Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311.
Question:
Noah and Joan Arc live with their family in Dayton, OH. Noah’s Social Security number is 434-11-3311. Noah was born on February 22, 1982, and Joan was born on July 1, 1983. Both enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton.
1) The Arcs have two children, a son named Billie Bob (Social Security number 598-01-2345) born on March 21, 2010, and a daughter named Mary Sue (Social Security number 554-33-2411) born on December 3, 2013.
2) Joan and Noah brought a folder of tax documents
3) Noah's pet store is located at 1415 S. Patterson Blvd., Dayton, OH 45409. The name of the store is "The Arc" and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you printed the income statement from your Quickbooks software, shown below.
4) Noah and Joan paid the following amounts during the year (all by check)
Political Contributions | $250 |
Church donations (for which a written acknowledgment was received) | $2,625 |
Real estate taxes on their home | $1,375 |
Medical co-pay for doctor visits | $700 |
Mortgage interest for purchase of the home | $11,130 |
Tax return preparation fees | $350 |
Credit card interest | $220 |
Automobile insurance premiums | $600 |
Uniforms for Joan | $125 |
5) Noah has a long-term capital loss carryover from last year of $2,375
6) Noah and Joan own a rental property located at 16 Oakwood Ave, Unit A, Dayton, OH 45409. The revenue and expenses for the year are as follows:
Rental Income | $13,800 |
Insurance | $575 |
Interest expense | $6,870 |
Property taxes | $1,000 |
Miscellaneous expenses | $700 |
Depreciation (the house was acquired in 1992) | $3,000 |
7) All members of the Arc household were covered for the entire year under health care insurance through Joan's employer.
8) The Arcs paid Ohio general sales tax of $976 during the year.
Required:
You are to prepare their federal income tax return in good form, signing the returns as the preparer. Do not complete an Ohio state income tax return. Make realistic assumptions about any missing data (addresses, etc.) that you may need. The following forms and schedules are required.
Form 1040 | Schedule E |
Schedule A | Schedule SE |
Schedule B | Form 2441 |
Schedule C | Form 8949 |
Schedule D | Qualified Dividends and Capital Gains Tax Worksheet |
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th edition
Authors: Gerald E. Whittenburg, Steven Gill