Bob King (age 64) & Ruth King (age 58) are married and will file a joint tax return for 2019. They have provided the following information and have asked for your help with their 2019 individual income tax return:

Bob's Salary	$60,000
Ruth's Salary	92,500
Ruth received Interest from US Treasury bond	800
Ruth received Interest from City of West Palm Beach bond	2,000
Ruth Received Qualified Dividend received from DERP Corp	5,000
Bob was a general partner in Partnership XYZ (actively participates). Bob has plenty of basis and at-risk basis in the partnership ($500,000 for each). Helpful Tip: Bob will not have self-employment tax as his net self-employment income from Partnership XYZ is negative.
Bob's share of XYZ's Ordinary Business Loss	<25,000>
Bob's share of XYZ's LTCG	2,500
Bob's share of XYZ's Interest Income	700
Ruth sold stock and had a LTCL	<20,000>
Ruth’s birthday gift of cash from sister Dana, a successful executive	1,000
Edna Smith, Bob’s aunt, died Jan 1, 2019. Bob inherited ABC stock.
Value of ABC stock Bob inherited	15,000
2019 Qualified dividend Bob received from the ABC stock	300
Bob won cash competing on a new gameshow, The Wheel of Jeopardy!	18,000
Additional information:
Qualified mortgage interest	14,000
Medical expenses	18,500
Property tax on personal residence	4,500
Sales tax paid	1,400
State income taxes paid	5,000
Unreimbursed employee business expenses	2,000
Child support paid to ex-wife	6,000
Qualifying charitable contributions (cash)	10,000

 

 

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After considering ALL of the income and deductions from all sources, as provided above, Bob and Ruth should... 1.... [Select] 2.... [Select] 3.... [Select] 4. ... 5. ... 6. ... [Select] [Select] [Select] 7.... [Select] 8. ... [Select] the salary for their tax return. the treasury bond interest for their tax return. ✓ the interest from of City of West Palm Beach bond. ✓the qualified dividend income from DERP. ✓the pship ordinary loss. the interest from XYZ pship. the qualified dividend income from XYZ pship. ✓ Wheel of Jepardy! cash prize. 9. ...net their capital gains/losses and will have [Select] In calculating Bob and Ruth's allowable itemized deductions... 1. ...mortgage interest is limited to [Select] 2. ...medical expenses are limited to [Select] 3. ...the aggregate allowed itemized deduction for total taxes is 4. ...unreimbursed employee business expenses [Select] 5. ...child support paid to ex-wife [Select] 6. ...contributions [Select] ✓of AGI. ✓of AGI. [Select] ✓an allowable itemized deduction. ✓an allowable itemized deduction. ✓an allowable itemized deduction. After considering ALL of the income and deductions from all sources, as provided above, Bob and Ruth should... 1.... [Select] 2.... [Select] 3.... [Select] 4. ... 5. ... 6. ... [Select] [Select] [Select] 7.... [Select] 8. ... [Select] the salary for their tax return. the treasury bond interest for their tax return. ✓ the interest from of City of West Palm Beach bond. ✓the qualified dividend income from DERP. ✓the pship ordinary loss. the interest from XYZ pship. the qualified dividend income from XYZ pship. ✓ Wheel of Jepardy! cash prize. 9. ...net their capital gains/losses and will have [Select] In calculating Bob and Ruth's allowable itemized deductions... 1. ...mortgage interest is limited to [Select] 2. ...medical expenses are limited to [Select] 3. ...the aggregate allowed itemized deduction for total taxes is 4. ...unreimbursed employee business expenses [Select] 5. ...child support paid to ex-wife [Select] 6. ...contributions [Select] ✓of AGI. ✓of AGI. [Select] ✓an allowable itemized deduction. ✓an allowable itemized deduction. ✓an allowable itemized deduction.

Answer rating: 100% (QA)

1Bob and Ruth should report all of the income items listed on their tax return including Bobs salary Ruths salary interest from the US Treasury bond interest from the City of West Palm Beach bond qual... View the full answer