1 . Charles & Stacy Brown have been married for 2 0 years and have always filed...
Question:
Charles & Stacy Brown have been married for years and have always filed joint tax returns; however, this year they separated for the last months of the year in anticipation of a probable divorce. They live at Primrose Court, Seminole, Florida.
Charles inherited $ from his brothers death.
They have two teenagers, Jerry, working as a car mechanic and earned $ and still lives with his parents. Julie, started Seminole College on a fulltime basis in the fall. She earned $ as a parttime waitress and lives at home except when she dorms at the college.
Charles is a musician and music composer. He earned $ as a musician and $ in royalties from music that he composed. One room in his home sq ft out of sq ft home, is his studio and office. He paid quarterly estimates of $ in total. His mileage was gas cost $ tolls $ parking $ car washes $ AAA membership $ business car insurance $ and depreciation this year on the car $ His music supplies are $ legal and accounting of $ He hired an occasional music student for $ this year.
Stacy is a rd grade teacher in the local school and earns a salary of $ Her Federal withholding for the year was $ $ and Medicare $ She had a retirement account contribution of $ Stacy spent $ for a special school project for her students that were not reimbursed by the school.
They own a vacation home that they used for week in April and weeks in midJune. The vacation home was rented out during the summer months from June through September for $ each month. The real estate taxes are $ for the year, mortgage interest of $ utilities are $ a month and maintenance is $ a month. The original cost of the home was $ and was depreciated for years already.
They had interest income of $ from their municipal bonds and $ from their savings account, ordinary dividends of $ qualified dividends are $ and foreign tax credit of $
They sold stock for $ that cost them $ years ago.
Charles invested $ for shares in a local startup corporation selling and renting out music equipment. He sold shares a couple of years ago for $ and this year he sold the remaining shares for $
Their home mortgage interest is $ real estate taxes $ utilities $ phone and internet $ Charitable contributions were $ Since Florida has no income taxes, they had sales tax expense of $
Jerry was injured playing football and his parents paid for the physical therapy that cost them $ above what the health insurance paid, braces for Julie for the final year cost $ The parents have health insurance plans, Stacy from her employer paid plan that covers her and the children. Charles has a selfemployed insurance plan that he pays $ a year through his business.
Stacy has a parttime ceramic business with seasonal sales of $ this year. Her costs are $ for plaster and glue. Paint cost $ and packaging material of $ plus a dedicated cell phone of $ this year. The last couple of years her profit was $ years ago and $ loss last year. Stacy uses Quickbooks to keep track of the income and expenses, a record book of sales to customers and a separate checking account.
Stacy lent $ to a friend that didnt repay the loan. Although there was a signed note with interest, nothing was repaid. Stacy wants to forget about but Charles is adamant that she collect on it and that disagreement triggered the separation.
Be sure to delineate, what is includible, whats excludible, to arrive at AGI and from AGI, itemized vs standard deduction.
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver