Schedule C Test Se t

4: Thomas and Clare Graham

Taxpayer Documents
Social security cards for Thomas and Clare Graham
Completed intake and interview sheet
Form W-2

Interview Notes
Thomas and Clare are married and want to file a joint return. They did not itemize for
201 and will not itemize for 2014.
Clare worked as a receptionist and received a Form W-2 to report her wages.
Thomas is a self-employed handyman, doing home repairs. Thomas drives back
and forth from his home to one job site each day. He occasionally stops at a local
building supply store to pick up supplies before going on to the job. Thomas has
a written mileage log that shows that he drove his truck 8,125 miles from home to
the jobs and back. This includes 345 miles from the building supply store to the
job. He also drove 3,084 other miles that were not related to his business.

Thomas started using his truck for business on January 5, 2009.

The couple has another vehicle that Clare drives. Clare drove 250 miles going to and
from work in 2014.

Thomas kept a log that shows that the gross income from his business was
$33,014. He did not receive a Form 1099-K or a Form 1099-MISC for any of his
business income.
Thomas is not required to issue any Forms 1099 for his business.
Thomas is a cash basis taxpayer and he materially participates in his business.
Thomas is not claiming de reciation on any items urchased in a revious tax year.
Thomas records show the following business expenses for 20144:
Business use of his cell phone: $722
Clothing and Safety Equipment:
- Jeans $184
- Steel toe boots $212
- Safety goggles $26
Lumber, paint, small tools, and other supplies: $7,410
Table saw, 100% business use, purchased and placed in service January 12,
2014: $693.
Thomas and Clare bought a used vacuum cleaner for $39 that Tom
occasionally takes with him on jobs They estimate that about 1/3 of the
vacuum cleaner use is for his business.
Thomas wants to depreciate the cost of the table saw and vacuum cleaner
under IRC Section 179.

VITA Schedule C Project Test

 Thomas occasionally uses his kitchen table to do recordkeeping for his business.
He did not keep records of his home expenses, like utilities, but he knows that he
used 150 sq. ft. for business. The total home size is 1,940 sq. ft.
Thomas rarely has access to a refrigerator to store his lunch at the job sites, so he
must eat out on his workdays. He receipts show that he spent $2,349 on his
lunches.
Business liability Insurance: $720
Business license: $125
Equipment trailer, 100% business use, purchased and placed in service on March
18, 2014: $924. Thomas wants to take MACRS depreciation on the trailer. He
does not elect to deduct the cost under IRC Section 179. Thomas also elects not
to claim the special depreciation allowance. The asset type is Trailer or Trailer
Mounted Container 5 year property.

VITA Schedule C Project Test

Test

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2014
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MORTON GROVE, IL
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TTCLARE GRAHAM
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626-XX60016
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