Thomas owns a business in which he rents warehouse space to customers. The business is a sole proprietorship and is called "Thomas Storage". (Catchy

$15

Thomas must use the company vehicles to run various business errands including meeting with customers.

The following information is for the vehicles that were used at the business during the tax year:

Vehicle 1

Vehicle 2

Total Mileage

15,705

13,010

Business Mileage

15,705

6,302

Personal mileage

0

6,708

Gas

$1,470

$1,356

Oil

450

300

Insurance

731

731

Registration

50

50

Speeding Tickets

199

0

Parking Tickets

0

50

Parking Fees (All business)

555

233

Tolls (All business)

475

365

During the year Thomas needed to travel to Las Vegas for a landlord conference. The company paid all his expenses. He spent 3 days at the conference and 2 days playing craps at the casino. The expenses of the trip were as follows:

Airfare

$2,000

Hotel (per night)

200

Total Cab Fare to/from conference

100

Meals daily

110

Limo to go play craps 

300

Registration fee for conference 

600

The office supplies inventory at the company for the year was as follows:

Beginning of year              

$321

Purchases during year       

$735

End of year                          

$472

Used                                       

$584

Thomas is very active in his local political party. During the year the business donated $300 to a local political candidate. 

The business has one employee, Jadee, who take care of the warehouse. Jadee's salary for the year is $50,000 and is all paid by December 31 of the current tax year. In addition the company must pay the following for employing Jadee(also fully paid by December 31 of the current tax year):

FICA and Medicare Tax (Employer Match)

$3,825

Employer unemployment taxes

210

Workman's compensation insurance

761

Employee health insurance premiums

8,008

Thomas also went on a trip to learn more about the management of a warehouse. He flew to Houston Texas for a 2 day conference called : Managing a Warehouse.  Unfortunately, he was only able to attend the conference while there and not see any of the sights Houston has to offer. The expenses that the company paid for this trip were as follows:

Airfare:$1,444Hotel per night:150Meals per day125

In addition the company paid in cash during the tax year the following for the warehouse:

Rent

$15,500

Cleaning

$1,645

Electricity

$3,787

Water

$  455

Gas (Heat)

$7,989

Sewer/ Trash

$3,078

Phone/ Internet

$ 567

Insurance

$2,899

Note: The insurance coverage is from February 1 of current tax year to February 1 of next tax year.

The final expenses that the company paid by December 31 of the current tax year were as follows:

Accountant for preparation of tax return$2,190Lawyer for Thomas's Divorce    $4,700Interest charge on Business Line of Credit$6,439

Requirement:

Complete the schedule C and Schedule SE for Thomas Storage for the current tax year (2016) . Include all calculations and assumptions made during the preparation of the tax return. (Tax law is not required)