COVER PAGE Filing Checklist For 2008 Tax Return Filed On Standard Forms Prepared on: 05/27/2010 08:12:32

pm Return: C:\Users\Aura\Documents\TaxCut\David Lee 2008 Tax Return2.T08

To file your 2008 tax return, simply follow these instructions: Step 1 - Sign and date the return Because you're filing a joint return, David and Betty both need to sign the tax return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848, Power of Attorney and Declaration of Representative. Step 2 - Assemble the return These forms should be assembled behind Form 1040 --U.S. Individual Income Tax Return - Schedule A - Schedule B - Schedule C - Schedule D - Schedule E - Schedule SE - Form 8829 - Form 4562 Staple these documents to the front of the first page of the return: Form W-2: Wage and Tax Statement 1st (Cal State) Step 3 - Mail the return Mail the return to this address: Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0002 We recommend that you use one of these IRS-approved methods to send your return. Retain the proof of mailing to avoid a late filing penalty: - U.S. Postal Service certified mail. - DHL Same Day Service, Next Day 10:30 am, Next Day 12:00 pm, Next Day 3:00 pm, or 2nd Day Service. - FedEx Priority Overnight, Standard Overnight, 2Day, International Priority, or International First. - United Parcel Service Next Day Air, Next Day Air Saver, 2nd Day Air, 2nd Day Air A.M., Worldwide Express Plus, or Worldwide Express. Step 4 - Keep a copy Print a second copy of the return for your records. We recommend that you also print and retain these supporting forms, which don't need to be sent to the IRS: - - Background Worksheet - - Dependents Worksheet - - Last Year's Data Worksheet - - Form 1099-INT/OID - - Form 1099-DIV - - Home Mortgage Interest Worksheet - - Charitable Worksheet - - IRA Contributions - - Depreciation Summary - - Depreciation Worksheet - - Vehicle Worksheet - - Rentals & Royalties 2008 Tax Return Information. Keep this for your records. Here is some additional information about your 2008 return. Keep this information with your records. You will need your 2008 AGI to electronically sign your return next year. Quick Summary Total (Gross) Income Adjusted Gross Income Taxable Income $122,185 108,943 74,598

Total Federal Tax Total Payments Penalties Refund Amount Amount You Owe

18,937 21,250 0 2,313 $0

* Your long-term capital gains and qualifying dividends are taxed at a lower rate than your other income. As a result, your total federal tax is less than the tax shown on the IRS's Tax Table.

F o r m

1040
L A B E L H E R E

Department of the TreasuryInternal Revenue Service

U.S. Individual Income Tax Return

For the year Jan. 1Dec. 31, 2008, or other tax year beginning

2008

(99)

IRS Use OnlyDo not write or staple in this space. , 20

, 2008, ending

Label
(See instructions.) Use the IRS label. Otherwise, please print or type.

Your first name and initial

Last name

OMB No. 1545-0074 Your social security number

David Betty 641 Cody Way

R N

Lee
Last name

111-11-1111
Spouse's social security number

If a joint return, spouse's first name and initial

Lee
Apt. no.

123-45-6789
You must enter your SSN(s) above. Checking a box below will not change your tax or refund

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, see instructions.

Casper
1 2 3 Single

WY

82609
4

Presidential Election Campaign

Check here if you, or your spouse if filing jointly, want $3 to go to this fund (see instructions)

You

Spouse

Filing Status
Check only one box.

Married filing jointly (even if only one had income) Married filing separately. Enter spouse's SSN above and full name here. 5

Head of household (with qualifying person). (See instr.) If the qualifying person is a child but not your dependent, enter this child's name here. Qualifying widow(er) with dependent child (see instructions) . . . . . . .
Boxes checked on 6a and 6b

Exemptions

6a b c

X X

Yourself. If someone can claim you as a dependent, do not check box 6a

2 3

Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Last name (2) Dependent's social security number (3) Dependent's relationship to you (4) X if qualifying child for child tax credit (see instr.)

Dependents:
(1) First name

No. of children on 6c who:

did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on

If more than four dependents, see instructions.

Vivian Meredith Kirby Toby

Newman Lee Lee Lee

111-11-1111 111-11-1111 111-11-1111 111-11-1111

Parent Daughter Daughter Son

lived with you

Income
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. Enclose, but do not attach, any payment. Also, please use Form 1040-V.

d Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lines above 7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . 8a 0 b Tax-exempt interest. Do not include on line 8a . . . . . . . . . . . . . . 8b 9a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . 9a 700 9b b Qualified dividends (see instructions) . . . . . . . . . . . . . . . . . . . 10 Taxable refunds, credits, or offsets of state and local income taxes (see instructions) . . . . . . . 10 11 Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . . . . . . . . . . . . 13 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 b Taxable amount (see inst.) 15b 15a IRA distributions . . . . . . . . . . . . . . 15a b Taxable amount (see inst.) 16b 16a Pensions and annuities . . . . . . . . . . . 16a 17 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20a 20a Social security benefits . . . . . . b Taxable amount (see inst.) 20b JURY _ _ _ 21 Other income. List type and amount (see instructions) _ _ _ _ _ _ PAY _ _ _ _ _ _ _ _ _ _ _ _ _ _ 21 22 Add the amounts in the far right column for lines 7 through 21. This is your total income . . . . 22 23 24 25 26 27 28 29 30 31a 32 33 34 35 Educator expenses (see instructions) . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . One-half of self-employment tax. Attach Schedule SE . . . . . . Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . Self-employed health insurance deduction (see instructions) . . Penalty on early withdrawal of savings . . . . . . . . . . . . . . Alimony paid b Recipient's SSN IRA deduction (see instructions) . . . . . . . . . . . . . . . . . Student loan interest deduction (see instructions) . . . . . . . . Tuition and fees deduction. Attach Form 8917 . . . . . . . . . . Domestic production activities deduction. Attach Form 8903 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 25 26 27 28 29 30 31a 32 33 34 35

6 38,000 6,300 700 0 62,870 11,000 0 0 2,895 0

420 122,185

0 0 0 0 4,442 0 3,800 0 5,000 0

36 37

Adjusted Gross Income

KIA

36 Add lines 23 through 31a and 32 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see instructions.

13,242 108,943 Form 1040 (2008)

Form 1040 (2008)

David
38 39a

R Lee

111-11-1111
38

Tax and Credits

Standard Deduction for People who checked any box on line 39a, 39b, or 39c or who can be claimed as a dependent, see instructions All others: Single or Married filing separately, $5,450 Married filing jointly or Qualifying widow(er), $10,900 Head of household, $8,000

Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Blind. Check Total boxes You were born before January 2, 1944, 0 checked 39a if: Blind. Spouse was born before January 2, 1944, b If your spouse itemizes on a separate return, or you were a dual-status alien, see instructions and check here 39b 39c c Check if standard deduction includes real estate taxes or disaster loss (see instructions) . . . . . . . . Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . . . . . Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If line 38 is over $119,975, or you provided housing to a Midwestern displaced individual, see instructions. Otherwise, multiply $3,500 by the total number of exemptions claimed on line 6d . . . Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . . . . . . Tax (see instructions). Check if any tax is from:
a Form(s) 8814 b Form 4972 . . . . . . . . . . . . . . . . . . .

Page 2 108,943

40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61

40 41 42 43 44 45 46

13,345 95,598 21,000 74,598 10,054 0 10,054

Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . . . . . . . . . . . Add lines 44 and 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . . 47 Credit for child and dependent care expenses. Attach Form 2441 Education credits. Attach Form 8863 . . . . 48 49 50 51 52 53 54 Credit for the elderly or the disabled. Attach Schedule R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retirement savings contributions credit. Attach Form 8880 . . . . . . . Child tax credit (see instructions). Attach Form 8901 if required. Credits from Form: a
Other credits from Form: a 8396
Form 3800

0 0 0
55 56 57 58 59 60 61

b b

8839
Form 8801

c c

5695

Add lines 47 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . . Subtract line 55 from line 46. If line 55 is more than line 46, enter -0- . . . . . . . . . . . . . . . Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4137 b 8919 . . . . . . . . Unreported social security and Medicare tax from Form: a Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . . Additional taxes: a AEIC payments b Household employment taxes. Attach Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . Add lines 56 through 60. This is your total tax

Other Taxes

0 10,054 8,883 0 0 0 18,937

Payments
If you have a qualifying child, attach Schedule EIC.

62 63 64a b 65 66 67 68 69 70 71 72 73a b d 74 75 76

5,100 62 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . 16,150 63 2008 estimated tax payments and amount applied from 2007 return . . Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . 64a 64b Nontaxable combat pay election . . . . . 0 65 Excess social security and tier 1 RRTA tax withheld (see instructions) . . 66 Additional child tax credit. Attach Form 8812 . . . . . . . . . . . . . . 67 Amount paid with request for extension to file (see instructions) . . . . . 0 Credits from Form: a 2439 b 4136 c 8801 d 8885 68 First-time homebuyer credit. Attach Form 5405 . . . . . . . . . . . . . 69 Recovery rebate credit (see worksheet in the instructions) . . . . . . . 70 Add lines 62 through 70. These are your total payments . . . . . . . . . . . . . . . . . . . .
If line 71 is more than line 61, subtract line 61 from line 71. This is the amount you overpaid Amount of line 72 you want refunded to you. If Form 8888 is attached, check here Routing number Account number . . . . Savings . . .

Refund
Direct deposit? See instructions and fill in 73b, 73c, and 73d, or Form 8888.

71 72 73a

21,250 2,313 2,313

XXXXXXXXX XXXXXXXXXXXXXXXXX

c Type:

Checking

Amount of line 72 you want applied to your 2009 estimated tax

Amount You Owe Third Party Designee

74 Amount you owe. Subtract line 71 from line 61. For details on how to pay, see the instructions Estimated tax penalty (see instructions) . . . . . . . . . . . . . . . . . 76

0
75

Do you want to allow another person to discuss this return with the IRS (see instructions)?

Yes. Complete the following

No

Sign Here
Joint return?
See instructions.

Designee's Phone Personal indentification name no. number (PIN) 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

Consulting Engineer
Spouse's signature. If a joint return, both must sign. Date Spouse's occupation

Keep a copy for your records.

Paralegal
Preparer's signature Firm's name (or yours if self-employed), address, and ZIP code Date Check if self-employed EIN Phone no. Form 1040 (2008) Preparer's SSN or PTIN

Paid Preparer's Use Only

KIA

SCHEDULES A&B (Form 1040)

Department of the Treasury (99) Internal Revenue Service

Schedule AItemized Deductions

(Schedule B is on page 2)
Attach to Form 1040. See Instructions for Schedules A&B (Form 1040).

OMB No. 1545-0074

Attachment Sequence No.

2008
07

Name(s) shown on Form 1040

Your social security number

David Medical and Dental Expenses Taxes You Paid

(See instructions.)

R Lee
Caution. Do not include expenses reimbursed or paid by others. 5,013 1 1 Medical and dental expenses (see instructions) . . . . . . . . . 108,943 2 2 Enter amount from Form 1040, line 38 . . 8,171 3 3 Multiply line 2 by 7.5% (.075) . . . . . . . . . . . . . . . . . . . 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . .
5 State and local (check only one box)
a b Income taxes, or

111-11-1111

. . . .

2,665

6 7 8 9 10 11

Interest You Paid

(See instructions.)

Note: Personal interest is not deductible.

12 13 14 15

2,480 6 Real estate taxes (see instructions) . . . . . . . . . . . . . . . . 0 7 Personal property taxes . . . . . . . . . . . . . . . . . . . . . . Other taxes. List type and amount _______________ 0 8 ___________________________________ Add lines 5 through 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Home mortgage interest and points reported to you 0 on Form 1098 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address ___________________________________ ___________________________________ 4,400 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 Points not reported to you on Form 1098. See instructions 0 12 for special rules . . . . . . . . . . . . . . . . . . . . . . . . . . 0 13 Qualified mortgage insurance premiums (See instructions) . . . Investment interest. Attach Form 4952 if required. (See instr.) . . . 14 Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
. . . . 16

General sales taxes

5,145

4,400

Gifts to Charity
If you made a gift and got a benefit for it, see instructions.

16 Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . . . . 17 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 18 Carryover from prior year . . . . . . . . . . . . . . . . . 19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . .

3,800

0 . . . . 17 0 18 . . . . . . . . . . . . . . . . . . . .

19 20

3,800 0

Casualty and Theft Losses 20 Job Expenses 21 and Certain Miscellaneous Deductions
(See instructions.)

22 23

Other Miscellaneous Deductions Total 29 Is Form 1040, line 38, over $159,950 (over $79,975 if married filing separately)? Itemized X No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. Deductions
30
KIA
If you elect to itemize deductions even though they are less than your standard deduction, check here

24 25 26 27 28

Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . . . . . . Unreimbursed employee expensesjob travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See instructions.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________ 0 21 ___________________________________ 22 Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . . Other expensesinvestment, safe deposit box, etc. List type and amount _______________________ 540 FEES ETC _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 540 Add lines 21 through 23 . . . . . . . . . . . . . . . . . . . . . . 24 108,943 Enter amount from Form 1040, line 38 . . . 25 26 2,179 Multiply line 25 by 2% (.02) . . . . . . . . . . . . . . . . . . . . Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . . . . . Otherfrom list in the instructions. List type and amount _______________ _______________________________________________

27

28

29

13,345

Yes. Your deduction may be limited. See instructions for the amount to enter.
. .

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Schedule A (Form 1040) 2008

Schedules A&B (Form 1040) 2008 Name(s) shown on Form 1040. Do not enter name and social security number if shown on other side.

OMB No. 1545-0074 Page Your social security number

David

Lee

111-11-1111
Attachment Sequence No.

Schedule BInterest and Ordinary Dividends

Part I Interest
(See the instructions for Form 1040, line 8a.)

08

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 and list this interest first. Also, show that buyer's social security number and address

Amount

Well Fargo Bank of America Note

1,100 400 4,800

1
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.

2 3 4 5

Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 3 from line 2. Enter the result here and on Form 1040, line 8a . List name of payer ______________________________________________

2 3 4

6,300

Note: If line 4 is over $1,500, you must complete Part III.

6,300 Amount 700

Part II Ordinary Dividends

(See the instructions for Form 1040, line 9a.)

David and Betty

5
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.

6 Add the amounts on line 5. Enter the total here and on Form 1040, line 9a Note. If line 6 is over $1,500, you must complete Part III.

