BM151: Financial Services – Portfolio Project 1

Portfolio Project Overview

For most of the courses in the Business Fundamentals (BFN) Program, you will complete two tasks related to creating an online vegetarian catering business, which will constitute as part of your business plan. The purpose of the portfolio projects is to consider various aspects of small business activities, thereby demonstrating the application of knowledge, skills, and abilities acquired in each of your courses throughout the program.

Your Portfolio Project will consist of 2 parts and will culminate in a presentation to the class showing the progress made during your business development and planning. Remember – both parts of the Portfolio Project are related, with each part building on the next part.

Below is a list of chapter topics that will be included in your portfolio from this course:

BM151 Financial Services

Taxes in Your Financial Plan

Selecting and Financing Property

Portfolio Project 1 Description:

Financial literacy is one of the most important factors determining success in both personal development and business. Ensuring financial stability for yourself and your family depends on whether you manage your financial resources correctly, plan income and expenses, calculate taxes, distribute your own financial resources, or make investments. It is important to start setting financial goals now because everything you do today will affect your financial means in the future. So, the first step to success has already been taken, and you are opening your own business. Do you understand how money works, how much investment needs to be made, what the cash flow will be, when you will get the first profit, and how to pay taxes? In this part of the Portfolio Project, find answers to these questions in order to ensure your financial well-being.

Taxes in Your Financial Plan

For this portfolio project, you will complete your Federal Income Tax Return for a fiscal year, 2022 (12-months period). In this scenario, you are not married and do not have kids. Being employed as a managing director of your limited liability company, you provided 100% on your own and earned $48,000 last year. You have decided not to distribute profits of your company. You sold a car that you had bought 3 years ago and got $500 as a long-term capital loss (Schedule D is not required). Additionally, you received $300 in interest on state bonds and $200 in interest on money market accounts. During the year, you had the following expenses:

Medical and dental expenses – $4,200;

State and local income taxes – $2,300;

State and local real estate taxes – $2,000;

Home mortgage interest – $3,800 (you have indicated this amount in Form 1098);

Mortgage insurance premiums – $400;

Charitable contribution to United Way of America made by check – $200;

Federal income tax withheld from Form(s) W-2 – $4,203.

Fill out your tax return for the 2022 tax year. You can access the template here. When completed, save the tax return as a PDF.

As part of your assignment, you will have to define the amount of your deductions. Note that you can only use the deduction (either standard deduction or itemized deductions) that has the highest value.

In order to find out how much the Standard Deduction that you are eligible for is, you can complete a short test “How Much Is My Standard Deduction?”

Fill out Schedule A (Form 1040) to calculate your Itemized Deductions. When the template is completed, save it as a PDF.

Write a brief note on what a person could do to reduce the amount of federal income tax liability (refer to the article here).

You can find information on applicable deductions and tax rates in the following articles:

Standard Deduction vs. Itemized Deductions: Which Is Better? https://www.forbes.com/advisor/taxes/standard-deduction-vs-itemized-deductions/

15 Legal Secrets to Reducing Your Taxes https://www.forbes.com/advisor/taxes/taxes-federal-income-tax-bracket/

Your work must be posted to your Mahara portfolio webpage in Portfolio Part 1 in Moodle. Make sure to check your writing for spelling, grammar, and punctuation before posting.

FOR INSTRUCTOR USE ONLY

Grading Rubric

Grading accepts a start value of 100. Points will be deducted for failure to fully complete or meet the stated requirements. Grading: 90-100 = Represents work of superior quality (A); 80-89 = Represents work of good to very good quality (B); 70-79 = Represents adequate command of class content (C); 69 and below = Represents work that shows a need for development or improvement (F); 0 = Represents plagiarized work (F).

BM151: Financial Services (BCP-BFN)

Student:

Instructor:

Date:

STUDENT LEARNING OUTCOMES

SLO-1. Identify the factors that influence personal financial decisions.

SLO-2. Know what money management strategy is and how to develop it.

SLO-3. Identify strategies to improve money management in order to achieve personal and business financial goals.

SLO-9. Learn how to calculate taxable income and the amount owed for federal income tax, and how to prepare a federal income tax return.

SLO-10. Select appropriate tax strategies for various life situations.

Portfolio Project 1

YOUR SCORE: ________

Instructor Comments: