Individual Tax Returns

Anonymous
timer Asked: Oct 3rd, 2018
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Question description

Using the case data from the attached Case 1, complete Form 1040. Complete the attached template that has the respective tax forms and schedules required to complete the return. Complete all of the remaining parts of your respective business tax return for which there is information. Also, address any instructor feedback provided in the milestone submissions.

Some of the forms in the template for the Portfolio Project have only the front page (i.e. Form 1040 and Schedule D). You do not have to complete the second page for those forms, only the front page provided in the template. Schedule C is also not included in the template so if you are doing the option with that item, please just calculate the net income or loss and enter the amount on the appropriate line of Form 1040.

ACT405 – Portfolio Project Case 1 Comprehensive Tax Problem – Option 1 Taxpayer Information Name: John Washington Address: 3450 Green St. Miami, FL 54321 DOB: 5/5/1960 Filing Status: Married SSN: 434-20-2020 Occupation: Engineer Name: Debra Washington Address: 3450 Green St. Miami, FL 54321 DOB: 7/7/1962 Filing Status: Married SSN: 411-21-4568 Occupation: Teacher INCOME INFORMATION: Wages and Compensation The following information is taken from John Washington’s 2017 Form W-2 Wage and Tax Statement: Box 1 – Wages, tips, and other compensation Box 2 – Federal Withholding Box 17 – State Income Tax Withholding 80,000 12,500 2,000 The following information is taken from Debra Washington’s 2017 Form W-2 Wage and Tax Statement: Box 1 – Wages, tips, and other compensation Box 2 – Federal Withholding Box 17 – State Income Tax Withholding 42,000 3,500 750 Interest and Dividends John had interest income from a savings account from Everest Bank of $500.00 Debra had dividend income of $550 from Blue Co. stock. Capital Gains John had the following stock transactions in 2017: He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000 Rental Real Estate The couple owns a rent house which he purchased on July 1, 2014. The income and expenses of the rental real estate unit are as follows: Rental income Property taxes Depreciation Repairs and Maintenance Insurance $12,000 $1,500 $1,000 $750 $2,000 Other Transactions in 2017 1. Debra had educator expenses in 2017 of $450.00 2. John had gambling winnings of $1,000. 3. John was the beneficiary of his mother’s life insurance policy. His mother died in 2017 and he received $50,000 under this policy. 4. Debra paid $700 in student loan interest.
2016 Form 1040 Department of the Internal Treasury Revenue Service U.S. Individual Tax Form OMB No.1545-0074 For the year Jan.1--Dec. 31,2016, or any other tax year beginning Your first name and initial ,2016, IRS Use Only--Do not write or staple in this sp ,20 See Separate Instructions Last name Social Security Number If a joint return, spouses first name Last and initial name Spouse Social Security Numb Home address( number and street). If you have a P.O. Box, see instructions Make Sure that the SSN(s) abo and on line 6c are correct City, town, or post office, state, and zip code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campai Check here if you, or your spou Foreign country name Foreign province/state/country Foreign postal code checking this box below will not refund. Filing Status 1. Single 4.Head of Household (with qualifying person.) (See instructi Check only one box 2.. married filing jointly the qualifying person is a child but not your dependent, ente 3. Married filing separately. Enter spouse's SSN above child's name here Exemptions If more than four dependents, see instructions and check here 5. Qualifying Window(er) with dependent child and full name here. 6a Yourself. If someone can claim you as a dependent, do not check box 6a ] b spouse c. Dependents (1) First name ] Last name (2) dependents social security number (3) dependents relationship to you (4) check if child under age 17 qualifying for tax credit see instructions. d. Total number of Exemptions Claimed Income 7 8a Wages, salaries, tips, etc. Attach Forms (W-2) Attach Form(s) b Tax-exempt interest. Do not include on line 8a W-2 here. Also 9a Ordinary dividends. Attach Schedule B if required attach Forms(s) b Qualified dividends W-2 and 1099-R 10 Taxable refunds, credits, or offsets state or local income taxes if tax was withheld. 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ If you did not 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here get a W-2, 14 other gains or (losses). Attach Form 4797 see instructions 15a IRA distributions 15a b Taxable amount 16a Pensions and annuities 16a b Taxable amount 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F 19 Unemployment compensation 20a Social security benefits Taxable interest. Attach Schedule B if required 8b 9b 20a b Taxable amount Adjusted 21 other income. List type and amount 22 This is your total income. combine the amounts in the far right column for lines 7 through 21. This is your total income 23 Gross Income Educator expenses Certain business expenses of reservists, performing artists, and feebasis government. Attach Form 2106 or 2106-EZ 24 23 24 25 Health-savings account