700
Yes No

Part III a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Foreign 7a At any time during 2008, did you have an interest in or a signature or other authority over a financial Accounts account in a foreign country, such as a bank account, securities account, or other financial account? and Trusts See instructions for exceptions and filing requirements for Form TD F 90-22.1 . . . . . . . . . . . .
(See instructions.) KIA

You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; or (b) had

. . . . .

b If "Yes," enter the name of the foreign country 8

__________________________

During 2008, 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. . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Schedule B (Form 1040) 2008

SCHEDULE C (Form 1040)

Department of the Treasury (99) Internal Revenue Service

Profit or Loss From Business

(Sole Proprietorship) Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B. Attach to Form 1040, 1040NR, or 1041. See Instructions for Schedule C (Form 1040).

OMB No. 1545-0074

Attachment Sequence No.

2008
09

Name of proprietor

Social security number (SSN)

David
A C E F G H 1

R Lee

111-11-1111
B Enter code from instructions

Principal business or profession, including product or service (see the instructions)

Consulting
Business name. If no separate business name, leave blank. Business address (including suite or room no.) City, town or post office, state, and ZIP code Accounting method: (1)

541990

D Employer ID number (EIN), if any

641 _ _ _ _ Way _ _ _ _ Cody _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Casper

(3)

WY

82609

Cash

(2)

Accrual

Other (specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Did you "materially participate" in the operation of this business during 2008? If "No," see instructions for limit on losses . . .

Yes

No

If you started or acquired this business during 2008, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part I

Income

Gross receipts or sales. Caution. See instructions and check box if: This income was reported to you on Form W-2 and the Statutory employee box on that form was checked, or

. . .
. . . . .

1 2 3 4 5 6 7 18 19 20a 20b 21 22 23 24a 24b 25 26 27

117,620 0 117,620 0 117,620 0 117,620 0

2 3 4 5 6 7 8 9 10 11 12 13

You are a member of a qualified joint venture reporting only rental real estate income not subject to self-employment tax. Also, see instructions for limit on losses. Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of goods sold (from line 42 on page 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . .

Part II

Expenses. Enter expenses for business use of your home only on line 30. 2,400 18 Office expense . . . . . . 8
9 10 11 12

. . . . . . . . .

Car and truck expenses (see instructions) . . . . . . . . . . Commissions and fees Depletion . . . . Contract labor (see instructions) . . . . . . . . . . . Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . . . . . Employee benefit programs (other than on line 19) . . . . . Insurance (other than health) . Interest: Mortgage (paid to banks, etc.) Other . . . . . . . . . . . . . Legal and professional services . . . . . . . . . . . .

5,228 0 0 0

19 20

Pension and profit-sharing plans Rent or lease (see instructions):

a Vehicles, machinery, & equipment . . b Other business property 21 22 23 24 . . . . . . . Repairs and maintenance . . . . . . . Supplies (not included in Part III) . . . Taxes and licenses . . . . . . . . . . Travel, meals, and entertainment: a Travel . . . . . . . . . . . . . . . . . b Deductible meals and entertainment (see instructions) 25 26 27 Utilities . . .

0 0 0 1,200 0 14,320 3,050 860

13 14 15 16a 16b 17

15,319

14 15 16 a b 17 28 29 30 31

0 0 0 0

. . . . . . . . . . . . . . . .

Wages (less employment credits) . . Other expenses (from line 48 on page 2) . . . . . . . . . . . . . . . .

3,620

Total expenses before expenses for business use of home. Add lines 8 through 27 . . . . . . . . . . . . . Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenses for business use of your home. Attach Form 8829 . . . . . . . . . . . . . . . . . . . . . . . . . . Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line 13 (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.

28 29 30

45,997 71,623 8,753

31

62,870

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, and Schedule SE, line 2, or on Form 1040NR, line 13 (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 m ust attach Form 6198. Your loss may be limited. 32a 32b

All investment is at risk. Some investment is not at risk.

KIA

For Paperwork Reduction Act Notice, see the instructions.

Schedule C (Form 1040) 2008

Schedule C (Form 1040) 2008

Part III
33

David R Lee Cost of Goods Sold (see instructions)

a Cost b Lower of cost or market c

111-11-1111

Page

Method(s) used to value closing inventory:

Other (attach explanation)

34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . . . 35 36 37 38 39 40 41 42

Yes

No

35 36 37 38 39 40 41 42

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 page 1, line 4 . . . . .

Part IV

Information on Your Vehicle. 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.

43 44

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 2008, enter the number of miles you used your vehicle for: a Business _ _ _ _ _ _ _ _ _ _ _ _ _ b Commuting (see instructions) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ c Other _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes Yes Yes Yes No No No No

45 46 47a b

Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . . . . . . . . . . . . Do you (or your spouse) have another vehicle available for personal use? Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If "Yes," is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V

Other Expenses. List below business expenses not included on lines 826 or line 30. 240 180 3,200

Trade _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Journal _ Subscript _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Membership Dues ______________________________________________________________ Landscape Models ______________________________________________________________

______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________

48 KIA

Total other expenses. Enter here and on page 1, line 27 . . . . . . . . . . . . . . . . . . . . . . . .

48

3,620
Schedule C (Form 1040) 2008

SCHEDULE D (Form 1040)

Department of the Treasury Internal Revenue Service

Capital Gains and Losses

Attach to Form 1040 or Form 1040NR. (99) See instructions for Schedule D (Form 1040). Use Schedule D-1 to list additional transactions for lines 1 and 8.

