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  • Christopher Crosphit (birthdate April 28, 1977) owns and operates a health club called “Catawba Fitness.” The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club:
    Income$216,000Expenses:  Business insurance3,600 Office supplies3,300 Payroll98,900 Payroll taxes9,112 Travel2,420 Equipment & club maintenance10,720 Cleaning service8,775 Equipment rent22,820 Utilities (electric, water, gas)13,975 Telephone2,778 Rent32,600 Advertising5,200 Special workout clothing and boxing gloves780 Subscription to Biceps Monthly magazine120 Educational seminar on weight training770 Other expenses1,830The business uses the cash method of accounting and has no accounts receivable or inventory held for resale.
    Chris has the following interest income for the year:
    Upper Piedmont Savings Bank savings account$13,000Morgan Bank bond portfolio interest12,075Chris also dabbles as a broker of antique and rare books. He acquires and scavenges for books and then sells them on the Internet. He generated $4,000 of sales in 2019 and the books he sold cost $3,500. He also incurred $7,600 in travel and other expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it.
    Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and he files his tax return as head of household. Arnold (birthdate July 1, 2001) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities.
    Chris’ Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2019.
    Required: Complete Chris’ federal tax return for 2019 on Form 1040, Schedule 1, Schedule 3, Schedule B, Schedule C, and Form 8829. Do not complete Form 4562 (depreciation).

Form 1040 shows the U.S Individual Income Tax Return. The form is divided into thirteen sections. Form Header shows the following information from left to right: Form 1040, Department of the Treasury-Internal Revenue Service (99), U.S. Individual Income Tax Return, 2016. OMB No. 1545-0074, and IRS use only- do not write or staple in this space. Your first name and initial, Last name, if a joint return, spouse’s first name and initial, Last name, Home address (number and street), If you have a P.O. box, see instructions, City, town or post office, State, and ZIP code. If you have a foreign address, also complete spaces below (see instructions), Foreign country name, Foreign province/state/county, Foreign postal code. Your social security number and Spouse’s social security number. The instruction below it reads, “Make sure your SSN(s) above and on line 6c are correct” and “Presidential Election Campaign: Check here if you, or your spouse is filling jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.” (each option is preceded by a tick box) You; spouse. Second section, Filing status (check only one box), shows the following: (each option is preceded by a tick box). Single, married filing jointly (even if only one had income). Married filing separately. Enter spouse’s SSN above and full name here (entry field). 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 (entry field). Qualifying widow(er) with dependent child (see instructions). Third section, Exemptions shows the following instruction: If more than six dependents, see instructions. The instruction is followed by to be filled-in fields for the subsequent: 6a. (each option is preceded by a tick box) Yourself. If someone can claim you as a dependent, do not check box 6a. b. Spouse. c. Dependents shows a table with the following column headers: First and Last name. social security number, relationship to you, Check, if child under age 17 qualifying for child tax credit (see instructions) (all the rows in this column has a tick box each). Total number of exemptions claimed. The following information is against the table. It shows to be filled-in fields for the subsequent: 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), Dependents on 6c not entered above, and Add numbers on lines above. Fourth section, Income, shows the following instruction: (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): The instruction is followed by to be filled-in fields for the subsequent: Wages, salaries, tips, etc. Attach Form(s) W-2. 8a. Taxable interest. Attach Schedule B if required. b. Tax exempt interest. Do not include on line 8a. 9a. Ordinary dividends. Attach Schedule B if required. b. Qualified dividends. 10. Taxable refunds, credits, or offsets of state and local income taxes. 11. Alimony received. 12. Business income or (loss). Attach Schedule C or C-EZ. 13. Capital gain or (loss). Attach Schedule D if required. If not required. Check here (check box). 14. Other gains or (losses), Attach Form 4797, 15a. IRA distributions. b. Taxable amount. 16a. Pensions and annuities. b. Taxable amount. 17. Rental real estates, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 18. Farm income or (loss). Attach Schedule F. 19. Unemployment compensation. 20a. Social security benefits, (Fill-in blank), b. Taxable amount. 21. Other income. List type and amount. 22. Combine the amounts in the far right column for line 7 through 21. This is your total income. Fifth section, Adjusted Gross Income, shows to be filled-in fields for the following: 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.Deductible part of self-employment tax. Attach schedule SE. 28.Self-employed SEP, SIMPLE, and qualified plans. self-employed health insurance deduction. 30. Penalty on early withdrawal of savings. 31.Alimony paid, b. Recipient’s SSN. 32.IRA deduction.33. Student loan interest deduction. 34. Tuition and fees. Attach Form 8917. 