Facts: Scott F. and Meegan M. Koon are married and live at 2723


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Please I need help in preparing an income tax return 2015 from the IRS page form. I need all the calculation attached. Please find problem attached and instructions. Thank you! TaxReturnProblem.docx Facts: Scott F. and Meegan M. Koon are married and live at 2723 Brandywine Drive, Ann Arbor, MI 48104. They file a joint return and are calendar year, cash basis taxpayers. 1. Scott is a self­employed accountant (professional activity code is 541213). He maintains an office at 1001 Oakbrook Way, Suite 400, Ann Arbor, MI 48103. He shares the suite with several other professionals and has no employees. A receptionist handles all calls and is provided by the landlord as part of the services offered to tenants. Scott’s work­related expenses for 2015 are as follows: Office rent $9,800 Utilities 3,000 Accounting services 1,200 Office expenses (supplies, use of copier, etc.) 1,100 Legal services (see item 9. below) 300 State and local license fees 900 Renter’s insurance (covers personal liability, casualty, theft) 1,500 Replacement of reception room furnishings (6/5/2015) 2,200 Professional dues and subscriptions to trade publications 600 Business lunches 1,400 Contribution to H.R. 10 (Keogh) plan 5,000 Medical insurance premiums 7,000 The business meals Scott paid for were to entertain various visiting executives from the clients he does business with. As is the case with all of Scott’s business transactions, the lunches are properly documented and supported by receipts. Because the reception room furnishings were looking shabby, Scott and his suite­mates had them replaced. The $2,200 Scott spent was his share (i.e., a sofa and coffee table) of the cost. Scott follows a policy of avoiding depreciation by utilizing the Section 179 election to expense assets. All of Scott’s office equipment (e.g., desk, chairs, file cabinets, computer, etc.) has previously been expensed. Of 16,000 total miles in 2015, Scott drives his car (a Ford Explorer purchased on 6/1/2013) 8,400 miles for business (not including commuting) and has business parking and toll charges of $310. The Koons use the automatic mileage method of claiming automobile expenses. 2. Meegan is an occupational therapist employed on a part­time basis by Thompson Consultants, Inc. Her employer does not provide her with an office, and she has no separate office in her home. She does, however, maintain her business records at home and lists it as her business address. After receiving her assignments by phone, she drives her car a 2012 Mazda 323 (purchased on 7/1/2014 for $10,000) directly to the residence of the patient. Thompson Consultants, Inc. requires all of its therapists to wear uniforms while on duty. As Meegan is not a full­time employee, she is not covered by her employer’s health or retirement plans. Meegan’s work­related expenses for 2015 appear below: Mileage (total miles in 2015 = 12,000) 8,000 miles Professional dues and subscriptions $1,280 Continuing education programs (required to maintain license) 440 Annual license fee 180 Therapy supplies 260 Uniforms purchased (including $240 for shoes) 410 Laundering of uniforms 210 3. At a foreclosure sale on May 8, 2015, the Koons purchased a house to be held as a rental investment. The property cost $400,000 (of which $50,000 is allocated to the land) and is located at 165 Little Lake Drive, Ann Arbor, MI 48103. After making minor repairs and placing the property in service on June 1, 2015, the Koons were fortunate in that they were able to rent it immediately for $1,650 a month (payable on the first of each month). They meet the requirements of active participation. Information regarding the rental property expenses for 2015 are summarized below: Refundable damage deposit Property taxes Interest on mortgage Repairs Insurance Street paving assessment 4,000 3,800 3,500 4,400 2,500 3,500 Although the property was rented for only seven months, in late December 2015 the tenants prepaid the Januar

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