OMB No. 1545-0074

Name(s) shown on return

Attachment Sequence No. 12 Your social security number

2008

David Part I

R Lee Short-Term Capital Gains and LossesAssets Held One Year or Less
(a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold (Mo. day, yr.) (d) Sales price (see the instructions)

111-11-1111

(e) Cost or other basis (see the instructions)

(f) Gain or (loss) Subtract (e) from (d)

2 3

Enter your short-term totals, if any, from Schedule D-1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total short-term sales price amounts. Add lines 1 and 2 in column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 3

0 0
. . . 4 5 6 7

4 5 6

Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824

Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain or (loss). Combine lines 1 through 6 in column (f) . . . . . . . . . . . . .

-4,000 ) -4,000

Part II

Long-Term Capital Gains and LossesAssets Held More Than One Year
(a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold (Mo. day, yr.) (d) Sales price (see the instructions) (e) Cost or other basis (see the instructions) (f) Gain or (loss) Subtract (e) from (d)

9 10 11 12

Enter your long-term totals, if any, from Schedule D-1, 0 9 line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total long-term sales price amounts. Add lines 8 and 9 in 0 10 column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital gain or (loss). Combine lines 8 through 14 in column (f). Then go to Part III on page 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see Form 1040 or Form 1040NR instructions.

11 12 13 14 15

13 14 15
KIA

15,000 ( 0) 15,000

Schedule D (Form 1040) 2008

Schedule D (Form 1040) 2008

David

R Lee

111-11-1111

Page

Part III
16

Summary
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Combine lines 7 and 15 and enter the result

11,000

If line 16 is: A gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. A loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. Zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? X Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Are lines 18 and 19 both zero or blank? X Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040 (or in the Instructions for Form 1040NR). Do not complete lines 21 and 22 below. No. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21 and 22 below. If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) 18

0 0

19

19

20

21

. . . . . . . . . . . . . . . . . . . . . . . . .

21 (

Note. When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040 (or in the Instructions for Form 1040NR). No. Complete the rest of Form 1040 or Form 1040NR.
KIA Schedule D (Form 1040) 2008

SCHEDULE E (Form 1040)

Department of the Treasury (99) Internal Revenue Service

Supplemental Income and Loss

(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Attach to Form 1040, 1040NR, or Form 1041. See Instructions for Schedule E (Form 1040).

OMB No. 1545-0074

Attachment Sequence No.

2008
13
No

Name(s) shown on return

Your social security number

David R Lee Part I Income or Loss From Rental Real Estate and Royalties
1
A B C

111-11-1111

Note. If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.

List the type and location of each rental real estate property:

Rental House 100.0% 4620 Cottonwood Lane Casper WY

Income:
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Rents received . . . . . . . . . . . Royalties received . . . . . . . . . Advertising . . . . . . . . . . . . Auto and travel (see instructions) Cleaning and maintenance . . . Commissions . . . . . . . . . . Insurance . . . . . . . . . . . . Legal and other professional fees Management fees . . . . . . . . Mortgage interest paid to banks, etc. (see instructions) . . . . . . Other interest . . . . . . . . . . . Repairs . . . . . . . . . . . . . . Supplies . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . Other (list) . . . . . . . . . . . . . 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

For each rental real estate property Yes listed on line 1, did you or your family use it during the tax year for personal A purposes for more than the greater of: 14 days or 10% of the total days rented at B fair rental value? (See instructions.) C Properties Totals 2
B C

(Add columns A, B, and C.)

28,600 0 0 0 1,200 0 3,100 0 0 0 0 800 0 2,400 0 0 0 0 0

3 4

28,600 0

Expenses:

12

18

19 20 21 22

23

24 25 26

7,500 0 0 19 Add lines 5 through 18 . . . . . . . Depreciation expense or depletion 18,205 20 (see instructions) . . . . . . . . . 25,705 0 0 Total expenses. Add lines 19 and 20 21 Income or (loss) from rental real estate or royalty properties. Subtract line 21 from line 3 (rents) or line 4 (royalties). If the result is a (loss), see instructions to find out 2,895 0 0 22 if you must file Form 6198 . . . . . Deductible rental real estate loss. Caution. Your rental real estate loss on line 22 may be limited. See instructions to find out if you must file Form 8582. Real estate professionals must complete line 0) ( 23 ( ) ( ) 43 on page 2 . . . . . . . . . . . . Income. Add positive amounts shown on line 22. Do not include any losses . . . . . . . . . . . . Losses. Add royalty losses from line 22 and rental real estate losses from line 23. Enter total losses here. . . . Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 .
For Paperwork Reduction Act Notice, see instructions.

19 20

7,500 18,205

24 25 (

2,895 0)

26
KIA

2,895

Schedule E (Form 1040) 2008

SCHEDULE SE (Form 1040)

Department of the Treasury Internal Revenue Service (99)

OMB No. 1545-0074

Self-Employment Tax
Attach to Form 1040. See Instructions for Schedule SE (Form 1040). Social security number of person with self-employment income

Attachment Sequence No.