deduction. Attach Form 8889 25 26 Moving Expenses. Attach Form 3903 26 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans 28 29 Self-employed health insurance deduction 29 30 Penalty on early withdrawal of savings 30 31a Alimony paid b. Recipient's SSN 31a 32 IRA deduction 32 33 Student loan interest deduction 33 34 Tuition and fees. Attach Form 8917 34 35 Domestic production activities deduction. Attach Form 8903 35 36 Add lines 23 through 35 37 Subtract line 36 from line 22. This is your adjusted gross income. y--Do not write or staple in this space See Separate Instructions Social Security Number Spouse Social Security Number Make Sure that the SSN(s) above and on line 6c are correct . Presidential Election Campaign Check here if you, or your spouse if filing jointly, checking this box below will not change your tax you spouse qualifying person.) (See instructions.) If hild but not your dependent, enter this ith dependent child Boxes checked on 6a and 6b (4) check if child under age 17 qualifying for tax credit see instructions. No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines above 7 8a 9a 10 11 12 13 14 15b 16b 17 18 19 b Taxable amount 20b 21 22 36 37 SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Itemized Deductions ▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea ▶ Attach to Form 1040. Name(s) shown on Form1040 Caution. Do not include expenses reimbursed or paid by others. Medical and Dental Expenses Taxes You Paid Interest You Paid Note. Your mortgage interest deduction may be limited (see instructions). Gifts to Charity if you made a 1 Medical and dental expenses (see instructions)..... 2 2 Enter amount from Form 1040, line 38 3 Multiply line 2 by 10% (.10). But if either you or your spouse was born before January 2, 1949, multiply line 2 by 7.5% (.075) instead Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. . 4 5 State and local (check only one box): a b see instructions Casualty Job Expenses and Certain Miscellaneous Deductions Income tax or General sales tax 6 Real estate taxes (see instructions) . 7 Personal Property taxes. . . . 8 Other taxes. List type and amount > . . . . .. . } . . . . . . . . . . . . . . . . . to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address ▶ 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . . . . 13 14 15 16 Mortgage insurance premiums (see instructions) . . . . . Investment interest. Attach Form 4952 if required. (See instructions.) Add lines 10 through 14. . . . . . . . . . . . . . . . . . . . . . . . . . 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. . . . . . . . . . . . . . . . . . . . . . . 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . 21 Unreimbursed employee expenses—job travel, union dues, ob education, etc. Attach Form 2106 or 2106-EZ if required. (see instructions) ▶ 22 Tax preparation fees . . . . . . . . . . . . . 23 Other expenses—investment, safe deposit box, etc. List type and amount Other Miscellaneo us Deductions . . 9 Add lines 5 through 8 10 Home mortgage interest and points reported to you on Form 1098 11 Home mortgage interest not reported to you on Form 1098. If paid gift and got a benefits for it ., □ □ . . . . 24 25 26 27 28 ▶ Add lines 21 through 23 . . . . . . . . . . . . Enter amount from Form 1040, line 38 25 Multiply line 25 by 2% (.02). . . . . . . . . . . . . . . . Subtract line 26 from line 24. If line 26 is more than line 24, enter -0-. . . . . . Other—from list in instructions. List type and amount ▶ Total Itemized Deductions 29 Is Form 1040, line 38, over $150,000? □ 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. Yes. Your deduction may be limited. See the Itemized Deductions □ Worksheet in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C OMB No. 1545-0074 2016 ductions www.irs.gov/schedulea Attachment Sequence No. 07 Your social security number 1 . . . . 3 . . 4 5 6 7 8 9 10 11 12 13 14 15 . . . . . . . . 16 17 18 . . . . . . . 19 20 21 22 23 24 26 27 28 } ▶ . . 29 □ Schedule A (Form 1040) 2016 SCHEDULE B Interest and Ordinary Dividends (Form 1040A or 1040) Department of the Treasury Internal Revenue Service (99) ▶ Information ▶ Attach to Form 1040A or 1040. about Schedule B (Form 1040A or 1040) and its instructions is at www.irs.gov/scheduleb . Name(s) shown on return Part I Interest (See instructions on back and the instructions for Form 1040A, or Form 1040, line 8a.) 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. Your social security nu 1 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 on back and list this interest first. Also, show that buyer’s social security number and address ▶ 2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a . . . . . . . . . . . . . . . . . . . . . . ▶ 1 2 3 4 Note. If line 4 is over $1,500, you must complete Part III. 5 List name of payer ▶ 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . ▶ 5 6 Part II Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a.) 