home / study / questions and answers / business / accounting / kelly and chanell
ID: 1191576 • Letter: H
Question
home / study / questions and answers / business / accounting / kelly and chanelle chambers, ages 47 and.45, are ...
Question
Kelly and Chanelle Chambers, ages 47 and.45, are married and live at 584 Thoreau
Drive, Boston, MA 59483. Kelly's Social Secuiity number is 254.91.9483 and Chanelle's
is,374-48-2938. The Chamber's have two children: Emma age23, and Chet, age 19.
Their Social Security numbers are 385-64-8496 and 385-68-9462, respectively. Emria is a
single college-student-and'earned $8,000 during rhe summer. Kelly and Chanelle help
Emma through school by paying for her room, board, and tuition. Emma lives at home
during the summer. Chet has a physical handicap and lives at home. He attends a local
university and earned $4,000 working for a marketing firm. In sum, Kelly and Chanelle
provide rnore than Sao/" of. both Emma's and chet's toial support for the year.
Kelly is a commercial pilot for a small airline. His salary is $95,000, from which
. $19,000 of federal income tax and $8,000 of state income tax were withheld. Kelly also
pays premiums for health, disability and life insurance. $2,000 of the premium was for
health insurance, $250 for disability and $400 for life insurance.
Chanelle owns Alliance Networks, a proprietorship that does network consulting.
During the year, Chanelle's gross revenues were $23,000. She incurred the following
expenses in her business:
Liability insurance $ 700
Software rental 5,400
Journals and magazines 150
Training seminars 1,200
Supplies 1,300
Donations to a political campaign fund 800
Kelly enjoys playing guitar and plays in a band. Kelly's band has developed a local following.
This year, his gross revenues were $1,200 for playing shows attd $700 on CD
sales. He incurred the following expenses:
Studio rent expense $ 1,300
Sound system repairs 200
CD production 500
New guitar and amplifier 800
Kelly's father passed away during the year. Kelly and Chanelle received $100,000 from
.the life insurance policy. Neither Kelly nor Chanelle paid any of the premiums.
chanelle purchased 100 shares of Thurston co.-stock on May 1,1991, for $1,000.
_.Thurston Co. was declared bankrupt during rhe current year.
Chet's physician recommended that he see a physical therapist to help with his disabilii!y. |:lty paid the therapist $7,000 during the year.because his insurance would not cover the bills.
Kelly and Chanelle-went to Las Vegas and won $5,000 at the blackjack table. The next
night, they lost $6,000.
Kelly and Chanelle glyq $900 to their church and, during rhe year, they had the following other income and expenses:
Real estate taxes
$1,400
Property taxes on car (determined by value) 500
Home mortgage interest 9,000
Credit card finance charges 2,600
Tax return preparation fees ($600 is allocable to Chanelle's business) 1,000
Sales tax on purchases during the year 6,200
Interest from a savings account 800
Interest from City of Boston Bonds 700
Dividend from 3M stock 400
Prepare Kelly and Chanelle's taxreturn Form 1040 and Schedules A, B, C, D, and SE
for the current year.
Explanation / Answer
To file your 2008 tax return, simply follow these instructions:
Step 1 - Sign and date the return
Because you're filing a joint return, Kelly and Chanelle both need to sign the tax return.
If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to
sign your return. To do this, you can use Form 2848, Power of Attorney and Declaration of Representative.
Step 2 - Assemble the return
These forms should be assembled behind Form 1040 --U.S. Individual Income Tax Return
- Schedule A
- Schedule C
- Schedule SE
- Form 4562
Staple these documents to the front of the first page of the return:
Form W-2: Wage and Tax Statement
1st
Step 3 - Mail the return
Mail the return to this address:
Department of the Treasury
Internal Revenue Service Center
Andover, MA 05501-0002
We recommend that you use one of these IRS-approved methods to send your return. Retain the proof of mailing to avoid a late filing penalty:
- U.S. Postal Service certified mail.
- DHL Same Day Service, Next Day 10:30 am, Next Day 12:00 pm, Next Day 3:00 pm, or 2nd Day Service.
- FedEx Priority Overnight, Standard Overnight, 2Day, International Priority, or International First.
- United Parcel Service Next Day Air, Next Day Air Saver, 2nd Day Air, 2nd Day Air A.M., Worldwide Express Plus, or Worldwide Express.
Step 4 - Keep a copy
Print a second copy of the return for your records. We recommend that you also print and retain these supporting forms, which don't need to be
sent to the IRS:
- - Background Worksheet
- - Dependents Worksheet
- - Form 1099-INT/OID
- - Form 1099-DIV
- - Home Mortgage Interest Worksheet
- - Charitable Worksheet
- - Depreciation Summary
- - Depreciation Worksheet
2008 Tax Return Information. Keep this for your records.
Here is some additional information about your 2008 return. Keep this information with your records. You will need your 2008 AGI to electronically
sign your return next year.
Quick Summary
Total (Gross) Income
Adjusted Gross Income
Taxable Income
Total Federal Tax
Total Payments
Penalties
Refund Amount
Amount You Owe
$113,950
112,985
79,185
14,410
19,000
0
4,590
$0
F
o
r
m
Department of the Treasury—Internal Revenue Service
1040
U.S. Individual Income Tax Return
2008
For the year Jan. 1–Dec. 31, 2008, or other tax year beginning
Label
(See
instructions.)
Use the IRS
label.
Otherwise,
please print
or type.
L
A
B
E
L
H
E
R
E
Your first name and initial
Kelly
Exemptions
OMB No. 1545-0074
Your social security number
, 20
Chambers
Chanelle
254-93-9483
Last name
Spouse's social security number
Chambers
374-48-2938
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
You must enter
your SSN(s) above.
584 Thoreau Drive
City, town or post office, state, and ZIP code. If you have a foreign address, see instructions.
Boston
MA
Checking a box below will not
change your tax or refund
59483
You
Check here if you, or your spouse if filing jointly, want $3 to go to this fund (see instructions)
2
3
6a
b
c
X
Married filing separately. Enter spouse's SSN above
and full name here.
5
Qualifying widow(er) with dependent child (see instructions)
Yourself. If someone can claim you as a dependent, do not check box 6a
.......
Dependents:
Emma
Chet
Last name
Chambers
Chambers
(3) Dependent's
relationship to
you
(2) Dependent's
social security number
2
Boxes checked
on 6a and 6b
Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) First name
If more than four
dependents, see
instructions.
Head of household (with qualifying person). (See instr.) If
the qualifying person is a child but not your dependent, enter
this child's name here.
Married filing jointly (even if only one had income)
X
X
Spouse
4
Single
1
Check only
one box.
IRS Use Only—Do not write or staple in this space.
Last name
If a joint return, spouse's first name and initial
Presidential
Election Campaign
Filing Status
(99)
, 2008, ending
(4) X if qualifying
child for child tax
credit (see instr.)
No. of children
on 6c who:
•
•
lived with you
2
did not live with
you due to divorce
or separation
(see instructions)
Dependents on 6c
not entered above
385-64-8496 Daughter
385-68-9462 Son
4
95,000
800
Add numbers on
Income
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
If you did not
get a W-2,
see instructions.
Enclose, but do
not attach, any
payment. Also,
please use
Form 1040-V.
Adjusted
Gross
Income
KIA
d Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
lines above
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . .
7
8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . .
8a
700
b Tax-exempt interest. Do not include on line 8a . . . . . . . . . . . . . .
8b
9a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . .
9a
0
9b
b Qualified dividends (see instructions) . . . . . . . . . . . . . . . . . . .
10
Taxable refunds, credits, or offsets of state and local income taxes (see instructions) . . . . . . .
10
11
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
12
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . .
12
13
Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . . . . . . . . . . . .
13
14
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
b Taxable amount (see inst.) 15b
15a IRA distributions . . . . . . . . . . . . . . 15a
b Taxable amount (see inst.) 16b
16a Pensions and annuities . . . . . . . . . . . 16a
17
17
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . .
18
Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
19
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
20a
20a Social security benefits . . . . . .
b Taxable amount (see inst.) 20b
GAMBLING
21
Other income. List type and amount (see instructions) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
21
22
Add the amounts in the far right column for lines 7 through 21. This is your total income . . . .
22
23
24
25
26
27
28
29
30
31a
32
33
34
35
Educator expenses (see instructions) . . . . . . . . . . . . . .
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ . .
Health savings account deduction. Attach Form 8889 . . . . . .
Moving expenses. Attach Form 3903 . . . . . . . . . . . . . .
One-half of self-employment tax. Attach Schedule SE . . . . . .
Self-employed SEP, SIMPLE, and qualified plans . . . . . . . .
Self-employed health insurance deduction (see instructions) . .