2008
17

Name of person with self-employment income (as shown on Form 1040)

David

R Lee

111-11-1111

Who Must File Schedule SE

You must file Schedule SE if: You had net earnings from self-employment from other than church employee income (line 4 of Short Schedule SE or line 4c of Long Schedule SE) of $400 or more, or You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a religious order is not church employee income (see instructions). Note. Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and use either "optional method" in Part II of Long Schedule SE (see instructions). Exception. If your only self-employment income was from earnings as a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361 and received IRS approval not to be taxed on those earnings, do not file Schedule SE. Instead, write "Exempt-Form 4361" on Form 1040, line 57.

May I Use Short Schedule SE or Must I Use Long Schedule SE?

Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE, above.
Did you receive wages or tips in 2008? No
Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other earnings?

Yes
Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $102,000?

Yes

Yes

No
Are you using one of the optional methods to figure your net earnings (see instructions)?

No Yes
Did you receive tips subject to social security or Medicare tax that you did not report to your employer?

Yes

No
Did you receive church employee income reported on Form W-2 of $108.28 or more?

No Yes No
Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages?

Yes

No You may use Short Schedule SE below You must use Long Schedule SE on page 2

Section AShort Schedule SE. Caution. Read above to see if you can use Short Schedule SE.
1a Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve
Program payments included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code X . .

1a 1b (

0 0)

Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; and Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 4 5

2 3

62,870 62,870 58,060

6
KIA

Net earnings from self-employment. Multiply line 3 by 92.35% (.9235). If less than $400, 4 do not file this schedule; you do not owe self-employment tax . . . . . . . . . . . . . . . . . Self-employment tax. If the amount on line 4 is: $102,000 or less, multiply line 4 by 15.3% (.153). Enter the result here and on Form 1040, line 57. More than $102,000, multiply line 4 by 2.9% (.029). Then, add $12,648 to the result. 5 Enter the total here and on Form 1040, line 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . Deduction for one-half of self-employment tax. Multiply line 5 by 4,442 50% (.5). Enter the result here and on Form 1040, line 27 . . . . . . . 6
For Paperwork Reduction Act Notice, see Form 1040 instructions.

8,883

Schedule SE (Form 1040) 2008

Form

8829

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. See separate instructions.

OMB No. 1545-0074

Department of the Treasury (99) Internal Revenue Service

Name(s) of proprietor(s)

Attachment Sequence No. 66 Your social security number

2008

David R Lee Part I Part of Your Home Used for Business

1 2 3 4 5 6 7 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. hr. 4 Multiply days used for daycare during year by hours used per day . . . . . 8,784 hr. 5 Total hours available for use during the year (366 days X 24 hrs) (see instructions) . 6 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

111-11-1111 600 3,000 20.00

1 2 3

20.00

Part II
8

Figure Your Allowable Deduction

8

Enter the amount from Schedule C, line 29, plus any net gain or (loss) derived from the business use of your home and shown on Schedule D or Form 4797. If more than one place of business, see instructions . . . . . . . See instructions for columns (a) and (b) before (a) Direct expenses (b) Indirect expenses completing lines 9-21.

71,623

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

9 Casualty losses (see instructions) . . . . . . . . . . 0 Deductible mortgage interest (see instructions) . . . 10 3,100 Real estate taxes (see instructions) . . . . . . . . . 11 3,100 0 Add lines 9, 10, and 11 . . . . . . . . . . . . . . . 12 620 13 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 -0Excess mortgage interest (see instructions) . . . . . 16 2,300 Insurance . . . . . . . . . . . . . . . . . . . . . . 17 Rent . . . . . . . . . . . . . . . . . . . . . . . . . 18 2,900 Repairs and maintenance . . . . . . . . . . . . . . 19 4,800 Utilities . . . . . . . . . . . . . . . . . . . . . . . . 20 6,000 0 Other expenses (see instructions) . . . . . . . . . . 21 6,000 10,000 Add lines 16 through 21 . . . . . . . . . . . . . . . 22 2,000 Multiply line 22, column (b) by line 7 . . . . . . . . . . . . . . . . . . . . 23 Carryover of operating expenses from 2007 Form 8829, line 42 . . . . . . 24 Add line 22 in 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 . . . . . . . . . . . . 0 Excess casualty losses (see instructions) . . . . . . . . . . . . . . . . . . 28 133 Depreciation of your home from line 41 below . . . . . . . . . . . . . . . 29 30 Carryover of excess casualty losses and depreciation from 2007 Form 8829, line 43 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, Section B . . . . . Allowable expenses for business use of your home. Subtract line 34 from line 33. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions . . .

14 15

620 71,003

25 26 27

8,000 8,000 63,003

31 32 33 34 35 36 37 38 39 40 41 42 43
Form

133 133 8,753 0 8,753 66,000 40,000 26,000 5,200 2.5640 133 0 0 8829 (2008)

Part III
36 37 38 39 40 41 42 43
KIA

Depreciation of Your Home

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the smaller of your home's adjusted basis or its fair market value (see instr.) 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 . .

