Chapter $7$ TRP $7-3$

Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year.

Pat and Jordan Beber are married and file a joint return in $2023.$ They live at $12345$ Hemenway Avenue, Marlborough, MA $01752.$ Pat is a self$-$employed tax preparer whose SSN is $412-34-5670.$ Jordan is a software programmer whose SSN is $412-34-5671.$ Jordan had the following income and expenses for the year:

Jordan's W$-2$:$$Gross wages$ $102,676$Social Security tax$6,366$Medicare tax$1,488$Federal withholding tax$17,735$State withholding tax$4,826$

Pat was the sole proprietor of NAMA Tax Service. The business is located at $123$ Main Street, Marlborough, MA $01752,$ and the business code is $541213.$ Pat had the following revenue and expenses $($Cash basis$)$:

Revenue$ $80,000$Expenses:$$Advertising$1,200$Insurance$3,200$Telephone$2,400$Office rent$18,000$Utilities$4,800$Office supplies$5,000$Depreciation$6,041($must be allocated to the $1231$ assets listed next$)$

Pat had the following business assets:

Office furniture: Purchased for $$4,950$ on May $20,2021.$ The equipment is being depreciated over seven$-$year MACRS $200\%$ declining balance. Pat sold it on May $15,2023,$ for $$4,000.$

Office equipment: Purchased a copier for $$13,800$ on January $10,2023.$ The copier is being depreciated over five$-$year MACRS $200\%$ declining balance. Pat makes no elections for $179$ or bonus depreciation.

Computer and equipment: Purchased a computer system for $$8,900$ on January $2,2022.$ The computer is being depreciated over five$-$year MACRS $200\%$ declining balance. Pat makes no elections for $179$ or bonus depreciation.

Pat and Jordan had the following other sources of income and deductions:

Interest from a CD in the amount of $$1,480.$

Long$-$term loss carryover from $2022$ of $$5,000.$

Real estate taxes of $$8,579.$

Home mortgage interest of $$16,600.$

Charitable contributions in cash over the year of $$3,000$; all receipts and acknowledgments were received from the charitable organizations.

Pat has made four quarterly installments of $$250$ each as estimated taxes for $2023.$ All estimated tax payments were paid by the due date using the $1040-$ES coupons.

Required:

Prepare Form $1040$ and all related schedules, forms, and worksheets for Pat and Jordan Beber for $2023.$ The Bebers do not donate to the presidential election campaign. Use the appropriate Tax Tables, Tax Rate Schedules and Depreciation Tables $(6$A$-1,6$A$-2,6$A$-3,6$A$-4$ and $6$A$-5).$

Note: Instructions can be found on certain cells within the forms. List the names of the taxpayers in the order in$$which they appear in the problem. Indicate losses with minus sign and enter all other values as positive amounts. Round your intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount.

JUST HELP WITH DESPERATION PARTS THANKS $!!$