Henry and Tammy Olson reside at 4313 Coyote Lane, Fort Collins CO (80524) with their twelve-year-old...

  

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Henry and Tammy Olson reside at 4313 Coyote Lane, Fort Collins CO (80524) with their twelve-year-old daughter Linda (333-44-5555) and sons Steven (555-43-1212, age 19) and Jeremy (567-89-1234, age 15). Steven is a full-time student at CSU. Henry's social security number is 444-22-1010 and Tammy's is 987- 65-4321. Henry is self-employed, doing business as "Handy Hank's Service," and Tammy is a bank manager. Her W-2 shows salary of $57,998, federal income tax withholding of $4,385, and state income tax withholding of $2,540. The Olsons had interest income from Third National Bank of $334. Vail Mutual Fund reported income to them as follows: ordinary qualified dividends, $642; interest, $187; municipal bond interest, $1,412; capital gain distributions, $682. Etrade Brokerage reported that they sold 100 shares of ABC Corp. on October 6 for $4,682, and that they had purchased the shares on January 12, 2014 for $3,126. They received ordinary qualified dividends of $72 on this stock before they sold it. The Olsons have a short- term capital loss carryover of $389. The Olsons own two houses: the one on Coyote Lane in which they reside, and one at 529 Bronco Court in Fort Collins CO (80525), which they rent out and actively manage. Rent income was $17,300 for the ye Information about the two houses: Cost (Land) Cost (Building) Mortgage Interest Property Tax Insurance Maintenance Utilities Coyote 60,000 256,000 3,153 2,265 822 1,525 6,421 Bronco 40,000 196,000 2,509 1,721 1,105 1,830 -0- Personal expenses for the Olsons include: cash charitable donations, $1,260; medical expenses, $2,272. Their estimated tax payments paid during 2019 were: federal, $6,000; state, $2,000. In 2019, they paid their state income tax balance due for 2018 of $425. Henry contributed $2,000 each to his traditional and Roth IRAs during the year. He has no other tax-favored retirement plan. Henry had gross income from his business of $89,794. His expenses include: Advertising Equipment rental Liability insurance Legal and acct fees Licenses and permits Supplies Telephone Miscellaneous $ 1,850 2,140 918 1,360 922 21,587 1,332 466 During the year he bought small tools for $3,975. Henry put 51,220 miles on his business van during the year, for which he kept adequate records. He does not use the van for personal purposes. He operates out of an office in his home, which occupies 242 of the 3,025 square feet of the residence. Henry uses the cash method of accounting to maintain his business records, and does not have any inventory. He does not have any depreciable personalty. Required: Part 1: Prepare Schedule C and Schedule SE for Henry Olson, along with Form 8829, for 2019. Part 2: Prepare the 2019 federal income tax return for Henry and Tammy Olson. Attach all necessary forms and schedules in the proper order. You do not need to resubmit the forms and schedules from part 1. You do not need to submit Form 8949. You must attach a hand-written schedule showing your income tax calculation. Note: You will need to refer to the instructions for Form 1040 and the related schedules. IRS Publication 17 contains general information on preparing individual returns. Round all amounts to the nearest dollar, and do not enter zeroes unless called for. You may NOT use tax software on this project. Henry and Tammy Olson reside at 4313 Coyote Lane, Fort Collins CO (80524) with their twelve-year-old daughter Linda (333-44-5555) and sons Steven (555-43-1212, age 19) and Jeremy (567-89-1234, age 15). Steven is a full-time student at CSU. Henry's social security number is 444-22-1010 and Tammy's is 987- 65-4321. Henry is self-employed, doing business as "Handy Hank's Service," and Tammy is a bank manager. Her W-2 shows salary of $57,998, federal income tax withholding of $4,385, and state income tax withholding of $2,540. The Olsons had interest income from Third National Bank of $334. Vail Mutual Fund reported income to them as follows: ordinary qualified dividends, $642; interest, $187; municipal bond interest, $1,412; capital gain distributions, $682. Etrade Brokerage reported that they sold 100 shares of ABC Corp. on October 6 for $4,682, and that they had purchased the shares on January 12, 2014 for $3,126. They received ordinary qualified dividends of $72 on this stock before they sold it. The Olsons have a short- term capital loss carryover of $389. The Olsons own two houses: the one on Coyote Lane in which they reside, and one at 529 Bronco Court in Fort Collins CO (80525), which they rent out and actively manage. Rent income was $17,300 for the ye Information about the two houses: Cost (Land) Cost (Building) Mortgage Interest Property Tax Insurance Maintenance Utilities Coyote 60,000 256,000 3,153 2,265 822 1,525 6,421 Bronco 40,000 196,000 2,509 1,721 1,105 1,830 -0- Personal expenses for the Olsons include: cash charitable donations, $1,260; medical expenses, $2,272. Their estimated tax payments paid during 2019 were: federal, $6,000; state, $2,000. In 2019, they paid their state income tax balance due for 2018 of $425. Henry contributed $2,000 each to his traditional and Roth IRAs during the year. He has no other tax-favored retirement plan. Henry had gross income from his business of $89,794. His expenses include: Advertising Equipment rental Liability insurance Legal and acct fees Licenses and permits Supplies Telephone Miscellaneous $ 1,850 2,140 918 1,360 922 21,587 1,332 466 During the year he bought small tools for $3,975. Henry put 51,220 miles on his business van during the year, for which he kept adequate records. He does not use the van for personal purposes. He operates out of an office in his home, which occupies 242 of the 3,025 square feet of the residence. Henry uses the cash method of accounting to maintain his business records, and does not have any inventory. He does not have any depreciable personalty. Required: Part 1: Prepare Schedule C and Schedule SE for Henry Olson, along with Form 8829, for 2019. Part 2: Prepare the 2019 federal income tax return for Henry and Tammy Olson. Attach all necessary forms and schedules in the proper order. You do not need to resubmit the forms and schedules from part 1. You do not need to submit Form 8949. You must attach a hand-written schedule showing your income tax calculation. Note: You will need to refer to the instructions for Form 1040 and the related schedules. IRS Publication 17 contains general information on preparing individual returns. Round all amounts to the nearest dollar, and do not enter zeroes unless called for. You may NOT use tax software on this project.

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The Olsons are a family of five residing at 4313 Coyote Lane in Fort Collins Colorado 80524 Henry and Tammy Olson have three children Linda age 12 Steven age 19 and Jeremy age 15 Henry is selfemployed ... View the full answer