35. Domestic production activities deduction. Attach Form 8903. add lines 23 through 35. 37. Subtract line 36 from line 22. This is your adjusted gross income. A foot note below the form reads, “For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions, Cat. No. 11320B, Form 040(2016).” Sixth section, Tax and Credits, shows to be filled-in fields for the following: 38.Amount from line 37 (adjusted gross income). 39a. Check if: (each option is preceded by a tick box) You were born before January 2, 1952, Blind, Spouse was born before January 2, 1952, Blind , and Total boxes checked (tick box). b. If your spouse itemizes on a separate return or you were a dual-status alien, check here (tick box). 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 - 6,300 Married filing jointly or Qualifying widow(er) - 12,600, Head of household - 9,250. 40. Itemized deductions (from Schedule A) or your standard deduction (see left margin) 41. Subtract line 40 from line 38. 42. Exemptions. If line 38 is 154,950 or less, multiply $4,000 by the number on line 6d. Otherwise, see instructions. 43. Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter 0. A continuation of the income tax return form. Tax (see instructions). Check if any from: (each option is followed by a tick box) a. Form(s) 8814 b, and Form 4972 c. 45. Alternative minimum tax (see instructions). Attach Form 6251. 46. Excess advance premium tax credit repayment. Attach Form 8962. 47. Add lines 44, 45, and 46. 48. Foreign tax credit. Attach Form 1116 if required. 49. Credit for child and dependent care expenses. Attach Form 2441. 50.Education credits from Form 8863, line 19. 51. Retirement savings contributions credit. Attach Form 8880. 52. Child tax credit. Attach Schedule 8812, if required. Residential energy credits. Attach Form 5695. Other credits from Form: (each option is followed by a tick box) a. 3800, b. 8801, and c. Add lines 48 through 54. These are your total credits. 56.s ubtract line 55 from line 47. If line 55 is more than line 47, enter 0 . Seventh section, Other Taxes, shows to be filled-in field for the following: Self-employment tax. Attach Schedule SE. Unreported social security and Medicare tax from Form: (each option is followed by a tick box) a. 4137 b. 8919. 59. Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required a. Household employment taxes from Schedule H. b. First-time homebuyer credit repayment. Attach Form 5405 if required. Health care: individual responsibility (see instructions) Full-year coverage. Taxes from: (each option is followed by a tick box) a. Form 8959, b. Form 8960, and c. Instructions; enter code(s).63. Add lines 56 through 62. This is your total tax. Eighth section, Payments, s hows to be filled-in fields for the following: 64. Federal income tax withheld from Forms W-2 and 1099. 65. 2015 estimated tax payments and amount applied from 2014 return. 66a. Earned income credit (EIC) (If you have a qualifying child, attach Schedule EIC). Nontaxable combat pay election. 67. Additional child tax credit. Attach Schedule 8812. 68. American opportunity credit from Form 8863, line 8. 69. Net premium tax credit. Attach Form 8962. 70. Amount paid with request for extension to file. 71. Excess social security and tier 1 RRTA tax withheld. 72. Credit for federal tax on fuels. Attach Form 4136. 73. Credits from Form: (each option is followed by a tick box) a. 2439, b. Reserved, and c, and 8885 d. 74. Add lines 64, 65, 66a, and 67 through 73. These are your total payments. Ninth section, Refund, shows to be filled-in forms for the following: 75. If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid. 76a. Amount of line 75 you want refunded to you. If Form 8888 is attached, check here. An arrow from the line points to a tick box. b. Routing number. c. Type: (each option is followed by a tick box)Checking; Savings d. Account number. 77. Amount of line 75 you want applied to your 2017 estimated tax,Tenth section, Amount You Owe, shows to be filled-in fields for the following: 78. Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions. 79. Estimated tax penalty (see instructions). Eleventh section, Third Party Designee shows to be filled-in field for the following: Do you want to allow another person to discuss this return with the IRS (see instructions)? (each option is followed by a tick box)Yes. Complete below; No Designee’s name, Phone no, and Personal identification number (PIN):Twelfth section, Sign Here shows to be filled-in fields for the following: (Joint return? See instructions. Keep a copy for your records).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, Spouse’s signature, If a joint return, both must sign, Date, Spouse’s occupation, and if the IRS sent you an Identity Protection PIN, enter it here (see inst.). Last section, Paid Preparer Use Only, shows to be filled-in field for the following: Print/Type preparer’s name, Preparer’s signature, Date, Check (tick box) if self-employed, PTIN, Firm’s name, Firm’s address, Firm’s EIN, Phone no. A watermark on the form reads, “DRAFT AS OF July, 11, 2019 DO NOT FILE.”Enlarge ImageA form shows additional income and adjustments to income. Taxable refunds, credits, or offsets of state and local income taxes. Part 1 additional income: Alimony received. Business income or (loss). Attach Schedule C or C-EZ. Capital gain or (loss). Other gains or (losses), taxable amount, Pensions and annuities, Taxable amount, rental real estates, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E, Farm income or (loss). Attach Schedule F. Unemployment compensation, Social security benefits, (Fill-in