Advanced Scenario 8: Enrique Clayton

Directions
Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario.
Note: When using the Link & Learn Taxes Practice Lab, complete the Social Security
numbers and employer identification numbers by replacing the Xs with your User ID. In
classroom situations, replace the Xs with the numbers provided by your instructor.

Interview Notes
Enrique works as a customer service employee during the day. He also has a business as a personal trainer. After work, he travels to teach classes at the gym five
days a week.
Enrique is a cash-basis taxpayer who materially participates in the operation of his
business. He did not make any payments that would require him to file Form 1099.
Enrique uses business code 713900.
He received Form 1099-MISC for classes he taught at the gym. He had an additional $3,729 cash income in tips and payments from individual clients.
He has a written mileage log showing the following miles for 2015. All his travel is
within his local commuting area.
3,750 miles from home to his main job
2,750 miles from his main job to the gym
1,200 miles from the gym each day to his home
The total mileage on his car for 2015 was 11,000 miles. He placed his car in service
on January 6, 2010. He always takes the standard mileage rate. This is Enriques
only car and it was available for personal use.
Enrique has records for other expenses relating to his business:
Advertising: $300
Supplies: $1,000
Nutritional supplements for his own consumption: $675
Business liability insurance: $610
Business license: $150
Enrique has a statement from his church stating he donated $500 in 2015.
Enrique has receipts for an eye exam for $80 and prescription contact lenses for
$300.
This year, Enrique will deduct state income tax on Schedule A. Last year, he
deducted state sales tax instead of state income tax.
Enriques school loan was for qualified education expenses at an eligible institution.

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 Enrique has never taken a distribution from a retirement account and he was not a
full-time student during 2015.
Enrique has health insurance through his employer that qualifies as minimum
essential coverage.

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