Penalty on early withdrawal of savings . . . . . . . . . . . . . .
Alimony paid b Recipient's SSN
IRA deduction (see instructions) . . . . . . . . . . . . . . . . .
Student loan interest deduction (see instructions) . . . . . . . .
Tuition and fees deduction. Attach Form 8917 . . . . . . . . . .
Domestic production activities deduction. Attach Form 8903 . .
.....
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
23
0
12,750
0
0
0
0
5,000
113,950
0
24
25
26
27
28
29
30
31a
32
33
34
35
400
0
0
0
965
0
0
0
0
0
36
Add lines 23 through 31a and 32 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . . . .
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see instructions.
36
37
965
112,985
Form 1040 (2008)
Kelly
Form 1040 (2008)
Tax
and
Credits
Standard
Deduction
for—
• People who
checked any
box on line
39a, 39b, or
39c or who
can be
claimed as a
dependent, see
instructions
Chambers
254-93-9483
Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Blind.
Check
Total boxes
You were born before January 2, 1944,
0
checked
39a
if:
Blind.
Spouse was born before January 2, 1944,
b If your spouse itemizes on a separate return, or you were a dual-status alien, see instructions and check here
39b
39c
c Check if standard deduction includes real estate taxes or disaster loss (see instructions) . . . . . . . .
38
40
41
Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . . . . .
Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
If line 38 is over $119,975, or you provided housing to a Midwestern displaced individual, see
instructions. Otherwise, multiply $3,500 by the total number of exemptions claimed on line 6d . . .
Page 2
112,985
40
42
43
38
39a
19,800
93,185
41
43
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . . . . . .
44
Tax (see instructions). Check if any tax is from:
45
Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . . . . . . . . . . .
45
46
Add lines 44 and 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . . 47
46
47
Single or
Married filing
separately,
$5,450
48
Credit for child and dependent care expenses. Attach Form 2441
....
48
49
Credit for the elderly or the disabled. Attach Schedule R . . . . . . . . .
49
50
Education credits. Attach Form 8863
..................
50
Married filing
jointly or
Qualifying
widow(er),
$10,900
51
Retirement savings contributions credit. Attach Form 8880 . . . . . . .
51
52
Child tax credit (see instructions). Attach Form 8901 if required.
52
53
Credits from Form: a
14,000
79,185
12,481
0
12,481
• All others:
Form(s) 8814 b
a
b
8396
5695
....
0
0
0
0
53
54
Payments
If you have a
qualifying
child, attach
Schedule EIC.
Other credits from Form: a
55
56
Add lines 47 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 55 from line 46. If line 55 is more than line 46, enter -0- . . . . . . . . . . . . . . .
55
57
Self-employment tax. Attach Schedule SE
.............................
57
58
59
4137 b
8919 . . . . . . . .
Unreported social security and Medicare tax from Form: a
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . .
58
Additional taxes:
61
Other
Taxes
54
Add lines 56 through 60. This is your total tax
62
63
64a
b
65
66
67
68
69
70
71
19,000
62
Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . .
0
63
2008 estimated tax payments and amount applied from 2007 return . .
Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . 64a
64b
Nontaxable combat pay election . . . . .
0
65
Excess social security and tier 1 RRTA tax withheld (see instructions) . .
66
Additional child tax credit. Attach Form 8812 . . . . . . . . . . . . . .
67
Amount paid with request for extension to file (see instructions) . . . . .
0
Credits from Form:
a
2439
b
4136 c
8801 d
8885
68
First-time homebuyer credit. Attach Form 5405 . . . . . . . . . . . . .
69
Recovery rebate credit (see worksheet in the instructions) . . . . . . .
70
Add lines 62 through 70. These are your total payments . . . . . . . . . . . . . . . . . . . .
a
Form 3800
AEIC payments
c
44
60
Head of
household,
$8,000
b
c
8839
Form 4972 . . . . . . . . . . . . . . . . . . .
Form 8801
b
.........................
Refund
72
If line 71 is more than line 61, subtract line 61 from line 71. This is the amount you overpaid
Direct deposit?
See instructions
and fill in 73b,
73c, and 73d,
or Form 8888.
73a
Amount of line 72 you want refunded to you. If Form 8888 is attached, check here
74
Amount
You Owe
75
76
Third Party
Designee
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Sign
Here
b
d
Routing number
Account number
XXXXXXXXX
XXXXXXXXXXXXXXXXX
c Type:
KIA
71
72
73a
19,000
4,590
4,590
56
59
60
Savings
74
Amount you owe. Subtract line 71 from line 61. For details on how to pay, see the instructions
Estimated tax penalty (see instructions) . . . . . . . . . . . . . . . . .
