George Large (SSN 414-33-5688, age 45), and his wife Marge Large

George Large (SSN 414-33-5688, age 45), and his wife Marge Large (SSN 555-81-9495, age
43), who live at 2000 Lakeview Drive, Cleveland, OH 49004, want you to prepare their 2015
income tax return based on the information below.
George Large worked as a salesman for Toys, Inc. He received a salary of $80,000 ($8,500 of
federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense
reimbursement from Toys of $5,000 to cover his employee business expenses. George must
make an adequate accounting to his employer and return any excess reimbursement.
Additionally, Toys provides George with medical insurance worth $7,200 per year. Marge is
covered by this insurance as a spouse. George drove his car 24,000 miles during the year. His
log indicates that 18,000 miles were for sales calls to customers at the customer’s offices and
the remainder was personal mileage. George uses the standard mileage rate method. Assume
his business miles were driven equally during the year. George is a professional basketball
fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game,
and they discuss a little business at the games. George takes clients to business lunches. His
log indicates that he spent $1,500 on these business meals. George also took a five-day trip to
Toys headquarters in Musty, Ohio. He was so well-prepared that he finished his business in
three days, so he spent the other two days sightseeing. He had the following expenses during
the five days of his trip:
Airfare $200
Lodging $85/day
Meals $50/day
Taxicab $20/day
Marge Large is self-employed. She makes custom quilts in the basement of their home, which
is 25% of the house’s square footage (2,000). She started using the basement for this quilting
business when they moved in. She had the following income and expenses in 2015:
Income from quilt making $12,000
Cost of materials & supplies $5,000
Contract labor $3,500
Long distance phone calls (business) $500
The Large’s home cost a total of $150,000, of which the cost of the land was $20,000. The
FMV of the house is $225,000. They have owned their house for 10 years. The house is a
depreciable over a 39 year recovery period. The Larges incurred other expenses in 2015:
Utility bills for the house $2,000
Real estate taxes $2,500
Mortgage interest $4,500
Cash charitable contributions $3,500
Prepare Form 1040, Schedules A and C for Form 1040, and Forms 2106 and 8829 for the
2015 tax year. Assume that no estimated taxes were paid by the Larges.