. . . . . . . . . . . . .

Part IV

Carryover of Unallowed Expenses to 2009

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- . .
For Paperwork Reduction Act Notice, see instructions.

Form

4562

Depreciation and Amortization

(Including Information on Listed Property)
See separate instructions. Attach to your tax return.
Business or activity to which this form relates

OMB No. 1545-0172

Department of the Treasury (99) Internal Revenue Service Name(s) shown on return

Attachment Sequence No. 67 Identifying number

2008
250,000 $800,000 0 250,000

David Part I
1 2 3 4 5

R Lee SCH C 1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.
. . . . . . . . . . . . 1 2 3 4 5

111-11-1111

Maximum amount. See the instructions for a higher limit for certain businesses . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) Description of property (b) Cost (business use only)

. . .

(c) Elected cost

6 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2007 Form 4562 . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . 13 13 Carryover of disallowed deduction to 2009. Add lines 9 and 10, less line 12 . . Note: Do not use Part II or Part III below for listed property. Instead, use Part V.

0
8 9 10 11 12

0 0 250,000 0

Part II
14 15 16

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 15 16

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III
17 18

MACRS Depreciation (Do not include listed property.) (See instructions.)

Section A

MACRS deductions for assets placed in service in tax years beginning before 2008 . . . . . . . . . 17 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section BAssets Placed in Service During 2008 Tax Year Using the General Depreciation System
(a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) (d) Recovery period (e) Convention (f) Method

10,909

(g) Depreciation deduction

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property Nonresidential real property

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM MM

S/L S/L S/L S/L S/L

Section CAssets Placed in Service During 2008 Tax Year Using the Alternative Depreciation System S/L 20a Class life 12 yrs. S/L b 12-year c 40-year 40 yrs. MM S/L

Part IV
21 22 23
KIA

Summary (See instructions.)

21 22

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, line 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instr. . For assets shown above and placed in service during the current year, 23 enter the portion of the basis attributable to section 263A costs . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

4,410 15,319

Form

4562 (2008)

Form 4562 (2008)

Part V

David R Lee 111-11-1111 Page 2 Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and property used for entertainment, recreation, or amusement.)

Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section ADepreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use claimed?
(a) Type of property (list vehicles first) (b) Date placed in service (c) Business/ investment use percentage (d) Cost or other basis Yes

No

24b If "Yes," is the evidence written?

(f) Recovery period (g) Method/ Convention (h) Depreciation deduction

Yes

No

(e) Basis for depreciation (business/investment use only)

(i) Elected section 179 cost

25 26

Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) . . . . . . . . . . Property used more than 50% in a qualified business use:

25

0 4,410

Infiniti

02/04/07

90

% % %

41,000

36,900

5.00 200DB HY

27

Property used 50% or less in a qualified business use:

% % % S/L S/L S/L

28 29

4,410 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . . . . . . . Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . . . . . . . . . . . . . 29
Section BInformation on Use of Vehicles

Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.

30

Total business/investment miles driven during the year (do not include commuting miles) . . . . . . . . . . . . . . . . . . . . Total commuting miles driven during the year

(a) Vehicle 1

(b) Vehicle 2

(c) Vehicle 3

(d) Vehicle 4

(e) Vehicle 5

(f) Vehicle 6

31 32

13,050 1,450

Total other personal (noncommuting) 0 miles driven . . . . . . . . . . . . . . 33 Total miles driven during the year. Add 14,500 0 0 0 0 0 lines 30 through 32 . . . . . . . . . . Yes No Yes No Yes No Yes No Yes No Yes No 34 Was the vehicle available for personal X use during off-duty hours? . . . . . . . 35 Was the vehicle used primarily by a X more than 5% owner or related person? 36 Is another vehicle available for personal X use? . . . . . . . . . . . . . . . . . . Section CQuestions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . . . . . . . . . . . . . . . . . . Yes No

38 39 40 41

Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . . . . . . . . Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . . . . . . . . . Do you meet the requirements concerning qualified automobile demonstration use? (See instructions) . . . . . Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles.

Part VI

Amortization
(a) Description of costs (b) Date amortization begins (c) Amortizable amount (d) Code section (e) Amortization period or percentage (f) Amortization for this year

42

Amortization of costs that begins during your 2008 tax year (see instructions):

43 44
KIA

Amortization of costs that began before your 2008 tax year

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43 44
Form

Total. Add amounts in column (f). See the instructions for where to report

0 4562 (2008)

Form

4562

Depreciation and Amortization

(Including Information on Listed Property)
See separate instructions. Attach to your tax return.
Business or activity to which this form relates

OMB No. 1545-0172

Department of the Treasury (99) Internal Revenue Service Name(s) shown on return

Attachment Sequence No. 67 Identifying number

2008
250,000 $800,000 0 250,000

David Part I
1 2 3 4 5

R Lee Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.
. . . . . . . . . . . . 1 2 3 4 5

111-11-1111

Maximum amount. See the instructions for a higher limit for certain businesses . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) Description of property (b) Cost (business use only)

. . .

