Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2013, Kent's W-2 as the controller of a local corporation showed the following:
Earnings from the Gentry Corporation...............................................$150,000
Federal income tax withheld.............................................................25,000
State income tax withheld................................................................14,000
During the year, Kent paid the following amounts (all of which can be Kent's other income includes interest from GMAC bonds of $3,250 and interest on CDs at The Cove Bank of $4,145. Also, Kent received tax-exempt interest of $37,960 on private activity bonds that is subject to alternative minimum tax.
substantiated):
Home mortgage interest..................................................................$42,210
Home equity debt interest on loan used to purchase a Lexus..........................6,800
Credit card interest...........................................................................2,280
California annual auto registration tax (deductible portion) ..............................770
Auto insurance...............................................................................1,170
State income taxes paid in 2013 (for 2012) ............................................16,302
Property taxes on personal residence......................................................8,060
Blue Cross premiums........................................................................2,340
Other medical expenses.....................................................................1,025
CPA fees paid to handle 2009 IRS audit................................................9,100
Charitable contributions:
Tree-huggers Historical Society (a qualified charity)...................................1,040
Campanile Educational (a qualified charity)............................................12,000
Tecaté Orphanage (a Mexican organization)................................................500
Required:
Complete Kent's federal tax return for 2013. Use Form 1040, Schedule A, Schedule B, and Form 6251, on Pages 6-53 through 6-58. Make realistic assumptions about any missing data.