76
0
75
Yes. Complete the following
X
No
Designee's
Phone
Personal indentification
name
no.
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
Your occupation
Daytime phone number
Commercial Pilot
See instructions.
Paid
Preparer's
Use Only
Checking
...
....
Amount of line 72 you want applied to your 2009 estimated tax
Joint return?
Keep a copy
for your
records.
61
Household employment taxes. Attach Schedule H
0
12,481
1,929
0
0
0
14,410
Spouse's signature. If a joint return, both must sign.
Date
Spouse's occupation
Network Consultant
Preparer's
signature
Firm's name (or
yours if self-employed),
address, and ZIP code
Date
Preparer's SSN or PTIN
Check if
self-employed
EIN
Phone no.
Form 1040 (2008)
SCHEDULES A&B
OMB No. 1545-0074
Schedule A—Itemized Deductions
(Form 1040)
2008
(Schedule B is on page 2)
Department of the Treasury
(99)
Internal Revenue Service
Attach to Form 1040.
See Instructions for Schedules A&B (Form 1040).
Name(s) shown on Form 1040
Kelly
Chambers
254-93-9483
Caution. Do not include expenses reimbursed or paid by others.
0
1
1 Medical and dental expenses (see instructions) . . . . . . . . .
112,985
2
2 Enter amount from Form 1040, line 38 . .
8,474
3
3 Multiply line 2 by 7.5% (.075) . . . . . . . . . . . . . . . . . . .
4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . .
Taxes You
Paid
5
State and local (check only one box)
a
b
6
7
8
9
10
Interest
You Paid
(See
instructions.)
Note:
Personal
interest is
not
deductible.
11
12
13
14
15
Gifts to
Charity
If you made a
gift and got a
benefit for it,
see instructions.
(See
instructions.)
X
Income taxes, or
22
23
24
25
26
27
28
....
4
0
8,000
5
General sales taxes
1,400
6
Real estate taxes (see instructions) . . . . . . . . . . . . . . . .
500
7
Personal property taxes . . . . . . . . . . . . . . . . . . . . . .
Other taxes. List type and amount
_______________
0
8
___________________________________
Add lines 5 through 8
................................... 9
Home mortgage interest and points reported to you
9,000
on Form 1098 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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
___________________________________
___________________________________
0
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11
Points not reported to you on Form 1098. See instructions
0
12
for special rules . . . . . . . . . . . . . . . . . . . . . . . . . .
0
13
Qualified mortgage insurance premiums (See instructions) . . .
Investment interest. Attach Form 4952 if required. (See instr.) . . . 14
Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Gifts by cash or check. If you made any gift of $250 or
more, see instructions . . . . . . . . . . . . . . . . . . .
17 Other than by cash or check. If any gift of $250 or more,
see instructions. You must attach Form 8283 if over $500
18 Carryover from prior year . . . . . . . . . . . . . . . . .
19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . .
Casualty and
Theft Losses 20
Job Expenses 21
and Certain
Miscellaneous
Deductions
07
Your social security number
Medical
and
Dental
Expenses
(See
instructions.)
Attachment
Sequence No.
....
9,900
9,000
900
16
0
. . . . 17
0
18
....
................
Other
Miscellaneous
Deductions
Total
29 Is Form 1040, line 38, over $159,950 (over $79,975 if married filing separately)?
Itemized
X 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
900
20
0
27
0
28
0
29
Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . . . . . .
Unreimbursed employee expenses—job travel, union
dues, job education, etc. Attach Form 2106 or 2106-EZ
if required. (See instructions.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________
0
21
___________________________________
22
Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . .
Other expenses—investment, safe deposit box, etc. List
type and amount
_______________________
0
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23
0
Add lines 21 through 23 . . . . . . . . . . . . . . . . . . . . . . 24
112,985
Enter amount from Form 1040, line 38 . . . 25
26
2,260
Multiply line 25 by 2% (.02) . . . . . . . . . . . . . . . . . . . .
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . . . . .
Other—from list in the instructions. List type and amount
_______________
_______________________________________________
19
19,800
Yes. Your deduction may be limited. See instructions for the amount to enter.
30
KIA
If you elect to itemize deductions even though they are less than your standard deduction, check here
For Paperwork Reduction Act Notice, see Form 1040 instructions.
..
Schedule A (Form 1040) 2008
Profit or Loss From Business
SCHEDULE C
(Form 1040)
OMB No. 1545-0074
(Sole Proprietorship)
Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B.
Attach to Form 1040, 1040NR, or 1041.
See Instructions for Schedule C (Form 1040).
Department of the Treasury
(99)
Internal Revenue Service
2008
Attachment
Sequence No.
09
Social security number (SSN)
Name of proprietor
Chanelle
374-48-2938
Chambers
A
Principal business or profession, including product or service (see the instructions)
C
Business name. If no separate business name, leave blank.
B Enter code from instructions
Network Consulting
D Employer ID number (EIN), if any
Alliance Networks
584 _ _ _ _ _ _ Drive
_ _ _ _ Thoreau_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
E
Business address (including suite or room no.)
City, town or post office, state, and ZIP code
F
Accounting method:
G
Did you "materially participate" in the operation of this business during 2008? If "No," see instructions for limit on losses . . .
H
If you started or acquired this business during 2008, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part I
1
2
3
4
5
6
7
(1)
X
Cash
(2)
Boston
Accrual
MA
Other (specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(3)
X
Yes
No
Income
Gross receipts or sales. Caution. See instructions and check box if:
This income was reported to you on Form W-2 and the “Statutory employee” box on that form
was checked, or
...
23,000
1
You are a member of a qualified joint venture reporting only rental real estate income not
subject to self-employment tax. Also, see instructions for limit on losses.
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold (from line 42 on page 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . . . .
Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II
.
.
.
.
.
2
4
5
23,000
0
23,000
6
7
23,000
18
150
3
Expenses. Enter expenses for business use of your home only on line 30.
8
Advertising . . . . . . . . . .
8
9
Car and truck expenses (see
instructions) . . . . . . . . . .
9
10
Commissions and fees
....
11
Contract labor (see instructions)
Depletion
12
13
Depreciation and section 179
expense deduction (not
included in Part III) (see
instructions) . . . . . . . . .
13
Employee benefit programs
(other than on line 19) . . . . .
0
Office expense
19
Pension and profit-sharing plans
20
Rent or lease (see instructions):
11
12
18
10
14
14
59483
...........
15
Insurance (other than health) .
16
............
...
a Vehicles, machinery, & equipment . .
b Other business property
.......
19
21
Repairs and maintenance . . . . . . .
21
22
Supplies (not included in Part III) . . .
22
Taxes and licenses . . . . . . . . . .
23
23
15
0
700
Interest:
a
Mortgage (paid to banks, etc.)
b
24
1,300
Travel, meals, and entertainment:
a Travel . . . . . . . . . . . . . . . . .
24a
b Deductible meals and
entertainment (see instructions)
24b
...
25
Utilities
................
Wages (less employment credits) . .
Other expenses (from line 48 on
page 2) . . . . . . . . . . . . . . . .
0
25
26
27
16a
5,400
20a
20b
26
27
1,200
Total expenses before expenses for business use of home. Add lines 8 through 27 . . . . . . . . . . . . .
28
29
Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
30
Expenses for business use of your home. Attach Form 8829 . . . . . . . . . . . . . . . . . . . . . . . . . .
30
9,350
13,650
0
31
Net profit or (loss). Subtract line 30 from line 29.
31
13,650
Other . . . . . . . . . . . . .
16b
17
Legal and professional
services . . . . . . . . . . . .
17
28
600
If a profit, enter on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR,
line 13 (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
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, and Schedule SE, line 2, or on
Form 1040NR, line 13 (if you checked the box on line 1, see the line 31 instructions).
Estates and trusts, enter on Form 1041, line 3.
32a
32b
X
All investment is at risk.
Some investment is not
at risk.
If you checked 32b, you m ust attach Form 6198. Your loss may be limited.
KIA
For Paperwork Reduction Act Notice, see the instructions.
Schedule C (Form 1040) 2008
Chanelle
Cost of Goods Sold (see instructions)
Schedule C (Form 1040) 2008
Part III
Method(s) used to
value closing inventory:
33
a
Cost
Chambers
b
374-48-2938
Lower of cost or market
c
Page
2
Other (attach explanation)
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Inventory at beginning of year. If different from last year's closing inventory, attach explanation
....
35
36
Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . .
36
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
41
Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on page 1, line 4 . . . . .
42
Part IV
Yes
No
0
0
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.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.