ACC$421($Submit soft pdf version to the ASSIGNMENT folder$)$ Received an inheritance of $$200,000$ from his uncle, Jerry. Joseph used $$110,000$ to

purchase Gabriel, Inc. stock on May $1,2022,$ and invested $$90,000$ in Gold, Inc. stock on

May $30,2022.$

Received Orange, Inc. stock worth $$10,000$ as a gift from his aunt, Jane, on June $17,2022.$

Her adjusted basis for the stock was $$8,000.$ No gift taxes were paid on the transfer. Jane

had purchased the stock on April $1,2014.$ Joseph sold the stock on July $1,2022,$ for

$$22,000.$

On July $15,2022,$ Joseph sold one$-$half of the Gabriel, Inc. stock for $$45,000.$

Joseph was notified on July $1,2022,$ that Yellow, Inc. stock he purchased from a colleague

on September $15,2021,$ for $$32,500$ had become worthless. While he perceived that the

investment was risky, he did not anticipate that the corporation would declare

bankruptcy.

On August $15,2022,$ Joseph received a parcel of land in Phoenix worth $$210,000$ in

exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth

$$235,000,$ he also received $$25,000$ cash. Joseph's adjusted basis for the Tucson parcel

was $$205,000.$ He originally purchased it on September $19,2015.$

On November $1,2022,$ Joseph sold the condominium in which he had been living for the

past $21$ years $(2000$ Smallhouse Lane, Tuscon, AZ $85701)$ and moved into a rented

townhouse. The sales price was $$450,000,$ selling expenses were $$20,500,$ and

repair$/$maintenance expenses for not previously properly maintaining the property

were $$9,400.$ Joseph purchased the condominium for $$175,000.$

Joseph's potential itemized deductions, exclusive of the aforementioned information, are

as follows:

During the year, Joseph makes estimated Federal income tax payments of $$30,000$

$($payments of $$7,500$ were made on April $15,2022,$ June $15,2022,$ Sept. $15,2022$ and

Dec. $15,2022).$

THIS RETURN IS FOR $2022-$ TAX LAWS IN EFFECT FOR $2022$ WILL APPLY

Compute Joseph's lowest net tax payable or refund due for $2022,$ making any available

elections to reduce the tax. The tax forms required for your computations are Forms $1040$

$($& Schedules $1-2),4562,8812,8995,8949,8824$ and Schedules A$,$ B$,$ C$,$ D$,$ and SE$.$ You

should include Form $8879,8867$ and the Transmittal Letter to Joseph. Complete the

$2022$ Federal tax return using $2022$ Intuit ProConnect Tax Software. Submit the filing

copy of the return in pdf format in D$2$L $($courses$)$ using the link under the assignments tab.

Tax Software Assignment # $3-$ Tax Return Problem

Joseph Grain, age $46$ and born $\frac{1}{1}\frac{?}{1976},$ is single. He lives at $3520$ Basecamp Road,

Tuscon, AZ $85701.$ His Social Security number is $406-11-1112.$ Joseph wants $$3$ to go to

the Presidential Election Campaign Fund.

Joseph's wife, Becky, passed away in June $2018.$ Joseph's son, Gilbert, who is age $16,$

resides with Joseph. Gilbert's Social Security number is $405-45-6788.$

Joseph owns a sole proprietorship for which he uses the accrual method of accounting

and maintains no inventory. The business operates as: Joe's Copy Shop, $422$ Kennedy

Blvd$,$ Albuquerque, NM $87131,$ IRS business activity code: $453990.$ His revenues and

expenses for $2022$ are as follows:

New office equipment $($$$18,000)$ placed in service $\frac{1}{1}\frac{?}{22}$; Joseph chose to use immediate expensing $179$ election

$**$$$15,000$ for employees benefit plan and $$5,000$ for Joseph

Other income received by Joseph includes the following:

During the year, Joseph and his business had the following property transactions:

Sold Biff, Inc. stock for $$42,000$ on March $15,2022.$ He had purchased the stock on

September $5,2018,$ for $$50,000.$