blank), b. Taxable amount, Other income. List type and amount .Combine the amounts in the line 1 through 8. Part 4: Adjustments to income: Educator expenses, 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, Deductible part of self-employment tax. Attach schedule SE, Self-employed SEP, SIMPLE, and qualified plans, Self-employed health insurance deduction, Penalty on early withdrawal of savings, Alimony paid, b. Recipient’s SSN, IRA deduction, Student loan interest deduction, Tuition and fees. Attach Form 8917, Domestic production activities deduction. Attach Form 8903, Add lines 10 through 21. These are your adjustments to income. Enter here and on form 1040 0r 1040 SR line A.Enlarge ImageA form shows additional credits and payments. Part 1: Non refundable credits: Foreign tax credit. Attach Form 1116 if required, Credit for child and dependent care expenses. Attach Form 2441, Education credits from Form 8863, line 19, Retirement savings contributions credit. Attach Form 8880, Child tax credit. Attach Schedule 8812, if required, Residential energy credits. Attach Form 5695, Other credits from Form: (each option is followed by a tick box) a. 3800, b. 8801, and c. Add lines 1 through 6. These are your total credits. Part 2: Other payments and refundable credits: 2019 estimated tax payments and amount applied from 2018 return. Net premium tax credit. Amount paid with request for extension to file, Excess social security and tier 1 RRTA tax withheld, Credit for federal tax on fuels. Credits from Form: (each option is followed by a tick box) a. 2439, b. Reserved, and c, and 8885 d. Add lines 8 through 13. These are your total payments.Enlarge ImageForm 1040 shows Profit or Loss from Business. The form is divided into seven sections. The header from left to right shows the following: Schedule C (Form 1040), Department of the Treasury Internal Revenue Service (99). Profit or Loss From Business (sole proprietorship), Information about Schedule C and its separate instructions is at www.irs.gov.schedulec; Attach to Form 1040, 1040NR, or 1041; partnerships generally must file form 1065, OMB No. 1545-0074, Attachment sequence No. 09. Second section shows to be filled-in fields for the following and line B is highlighted. Name of proprietor.Principal business or profession, including product or service (see instructions). Enter code from instructions: (Entry field). Business name. If no separate business name, leave blank. Employer ID number (EIN), (see instr.): (Entry field). Business address (including suite or room no), City, town or post office, state and Zip code. The options for the lines F,G, I, and J are preceded by a tick box each. Accounting method: (1) Cash, (2) Accrual, (3) Other (specify). Did you “materially participate” in the operation of this business during 2016? If “No” see instructions for limit on losses Yes; No. If you started or acquired this business during 2016, check here. Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) Yes; No. If “Yes” did you or will you file required Forms 1099? Yes; No. Third section,Part I – Income shows to be filled-in fields for the following: 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. An arrow from the line points to a tick box. Returns and allowances. Subtract line 2 from line 1. 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). Gross income. Add lines 5 and 6. Fourth section, Part II – Expenses shows to be filled-in fields for the following: Advertising. Car and truck expenses (see instructions). commissions and fees. Contract labor (see instructions). Depletion. Depreciation and section 179 expense deduction (not included in Part III) (see instructions). Employee benefit programs (other than health). Insurance (other than health). Interest: a Mortgage (paid to banks, etc.). b Other. Legal and professional services. Office expense (see instructions). Pension and profit-sharing plans. Rent or lease (see instructions): Vehicles, machinery and equipment. Other business property Repairs and maintenance. Supplies (not included in Part III). Taxes and licenses. Travel, meals and entertainment: Travel Deductible meals and entertainment (see instructions). Utilities. Wages (less employment credits). 27a. Other expenses (from line-48). Reserved for future use. Total expenses before expenses for business use of home. Add lines 8 through 27a. Tentative profit or (loss). Subtract line 28 from line 7. 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 filters only: enter the total square footage of: (a) your home: [Blank write-on line] and (b) the part of your home used for business: [Blank write-on line]. Use the simplified method worksheet in the instructions to figure the amount to enter on line 30. 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. 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, for 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 6196. Your loss may be limited. The lines 32a and 32b is preceded by a tick box each. 32 a. All investment is at risk. 32 b. Some investments is not at risk. A foot note below the form reads, “For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P, Schedule C (Form 1040) 2016.”Enlarge ImageContinuation of form 1040 shows Profit or Loss from Business. Part III – Cost of Goods sold shows to be filled-in fields for the following: The options for the lines 33 and 34 are preceded by a tick box each. Method(s) used to Value closing inventory: a. Cost, b. Lower of cost or market, and c. Other (attach explanation). Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If “Yes” attach explanation Yes; No. Inventory at beginning of year. If different from last year’s closing inventory, attach explanation. Purchases less cost of items withdrawn for personal use. Cost of labor. Do not include any amounts paid to yourself. Materials and supplies. Other costs. Add lines 35 through 39. Inventory at end of year. Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4. Sixth section, Part IV – Information on Your Vehicle shows to be filled-in fields for the following: 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. When did you place your vehicle in service for business purposes? (month, day, year). Of the total number of miles you drove your vehicle during 2016, enter the number of miles you used your vehicle for: a. Business, b. Commuting (see instructions), c. Other. The options for the lines from 45 to 47 are preceded by a tick box each. Was your vehicle available for personal use during off-duty hours? Do you (or your spouse) have another vehicle available for personal use? 47a. Do you have evidence to support your deduction? If “Yes” is the evidence written? Seventh section, Part V – Other Expenses shows to be filled-in fields for the following: List below business expenses not included on lines 8-26 or line 30. Total other expenses. Enter here and on line 27a. A watermark on the form reads, “DRAFT AS OF August 7, 2019 DO NOT FILE.”Enlarge ImageEnlarge ImageEnlarge ImageForm 8949 shows Sale and Other Dispositions of Capital Assets. The form is divided into three sections. The Header shows the following information from left to right: Sales and Other Dispositions of Capital Assets, Information about Form 8949 and its separate instructions is at www.irs.gov/form8949, File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D, Name(s) shown on return, and Social security number or taxpayer identification number: (Before you check box A, B, or C 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 will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.). The second section, Part I, shows information followed by a table. Short-Term Transactions involving capital assets you held 1 year or less are short term. For long-term transactions, see page 2. Note: You may aggregate all short-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 totals directly on Schedule D, line 1a; you aren’t required to report these transactions on Form 8949 (see instructions). You must check box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-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. (each option is preceded by a tick box). (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above). (B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS.(C) Short-term transactions not reported to you on Form 1099-B. The table 1 shows the following column headers: Description of property (Example: 100 sh. XYZ Co.). Date acquired (Mo., day, yr.). Date sold or disposed of (Mo., day, yr.). Proceeds (sales price) (see instructions) Cost or other basis. See the Note below and see Column (e) in the separate instructions. The following column header is sub-divided into (f) and (g). (Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions.). Code(s) from instructions Amount of adjustment. Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g). 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 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked). The note below section two reads, “If you checked Box A 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.” A foot note below the form reads, “For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z, Form 8949 (2016)”Enlarge ImageName(s) shown on return: Name and SSN or taxpayer identification no: (not required if shown on other side.) Social security number or taxpayer identification number: (Before you tick 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 will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.). The third section, Part II, shows information followed by a table. 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 totals directly on Schedule D, line 8a; you aren’t required to report these transactions on Form 8949 (see instructions). You must tick 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. (each option is preceded by a tick box). (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. The column headers for the table is same as the column headers of the table in Part 1. 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). 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. A watermark on the form reads, “DRAFT AS OF July 25, 2019 DO NOT FILE.”Enlarge ImageForm 1040A or 1040 shows Interest and Ordinary Dividends. The form is divided into four sections. The header from left to right shows the following: SCHEDULE B (Form 1040A or 1040). Department of the Treasury, Internal revenue service (99); Interest and ordinary dividends, Attach to Form 1040A or 1040, Information about Schedule B and its instructions is at www.irs.gov/scheduleb; and OMB No. 1545-0074, 2016 Attachment sequence No. 08, Name(s) shown on return and your social security number. The second section, part I interestshows the following instructions: (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. The instructions are followed by to be filled-in fields for the subsequent: 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. Add the amounts on line 1. Excludable interest on series EE and 1 U.S. savings bonds issued after 1989. Attach Form 8815. Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a. To be filled-in fields for Amount exists against the part I. The third section, part II ordinary dividends shows the following instructions: (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a). 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. The instructions are followed by to be filled-in fields for the subsequent: List name of payer Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a. note: If line 6 is over $1,500, you must complete part III. To be filled-in fields for Amount exists against the part II. The fourth section, part III foreign accounts and trusts shows the following instruction: (See instruction on back.). 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. 7a. At any time during 2016, 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), 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. 8. During 2016, 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. To be filled-in fields for Yes and No exists against the part III. A foot note below the form reads, “For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2016” A watermark on the form reads, “DRAFT AS OF July 24, 2019 DO NOT FILE.”Enlarge ImageForm 8829 shows Expenses for Business Use of Your Home. The form is divided into five sections. The header from left to right shows the following information: Form 8829, Department of the Treasury, Internal Revenue Service (99), Expenses for Business Use of Your Home, File only with Schedule C (Form 1040). Use a separate Form 8829 for each home you used for business during the year, Information about Form 8829 and its separate instructions is at www.irs.gov/form8829, OMB No. 1545-0074, 2016, Attachment sequence No. 176, Name(s) of proprietor(s), and Your social security number. Second section, Part I: Part of Your Home Used for Business shows to be filled-in fields for the following: Area used regularly and exclusively for business, regularly for daycare, or for storage of inventory or product samples (see instructions). Total area of home. Divide line 1 by line 2. Enter the result as a percentage. For daycare facilities not used exclusively for business, go to line 4. All others, go to line 7. Multiply days used for daycare during year by hours used per day 4 hr. Total hours available for use during the year (365 days x 24 hours) (see instructions). Divide line 4 by line 5. Enter the result as a decimal amount. Business percentage. For daycare facilities not used exclusively for business, multiply line 6 by line 3 (enter the result as a percentage). All others, enter the amount from line 3. The third section shows, Part II: Figure Your Allowable Deduction shows to be filled-in fields for the following: Enter the amount from Schedule C, line 29, plus any gain derived from the business use of your home,minus any loss from the trade or business not derived from the business use of your home (see instructions) See instructions for columns (a) and (b) beforecompleting lines 9–21. Line from 9 to 12 should be answered in a table against the lines. The column headers are (a) Direct expenses and (b) Indirect expenses. Casualty losses (see instructions). Deductible mortgage interest (see instructions).Real estate taxes (see instructions). Add lines 9, 10, and 11. Line 13 should be answered under (b) Indirect expenses. multiply line 12, column (b) by line 7. Add line 12, column (a) and line 13. Subtract line 14 from line 8. If zero or less, enter -0- 15. line from 16 to 22 should be answered under (a) Direct expenses and (b) Indirect expenses. Excess mortgage interest (see instructions).Insurance. Rent, Repairs and maintenance ,utilities, Other expenses (see instructions), Add lines 16 through 21, Lines 23, 24, 28, 29, and 30 should be answered under (b) Indirect expenses, Multiply line 22, column (b) by line 7, Carryover of prior year operating expenses (see instructions), Add line 22, column (a), line 23, and line 24. Allowable operating expenses. Enter the smaller of line 15 or line 25. Limit on excess casualty losses and depreciation. Subtract line 26 from line 15. Excess casualty losses (see instructions). Depreciation of your home from line 41 below. Carryover of prior year excess casualty losses and depreciation (seeinstructions) . Add lines 28 through 30. Allowable excess casualty losses and depreciation. Enter the smaller of line 27 or line 31. Add lines 14, 26, and 32. Casualty loss portion, if any, from lines 14 and 32. Carry amount to Form 4684 (see instructions). Allowable expenses for business use of your home. Subtract line 34 from line 33. Enter hereand on Schedule C, line 30. If your home was used for more than one business, see instructions. Fourth section, Part III: Depreciation of Your Home shows to be filled-in fields for the following: Enter the smaller of your home’s adjusted basis or its fair market value (see instructions). Value of land included on line 36. Basis of building. Subtract line 37 from line 36 Business basis of building. Multiply line 38 by line 7. Depreciation percentage (see instructions). Depreciation allowable (see instructions). Multiply line 39 by line 40. Enter here and on line 29 above 41. Fifth section,Part IV: Carryover of Unallowed Expenses to 2016 shows to be filled-in fields for the following: Operating expenses. Subtract line 26 from line 25. If less than zero, enter -0- Excess casualty losses and depreciation. Subtract line 32 from line 31. If less than zero, enter -0. A foot note below the form reads, “For Paperwork Reduction Act Notice, see your tax return instructions, Cat. No. 13232M, Form 8829, (2016)” A watermark on the form reads, “DRAFT AS OF July 5, 2019 DO NOT FILE.”