In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appropriate amo
Include in Gross
Item
Amount
Income
Interest from Savings Account
$60
Dividends from stock investment
$500
Bad Debt from an Unpaid Loan
$6,000
Donation of automobile to charity
$600
Cash donation to church
$500
Cash donation to charity
$3,000
Student loan interest
$1,200
Alimony
$12,000
Loss on the sale of stock purchased 5 years ago
$900
Gain of the sale of stock purchased 6 years ago
$1,200
Traditional IRA contributions
$4,500
Net loss on real estate rental properties
$6,000
Home business (sole proprietorship) profit
$12,000
Moving expenses
$2,500
ome. Show the appropriate amount that should appear under each heading. More than one option may be selected
Exclude form
Deduction for Deduction from
Appears on
Appears on
Appears on
Gross Income
AGI
AGI
Schedule A
Schedule B
Schedule D
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.
In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appro
Include in
Item
Amount
Gross
Income
Interest from Savings Account
$500,00
$500,00
Dividends from stock investment
$550,00
$550,00
Student loan interest
$700,00
$0,00
Loss on the sale of stock purchased 3 months ago
$13.000,00
$12.000,00
Net profit on real estate rental properties
$6.750,00
$12.000,00
Wages, tips, and other compensation
$122.000,00 $122.000,00
Federal Withholding
$16.000,00
$0,00
State Income Tax Withholding
$2.750,00
$0,00
Educator expense
$450,00
$0,00
gambling winning
$1.000,00
$1.000,00
insurance benefits
$50.000,00
$0,00
-2 income. Show the appropriate amount that should appear under each heading. More than one option may be selected
Exclude form Deduction for
Deduction
Appears on
Appears on
Appears on
Gross Income
AGI
from AGI
Schedule A
Schedule B
Schedule D
$0,00
$500,00
$0,00
$700,00
$700,00
$0,00
$13.000,00
$12.000,00
$0,00
$0,00
$16.000,00
$16.000,00
$16.000,00
$2.750,00
$2.750,00
$2.750,00
$450,00
$450,00
$450,00
$0,00
$50.000,00
e option may be selected
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