(c) Elected cost

6 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2007 Form 4562 . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . 13 13 Carryover of disallowed deduction to 2009. Add lines 9 and 10, less line 12 . . Note: Do not use Part II or Part III below for listed property. Instead, use Part V.

0
8 9 10 11 12

0 0 250,000 0

Part II
14 15 16

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 15 16

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III
17 18

MACRS Depreciation (Do not include listed property.) (See instructions.)

Section A

MACRS deductions for assets placed in service in tax years beginning before 2008 . . . . . . . . . 17 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section BAssets Placed in Service During 2008 Tax Year Using the General Depreciation System
(a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) (d) Recovery period (e) Convention (f) Method (g) Depreciation deduction

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property Nonresidential real property

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM MM

S/L S/L S/L S/L S/L

Section CAssets Placed in Service During 2008 Tax Year Using the Alternative Depreciation System S/L 20a Class life 12 yrs. S/L b 12-year c 40-year 40 yrs. MM S/L

Part IV
21 22 23
KIA

Summary (See instructions.)

21 22

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, line 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instr. . For assets shown above and placed in service during the current year, 23 enter the portion of the basis attributable to section 263A costs . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

0 0

Form

4562 (2008)

Form

4562

Depreciation and Amortization

(Including Information on Listed Property)
See separate instructions. Attach to your tax return.
Business or activity to which this form relates

OMB No. 1545-0172

Department of the Treasury (99) Internal Revenue Service Name(s) shown on return

Attachment Sequence No. 67 Identifying number

2008
250,000 $800,000 0 250,000

David Part I
1 2 3 4 5

R Lee Rental Royalty 1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.
. . . . . . . . . . . . 1 2 3 4 5

111-11-1111

Maximum amount. See the instructions for a higher limit for certain businesses . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) Description of property (b) Cost (business use only)

. . .

(c) Elected cost

6 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2007 Form 4562 . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . 13 13 Carryover of disallowed deduction to 2009. Add lines 9 and 10, less line 12 . . Note: Do not use Part II or Part III below for listed property. Instead, use Part V.

0
8 9 10 11 12

0 0 250,000 0

Part II
14 15 16

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 15 16

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III
17 18

MACRS Depreciation (Do not include listed property.) (See instructions.)

Section A

MACRS deductions for assets placed in service in tax years beginning before 2008 . . . . . . . . . 17 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section BAssets Placed in Service During 2008 Tax Year Using the General Depreciation System
(a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) (d) Recovery period (e) Convention (f) Method

18,205

(g) Depreciation deduction

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property Nonresidential real property

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM MM

S/L S/L S/L S/L S/L

Section CAssets Placed in Service During 2008 Tax Year Using the Alternative Depreciation System S/L 20a Class life 12 yrs. S/L b 12-year c 40-year 40 yrs. MM S/L

Part IV
21 22 23
KIA

Summary (See instructions.)

21 22

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, line 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instr. . For assets shown above and placed in service during the current year, 23 enter the portion of the basis attributable to section 263A costs . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

0 18,205

Form

4562 (2008)

Form

4562

Depreciation and Amortization

(Including Information on Listed Property)
See separate instructions. Attach to your tax return.
Business or activity to which this form relates

OMB No. 1545-0172

Department of the Treasury (99) Internal Revenue Service Name(s) shown on return

Attachment Sequence No. 67 Identifying number

2008
250,000 $800,000 0 250,000

David Part I
1 2 3 4 5

R Lee Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.
. . . . . . . . . . . . 1 2 3 4 5

111-11-1111

Maximum amount. See the instructions for a higher limit for certain businesses . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) Description of property (b) Cost (business use only)

. . .

(c) Elected cost

6 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2007 Form 4562 . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . 13 13 Carryover of disallowed deduction to 2009. Add lines 9 and 10, less line 12 . . Note: Do not use Part II or Part III below for listed property. Instead, use Part V.

0
8 9 10 11 12

0 0 250,000 0

Part II
14 15 16

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 15 16

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III
17 18

MACRS Depreciation (Do not include listed property.) (See instructions.)

Section A

MACRS deductions for assets placed in service in tax years beginning before 2008 . . . . . . . . . 17 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section BAssets Placed in Service During 2008 Tax Year Using the General Depreciation System
(a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) (d) Recovery period (e) Convention (f) Method (g) Depreciation deduction

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property Nonresidential real property

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM MM

S/L S/L S/L S/L S/L

Section CAssets Placed in Service During 2008 Tax Year Using the Alternative Depreciation System S/L 20a Class life 12 yrs. S/L b 12-year c 40-year 40 yrs. MM S/L

Part IV
21 22 23
KIA

Summary (See instructions.)

21 22

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, line 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instr. . For assets shown above and placed in service during the current year, 23 enter the portion of the basis attributable to section 263A costs . . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

0 0

Form

4562 (2008)