Appendix E Practice Set Assignments- Comprehensive Tax Return Problems PROBLEM 1-INDIVIDUALS (FORM 1040) A proconnect Roger R. and Michelle N. Stewart (ages and are married and live til Cody Way. Caper, WY 2009 Kerisa ng engineer and Michelle auralel They file 1. Trained as a mining engineer Raper has developed considerable expertise in Federal and state requirements for land roamation peut Bager operates a muling Dress the wide vis clients in the malles Roger' D e s activity code is 541940. Most of the clients are small and medium- mine owo c ated in Woming and continue Manna Idaho Utah, Usualy. Roger is ruined by a client on a contract fee basis and is reimbund for all m-of-ukte In performing his TVIRA R Holly visit the jal sile and later is his re l atin wil Illy with a statens V es. R iche following amounts from his conting business in 2019 58.200 Transportation arport mor al Subtoor expense reimbursement 5111221 Boger also provided services for the following companies from his office; there from there a r e the fresnost induk in the recipes lisaxl in m al Echining Work darwin December 2016.p ant January 2010 $5,100 Sesa Mining Work done in December 2017. payment received any 2013 4.400 Commorant Mining:Work done in March 2018 no payment received to dye 370 Since Commant Mining is currently in bankruptcy. Roger does not expect to collect any of this fee. - APPENDIXE APPENDIXE PHAwesome T EJ Combo HR 100g CRM pen Premiunts on red ca ince p e and dependenti Spinunciare made hoc munggap ni pe Parting increme Michle is a license parlalandis empl om ulime si al . She was in their c odices en els al 9 AM and three days a week. She cow .ced a wock in the family Suburban and a total of 813 miles and un purking fees af $310. Her coming and jebul STORITEIXI x Flux 550.000 Business phone and merret Combined was from the Subscriptions and dusslo professional organizations Continuing education correspondence course Occupational deve Subs prior to temas + Reproper conting business couran like in his home my per x W x wlascia comune 1211 AL time the home had fair market value oc $200,000 $10,000 of which was allocated to be land. The Newars moved into the home in autumn of 21 and Roger immediately set up a bome chce The bome's u nfair marset values 3500 x ile s Crnir ox father bought the land i 1972 . and the. 1970 al acoso SO 030. Roger de pceciates the beness use of his home using SACHS. Additional 2018 costs o the lame are as follows Sirxe Midweis auar-me umplex, Timpa nel c he il relaced expenses. The comespondence course is required continuing education so that she can retain her loense, Schelle is thinking about applying to law schod which would require her for the ISAT sam. During 2018, the spent $350 an ISAT CENI Because Michelle is a game coloreeshe is not covered by way of her employers' medical or retirement plans. During 2018 she contributed $5.500 to a traditional IRA that she had established several years ago. The Steauns use the automatic mileage method to calculate any tax deduction to which they are SHO The 15 property taxes and more interest arested in item 15. In addi on to the repairs and manance noted above, Buskerad the office repared al alle al 13X1. Ouer the years, Roger la properly deducte the cost of all the furniture and equipment used his oike either as 179 expense of bonus depreciation the year these assets were placed in some on March 1, 2011, Roser purchased a heavy-ziniy, frere like cahing will cry a abrir $40 He :: hel lbild aniline il clit Can sistent with US , Ruger avaid and providing the cabinet the law allows With funcil nan the salem listu, per parcul rental poly al 4620 Co n e Of the $290,00 purchase price $70,0XD was allocated to the and. A an 50,00 T atian to the housele. replaced the roof incalled new floonng throughout the house, and installed a new furnace the 34 T o nning Per 1, 2012. in 316 Si loxxl w l werk maktable if he wa fully fully the N W nur and appliances. All of the furnishings were placed in service May 1, 2016. The Sew ans did not claim 179 espenge or bous depreciation for the rear the assets We ploed in service Under the current l e preement, the peoperty rene for $2.200 a monile Rent is due the day of each month Utilities are not included in the rent. Commation regarding the property for 2018 is as follows: Renteved Proper t y insurance premiumspais Property taxes pel Yard manance paid Repairs T Cho greg under 5,000 y ds ouder was invoked, ar bech mest omny 19 denen the relax itulorating challen i NACAS See Table in Dea ctions in Form 1562. His operating expenses for the Infinir 18 re as folos: Thx wil includes $2,211 Fierry 2019 The Inspire par the in maxmxxsech malam during ChriNi Yandidays. In