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. Note. If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Part III 7a At any time during 2016, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign Foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . Accounts If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial and Trusts Accounts (FBAR), formerly TD F 90-22.1, to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those (See requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . instructions If Notice, you are required to fileinstructions. FinCEN Form 114, enter name of the foreign where the2016 For Paperworkon ReductionbAct see your tax return Cat.the No. 17146N Schedule country B (Form 1040A or 1040) OMB No. 1545-0074 2016 Attachment Sequence No. 08 Your social security number Amount Amount ad a foreign account; er a financial account al uthority? untry where the2016 orm 1040A or 1040) Yes No SCHEDULE D (Form 1040) Capital Gains and Losses ▶ Attach Department of the Treasury Internal Revenue Service (99) ▶ Information to Form 1040 or Form 1040NR. about Schedule D and its separate instructions is at www.irs.gov/scheduled . Name(s) shown on return Part I Your social security number Short-Term Capital Gains and Losses—Assets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole 1a Totals for alldollars. short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, you to report all these 1b Totalsiffor allchoose transactions reported on Form(s) 8949 with Box A checked (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) . . . . . . . . . . . . . 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . 4 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . 5 6 7 Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g) 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . 10 Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . 11 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 . . . . . . . . . . . . . . . . . . . . . . 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . 14 Long-term capitalAct lossNotice, carryover. Enter amount, if any, from line 13 of your Capital For Paperwork Reduction see your taxthe return instructions. Cat. No.Loss 11338H 11 12 13 14 15 Schedule D (Form 1040) 2016 curity number OMB No. 1545-0074 2016 Attachment Sequence No. 12 g) tments 8949, Part I, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 4 5 6 ( ) 7 g) tments 8949, Part II, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 11 12 13 14 ( 15 Schedule D (Form 1040) 2016 ) SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99) Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) ▶ Attach to Form 1040, 1040NR, or Form 1041. ▶ Information about Schedule E and its separate instructions is at www.irs.gov/schedulee. Name(s) shown on return Part I Your social security number Income or Loss From Rental Real Estate and Royalties 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. Yes Yes A Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) B If “Yes,” did you or will you file required Forms 1099? Physical address of each property (street, city, state, ZIP code) 1a A B C Type of Property (from list below) 1b B 2 For each rental real estate property listed above, report the number of fair rental and only if you meet the requirements to file as a A qualified joint venture. See instructions. B C C A personal use days. Check the QJV box Type of Property: 1 Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 Commercial 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: Properties: A 3 Rents received . . . . . . . . . . . . . 3 4 Royalties received . . . . . . . . . . . . 4 Expenses: 5 Advertising . . . . . . . . . . . . . . 6 Auto and travel (see instructions) . . . . . . . 7 Cleaning and maintenance . . . . . . . . . 8 Commissions. . . . . . . . . . . . . . 9 Insurance . . . . . . . . . . . . . . . 10 Legal and other professional fees . . . . . . . 11 Management fees . . . . . . . . . . . . 12 Mortgage interest paid to banks, etc. (see instructions) 13 Other interest. . . . . . . . . . . . . . 14 Repairs. . . . . . . . . . . . . . . . 15 Supplies . . . . . . . . . . . . . . . 16 Taxes . . . . . . . . . . . . . . . . 17 Utilities . . . . . . . . . . . . . . . . 18 Depreciation expense or depletion . . . . . . . 19 Other (list) ▶ 20 Total expenses. Add lines 5 through 19 . . . . . 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) . . . . . . . 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Fair Rental Days Personal Use Days B 18 Depreciation expense or depletion . . . . . . . 19 Other (list) ▶ 20 Total expenses. Add lines 5 through 19 . . . . . 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 22 Deductible rental real estate loss after limitation, if any, on Form 21 8582 (see instructions) . . . . . . . 22 ( ) ( 23a Total of all amounts reported on line 3 for all rental properties . . . . b Total of all amounts reported on line 4 for all royalty properties . . . . c Total of all amounts reported on line 12 for all properties . . . . . . d Total of all amounts reported on line 18 for all properties . . . . . . e Total of all amounts reported on line 20 for all properties . . . . . . ) 23a 23b 23c 23d 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 26 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 . . . . 24 25 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040) 2016 OMB No. 1545-0074 2016 Attachment Sequence No. 13 Your social security number nal property, use Yes Yes Personal Use Days No No QJV C ( ) ( ) hedule E (Form 1040) 2016

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