E
Partner’s
If
“Yes,”
attach
statement
(see instructions)
000-00-0000
ISA
20
Recourse
.
Distributions
Amended K-1
Self-employment
earnings
(loss)
Other net rental income
(loss)
.
Withdrawals &
distributions
42 WILLOW
BLVD
Ending capital account . .
JACKSON
M
Final K-1
Other deductions
14
3
.
Current year increase (decrease)
D
13
.
$
20
See20
back of form and separate instructions.
Qualified nonrecourse financing
.
$
.
Capital contributed
during the year
TANGLEWOOD
REALTY
C
Section 179 deduction
Net rental real estate income (loss)
, 20
Partner’s share of liabilities at year end:
L
Partner’s capital account analysis:
00-0000000
B
12
C
2
ending
A
19
.
20
20 %
%
INDIVIDUAL
20For
% calendar year 2014, or tax 20 %
20year
20
% beginning
%
, 2014
Department
Loss of the Treasury
Internal Revenue Service
Nonrecourse
500
STMT
Partner’s
share of profit, loss, and capital (see instructions):
X
Beginning
Ending
Schedule K-1
(Form
1065)
Profit
K
Tax-exempt income and
nondeductible expenses
Foreign partner
3412What
SILVERWOOD
DR
type of entity is this partner? INDIVIDUAL
I1
JACKSON
TN 04953
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
X. . . . . . . . . . . . . . . . . .
J
17
TN 04953
member
17
Schedule K-1 (Form 1065) 2014
IRS.gov/form1065
9c
Unrecaptured section 1250 gain
10
Net section 1231 gain (loss)
18
11
Other income (loss)
C
- 63 -
Tax-exempt income and
nondeductible expenses
500
Schedule K-1 (Form 1065)
Line 18 – Nondeductible Expenses
Travel and entertainment
500
Total
500
STATEMENT
- 64 -
651113
10,000
00-0000000
WESTCHESTER DEVELOPMENT, LLC
3412 SILVERWOOD DR
JACKSON
TN
04953
TN
04953
000-00-0000
JOHN BORROWER
3412 SILVERWOOD DR
JACKSON
X
X
INDIVIDUAL
50
50
50
50
50
50
X
ISA
- 65 -
651113
10,000
00-0000000
WESTCHESTER DEVELOPMENT, LLC
3412 SILVERWOOD DR
JACKSON
TN
04953
TN
04953
000-00-0001
GINNY BORROWER
3412 SILVERWOOD DR
JACKSON
X
X
INDIVIDUAL
50
50
50
50
50
50
X
ISA
- 66 -
Final K-1
Schedule K-1
(Form 1120S)
Deductions, Credits, and Other Items
Department of the Treasury
Internal Revenue Service
1
For calendar year 2013, or tax
year beginning
Code
, 2013
ending
, 20
Shareholder’s Share of Income, Deductions,
Credits, etc.
See back of form and separate instructions.
Part I
A
Information About the Corporation
Ordinary business income (loss)
Name
City
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Interest income
42000 N. EXECUTIVE DR.
JACKSON
TN 04900
St
D
Foreign transactions
1,500
Zip Code
6
Royalties
7
Net short-term capital gain (loss)
8a Net long-term capital gain (loss)
IRS Center where corporation filed return
Part II
14
1,500
5b Qualified dividends
Corporation’s name, address, city, state, and ZIP code
CREATIVE NETWORK DESIGN SYSTEMS
C
Credits
5a Ordinary dividends
Corporation’s employer identification number
Name
Addr
13
Code
10,000
00-0000000
B
OMB No. 1545-0130
Amended K-1
Part III Shareholder’s Share of Current Year Income,
8b Collectibles (28% ) gain (loss)
Information About the Shareholder
8c Unrecaptured section 1250 gain
Shareholder’s identifying number
000-00-0000
E
Name
9
Shareholder’s name, address, city, state, and ZIP code
Name
Addr
City
Net section 1231 gain (loss)
JOHN BORROWER
3412 W SILVERWOOD DR.
JACKSON
Shareholder’s percentage of stock
ownership for tax year
. . .
Other income (loss)
15
11
Section 179 deduction
16
Items affecting shareholder basis
D
2,500
TN 04953
St
F
10
.
.
.
Zip Code
50.0000 %
12
Other deductions
17
Other information
* See attached statement for additional information.
For Paperwork Reduction Act Notice, see Instructions for Form 1120S.
IRS.gov/form1120s
ISA
- 67 -
Schedule K-1 (Form 1120S) 2013
U.S. Return of Partnership Income
TANGLEWOOD REALTY
00-0000000
42 WILLOW BLVD
01/01/2002
JACKSON, TN
04921
376,300
X
5
60,500
60,500
60,500
60,500
30,000
10,000
14,000
26,000
1,000
17,000
17,000
20,000
2,500
120,500
(60,000)
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 68 -
00-0000000
04921
- 69 -
- 70 -
(60,000)
10,000
(50,000)
SEE STATEMENT 1
- 71 -
2,500
(50,000)
20,000
80,000
16,000
64,000
7,500
60,000
16,000
31,000
425,000
121,200
303,800
44,000
31,000
425,000
131,200
293,800
418,800
376,300
14,340
21,000
16,340
30,000
133,460
123,460
250,000
418,800
206,500
376,300
(55,500)
7,000
7,000
7,000
2,500
2,500
(53,000)
(60,000)
250,000
12,000
(55,500)
206,500
- 72 -
206,500
Form 1065, Page 1 Detail
Line 20 – Other deductions
Travel and entertainment
2,500
Total
2,500
Form 1065, Page 4 Detail
Line 18c – Nondeductible Expenses
Travel and entertainment
2,500
Total
2,500
STATEMENT 1
- 73 -
U.S. Return of Partnership Income
WESTCHESTER DEVELOPMENT, LLC
00-0000000
3412 WEST SILVERWOOD DR
05/20/2011
JACKSON, TN
04953
X
2
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 74 -
00-0000000
04921
- 75 -
- 76 -
20,000
- 77 -
20,000
20,000
20,000
- 78 -
20,000
Rental Real Estate Income and Expenses of a
Partnership or an S Corporation
WESTCHESTER DEVELOPMENT, LLC
00-0000000
321 Sunview Terrace,
Memphis, TN 04951
1
365
0
27,700
350
850
500
3,000
2,000
1,000
7,700
20,000
27,700
7,700
20,000
ISA
- 79 -
Form
4562
Depreciation and Amortization
OMB No. 1545-0172
See separate instructions.
Name(s) shown on return
(a) Description of property
(b) Cost (business use only)
179
Identifying number
Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing
separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Attachment
Sequence No.
Attach to your tax return.
Business or activity to which this form relates
WESTCHESTER DEVELOPMENT, LLC
321 SUNVIEW TERRACE
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1
2
3
4
5
2013
(Including Information on Listed Property)
Department of the Treasury
Internal Revenue Service (99)
00-0000000
1
2
3
4
5
(c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . .
8
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
10 Carryover of disallowed deduction from line 13 of your 2012 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . .
10
11
....
11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . .
12
13 Carryover of disallowed deduction to 2014. Add lines 9 and 10, less line 12
13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
Part II
Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
15 Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
16 Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Part III
MACRS Depreciation (Do not include listed property.) (See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2013 . . . . . . . . . . . . . . . . .
17
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section B—Assets Placed in Service During 2013 Tax Year Using the General Depreciation System
(a) Classification of property
19a
b
c
d
e
f
g
h
(b)
(c)
(d) Recovery
period
(e) Convention
(f) Method
1,000
(g) Depreciation deduction
3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
Residential rental
property
i Nonresidential real
property
Section C—Assets Placed in Service During 2012 Tax Year Using the Alternative Depreciation System
20a Class life
S/L
b 12-year
12 yrs.
S/L
c 40-year
40 yrs.
MM
S/L
Part IV
Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . .
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . .
23
For Paperwork Reduction Act Notice, see separate instructions.
21
22
1,000
Form
ISA
- 80 -
4562 (2013)
U.S. Income Tax Return for an S Corporation
CREATIVE NETWORK DESIGN SYSTEMS
00-0000000
42000 N. EXECUTIVE DR.
09/01/2004
JACKSON, TN
04900
95,000
220,000
220,000
220,000
220,000
140,000
6,000
24,000
4,000
16,000
2,000
8,000
200,000
20,000
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 81 -
00-0000000
04921
- 82 -
20,000
3,000
3,000
5,000
- 83 -
23,000
2,000
2,000
5,000
12,000
5,000
12,000
132,000
32,000
- 84 -
100,000
132,000
44,000
88,000
114,000
95,000
30,000
NONE
20,000
2,000
50,000
12,000
12,000
2,000
50,000
31,000
114,000
95,000
24,000
3,000
4,000
4,000
4,000
23,000
27,000
- 85 -
12,000
20,000
4,000
NONE
NONE
36,000
5,000
31,000
NONE
NONE
NONE
NONE
U.S. Corporation Income Tax Return
INTERIOR INNOVATIONS, INCORPORATED
00-0000000
1000 HEAVEN'S WAY
01/31/2003
JACKSON, TN
04900
206,936
490,000
490,000
400,000
90,000
COD INCOME
10,000
100,000
33,000
35,000
5,000
1,000
2,000
50
4,000
2,000
850
500
600
84,000
16,000
3,000
3,000
13,000
1,950
1,950
NONE
0
NONE
NONE
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 86 -
00-0000000
04921
- 87 -
1,950
1,950
1,950
1,950
1,950
1,950
1,950
1,950
X
5700
RETAIL TRADE
FURNITURE
X
X
X
- 88 -
X
X
X
X
NONE
1
3,000
X
X
X
X
X
X
X
- 89 -
40,000
40,000
39,713
NONE
39,713
83,492
95,327
NONE
95,327
40,000
15,000
3,000
15,000
3,000
18,854
5,345
13,509
18,854
5,345
13,509
600
400
200
600
500
100
30,000
194,914
206,936
5,078
NONE
NONE
10,000
20,663
10,663
30,000
30,000
30,000
141,173
156,273
196,914
206,936
15,100
2,400
2,000
500
500
18,000
2,000
2,000
16,000
141,173
15,100
156,273
- 90 -
156,273
Form 1120, Page 1 Detail
Line 26 – Other deductions
Amortization
100
Travel, meals and entertainment
500
Total
600
STATEMENT 1
- 91 -
Compensation of Officers
INTERIOR INNOVATIONS, INCORPORATED
GINNY BORROWER
00-0000000
000-00-0001
100
100
33,000
33,000
33,000
ISA
- 92 -
Mortgage Guaranty Insurance Corporation
MGIC Plaza, Milwaukee, Wisconsin 53202 • www.mgic.com
© 2010-2015 Mortgage Guaranty Insurance Corporation. All rights reserved.
71-40325 3/15