kitambathely listed le pidael tax assessment of $1,900 to the Cry of Caper for reparing the street in froer of the property: The Stewas se MACUS to depreciate the rental home and the fumihings within The und 1 X Who com ck in Com Mining on Manh 72), birinimeni un vist Company in late 20.0, Submiting a bill for $1. XI. Hecae Cano s expe Ciencing cash flow problems at the time, Roger accepted the stock as payment for his services. Unfortunately, Common is currently in bankruptcy (see bem z In bike: 2018, txuku pe t ulle will cond sluncers will see on with respect to the equity investments in the pany. The stock is ac pullicly waded al changes and lubration Loe se androginio B e the imala 14,100 milching 2018, 13.0911 of whid were driven for besness purposes. During business lise, Hoger received the mwing the o ne for which he pak fires, Leasingured als and aking care of 14 APPENDIXE Prat s APPENINE Panca - -5 15 Inchitin malay mlec, the Seas lahe killing expendi- On Mann, 1997. Refle the Swapitulala Ten County i n it. I have a 1003 hete the it and nailt ux I t o be pakol the transfer. The Tunched by us fathe June 1, 138, for 350. In December 2012 Tallery Six men her in the pre- try. Alter Exa mpliams, Swart gallerie T. return for $. in cash and four city.ols in Lanamie I WY t h $72.000 from the developer The Sewer considered the chylous to be a good invest ment because dey are located in a part of the city that experiencing nilicant jorrath The exchange du m arch 4. 2016. The multe devem pod Dor all c o sts and legales relied to the exchange Beribented an antique qua collect an his aber when he died. All Medical and dental bills for the Stewarts Rocher dan those dating to van see item 131 Charitable combustinding plads, som 131 Advloen property was on personal residence Interest on home equitysnused to trance the purchase of recreational whirlpin April 2016 had a date of death value of $22.00 'Til lex lon BUT : Cancemed about the maicenance and I lear for 291X11 lul 10, 2018 16 K. Wyning laste locul inxmix T LSS general sales tax. The county in which they live imposes an additional local sales tax E I'A hough they do noc keep track of the sales taxes, the Stars paid $1.60) Esiles as on the next mal vehicle they purchased in April 2018 Benks hin 1), the Si houseklindudes ochuhen Mckenna age 19 and Kalixha 10), and Jarede 14McKenna graduated from high school in 2017. She earned $19,000 during 2018, all of which she put into her college svings account. She heads of college in fall 2019. Kayleigh and Jared are full-time students in high school and middle school S tively. Kaykils $1800 in a while she puller o i Michel SEX ring line in Aupust 2, 2017. se l an I lica 71,00 Tailer o teule, Michelle receive down payment of $15,000 and 10 aaalala r Michele w simple interest of the Dund- ng principal plan och Michelle regte the intensiale ne is akinin the risk of lirimin this sc i nar En Michelle collected $10.900 on August 2 2018, from the mander SS cn the note and interest of $ The S h ad several Schedule D ictions during 2017 that Betted to 2 bot-term capical loss of 57,0% of this loss, $5,000 was deducted in 2017. and $40 anked to 2018 17. For las year 2017, the wastad Federal income Tax Tyme $50 which they applied toward the 2018 income tax. Michele's income Tax with hold for the year 2 35,100), and the Stars made Federal quarterly tax paymenistling $12IXK(300 och inliment) 18 Bela Sexta Semy numbers are as follox yes and his claim them a dien . Denne 2017, Vivian sultered leat auck Altera low days in the ICU of a local hospital, Vivian dict 00 anar 2018 in each cury IN the Swarts pakl the song experies vir: 51740 Bumi kasparse nourred 2017 nel cu Medikame Medical expenses nourred in 2018 not web, Nedicare Rem orch.ch pede for DIA Rexi onal and challex Vivian's Tr ul waliingir I pye t Wide R $45000 desch benefits oc arch 90. 2018. In addition to the terms already noted, Stewars had the following recepos during 2018: Requirements Prepare a 2018 Federal income tax return with appropriate supporting and sched ules for the Soewarts. In doing this, follow these guidelines Make nesciry a mpions for infremtim Even het neucle to complete ClyfChene unatal Barabarth Certificate of ckpostas Pargo Bank Mongmy COUNT Bank of Americ The Shwari pering their n um The Stewars have the m y written in eixin support the transactions reported in their tax return . If the Stewars have an overpayment of wax, they want applied to their 2019 estimated axes The Stewarts do not wish to contribute to the Presidential Election Campaign Fund At their yani ile the Seas d e furniture books toys, dhe Excedes vingan E l original $1.-XI in with cured wees olor parking $15 for meals Appendix E Practice Set Assignments- Comprehensive Tax Return Problems PROBLEM 1-INDIVIDUALS (FORM 1040) A proconnect Roger R. and Michelle N. Stewart (ages and are married and live til Cody Way. Caper, WY 2009 Kerisa ng engineer and Michelle auralel They file 1. Trained as a mining engineer Raper has developed considerable expertise in Federal and state requirements for land roamation peut Bager operates a muling Dress the wide vis clients in the malles Roger' D e s activity code is 541940. Most of the clients are small and medium- mine owo c ated in Woming and continue Manna Idaho Utah, Usualy. Roger is ruined by a client on a contract fee basis and is reimbund for all m-of-ukte In performing his TVIRA R Holly visit the jal sile and later is his re l atin wil Illy with a statens V es. R iche following amounts from his conting business in 2019 58.200 Transportation arport mor al Subtoor expense reimbursement 5111221 Boger also provided services for the following companies from his office; there from there a r e the fresnost induk in the recipes lisaxl in m al Echining Work darwin December 2016.p ant January 2010 $5,100 Sesa Mining Work done in December 2017. payment received any 2013 4.400 Commorant Mining:Work done in March 2018 no payment received to dye 370 Since Commant Mining is currently in bankruptcy. Roger does not expect to collect any of this fee. - APPENDIXE APPENDIXE PHAwesome T EJ Combo HR 100g CRM pen Premiunts on red ca ince p e and dependenti Spinunciare made hoc munggap ni pe Parting increme Michle is a license parlalandis empl om ulime si al . She was in their c odices en els al 9 AM and three days a week. She cow .ced a wock in the family Suburban and a total of 813 miles and un purking fees af $310. Her coming and jebul STORITEIXI x Flux 550.000 Business phone and merret Combined was from the Subscriptions and dusslo professional organizations Continuing education correspondence course Occupational deve Subs prior to temas + Reproper conting business couran like in his home my per x W x wlascia comune 1211 AL time the home had fair market value oc $200,000 $10,000 of which was allocated to be land. The Newars moved into the home in autumn of 21 and Roger immediately set up a bome chce The bome's u nfair marset values 3500 x ile s Crnir ox father bought the land i 1972 . and the. 1970 al acoso SO 030. Roger de pceciates the beness use of his home using SACHS. Additional 2018 costs o the lame are as follows Sirxe Midweis auar-me umplex, Timpa nel c he il relaced expenses. The comespondence course is required continuing education so that she can retain her loense, Schelle is thinking about applying to law schod which would require her for the ISAT sam. During 2018, the spent $350 an ISAT CENI Because Michelle is a game coloreeshe is not covered by way of her employers' medical or retirement plans. During 2018 she contributed $5.500 to a traditional IRA that she had established several years ago. The Steauns use the automatic mileage method to calculate any tax deduction to which they are SHO The 15 property taxes and more interest arested in item 15. In addi on to the repairs and manance noted above, Buskerad the office repared al alle al 13X1. Ouer the years, Roger la properly deducte the cost of all the furniture and equipment used his oike either as 179 expense of bonus depreciation the year these assets were placed in some on March 1, 2011, Roser purchased a heavy-ziniy, frere like cahing will cry a abrir $40 He :: hel lbild aniline il clit Can sistent with US , Ruger avaid and providing the cabinet the law allows With funcil nan the salem listu, per parcul rental poly al 4620 Co n e Of the $290,00 purchase price $70,0XD was allocated to the and. A an 50,00 T atian to the housele. replaced the roof incalled new floonng throughout the house, and installed a new furnace the 34 T o nning Per 1, 2012. in 316 Si loxxl w l werk maktable if he wa fully fully the N W nur and appliances. All of the furnishings were placed in service May 1, 2016. The Sew ans did not claim 179 espenge or bous depreciation for the rear the assets We ploed in service Under the current l e preement, the peoperty rene for $2.200 a monile Rent is due the day of each month Utilities are not included in the rent. Commation regarding the property for 2018 is as follows: Renteved Proper t y insurance premiumspais Property taxes pel Yard manance paid Repairs T Cho greg under 5,000 y ds ouder was invoked, ar bech mest omny 19 denen the relax itulorating challen i NACAS See Table in Dea ctions in Form 1562. His operating expenses for the Infinir 18 re as folos: Thx wil includes $2,211 Fierry 2019 The Inspire par the in maxmxxsech malam during ChriNi Yandidays. In kitambathely listed le pidael tax assessment of $1,900 to the Cry of Caper for reparing the street in froer of the property: The Stewas se MACUS to depreciate the rental home and the fumihings within The und 1 X Who com ck in Com Mining on Manh 72), birinimeni un vist Company in late 20.0, Submiting a bill for $1. XI. Hecae Cano s expe Ciencing cash flow problems at the time, Roger accepted the stock as payment for his services. Unfortunately, Common is currently in bankruptcy (see bem z In bike: 2018, txuku pe t ulle will cond sluncers will see on with respect to the equity investments in the pany. The stock is ac pullicly waded al changes and lubration Loe se androginio B e the imala 14,100 milching 2018, 13.0911 of whid were driven for besness purposes. During business lise, Hoger received the mwing the o ne for which he pak fires, Leasingured als and aking care of 14 APPENDIXE Prat s APPENINE Panca - -5 15 Inchitin malay mlec, the Seas lahe killing expendi- On Mann, 1997. Refle the Swapitulala Ten County i n it. I have a 1003 hete the it and nailt ux I t o be pakol the transfer. The Tunched by us fathe June 1, 138, for 350. In December 2012 Tallery Six men her in the pre- try. Alter Exa mpliams, Swart gallerie T. return for $. in cash and four city.ols in Lanamie I WY t h $72.000 from the developer The Sewer considered the chylous to be a good invest ment because dey are located in a part of the city that experiencing nilicant jorrath The exchange du m arch 4. 2016. The multe devem pod Dor all c o sts and legales relied to the exchange Beribented an antique qua collect an his aber when he died. All Medical and dental bills for the Stewarts Rocher dan those dating to van see item 131 Charitable combustinding plads, som 131 Advloen property was on personal residence Interest on home equitysnused to trance the purchase of recreational whirlpin April 2016 had a date of death value of $22.00 'Til lex lon BUT : Cancemed about the maicenance and I lear for 291X11 lul 10, 2018 16 K. Wyning laste locul inxmix T LSS general sales tax. The county in which they live imposes an additional local sales tax E I'A hough they do noc keep track of the sales taxes, the Stars paid $1.60) Esiles as on the next mal vehicle they purchased in April 2018 Benks hin 1), the Si houseklindudes ochuhen Mckenna age 19 and Kalixha 10), and Jarede 14McKenna graduated from high school in 2017. She earned $19,000 during 2018, all of which she put into her college svings account. She heads of college in fall 2019. Kayleigh and Jared are full-time students in high school and middle school S tively. Kaykils $1800 in a while she puller o i Michel SEX ring line in Aupust 2, 2017. se l an I lica 71,00 Tailer o teule, Michelle receive down payment of $15,000 and 10 aaalala r Michele w simple interest of the Dund- ng principal plan och Michelle regte the intensiale ne is akinin the risk of lirimin this sc i nar En Michelle collected $10.900 on August 2 2018, from the mander SS cn the note and interest of $ The S h ad several Schedule D ictions during 2017 that Betted to 2 bot-term capical loss of 57,0% of this loss, $5,000 was deducted in 2017. and $40 anked to 2018 17. For las year 2017, the wastad Federal income Tax Tyme $50 which they applied toward the 2018 income tax. Michele's income Tax with hold for the year 2 35,100), and the Stars made Federal quarterly tax paymenistling $12IXK(300 och inliment) 18 Bela Sexta Semy numbers are as follox yes and his claim them a dien . Denne 2017, Vivian sultered leat auck Altera low days in the ICU of a local hospital, Vivian dict 00 anar 2018 in each cury IN the Swarts pakl the song experies vir: 51740 Bumi kasparse nourred 2017 nel cu Medikame Medical expenses nourred in 2018 not web, Nedicare Rem orch.ch pede for DIA Rexi onal and challex Vivian's Tr ul waliingir I pye t Wide R $45000 desch benefits oc arch 90. 2018. In addition to the terms already noted, Stewars had the following recepos during 2018: Requirements Prepare a 2018 Federal income tax return with appropriate supporting and sched ules for the Soewarts. In doing this, follow these guidelines Make nesciry a mpions for infremtim Even het neucle to complete ClyfChene unatal Barabarth Certificate of ckpostas Pargo Bank Mongmy COUNT Bank of Americ The Shwari pering their n um The Stewars have the m y written in eixin support the transactions reported in their tax return . If the Stewars have an overpayment of wax, they want applied to their 2019 estimated axes The Stewarts do not wish to contribute to the Presidential Election Campaign Fund At their yani ile the Seas d e furniture books toys, dhe Excedes vingan E l original $1.-XI in with cured wees olor parking $15 for meals