George and Martha Washington ask you to prepare their tax return for 2018. They give you the

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Question:

George and Martha Washington ask you to prepare their tax return for 2018. They give you the following information upon which to work.

1) George's social security number is 123-45-6789, while Martha's is 987-65-4321. The have two children: Derrick, ss# 111-11-1111 who is age 8 and Sharon, age 6, whose social security number is 222-22-2222. All four live at 987 Evergreen Lane, Freedonia, FL 10000.

2) George works for Mason Industries, Inc. His Form W-2 is attached. Martha works for St. Joseph's Prep School. Her W-2 is also attached.

3) George and Martha own a brokerage account and a savings account. They earned some interest and dividend income from these. Their Forms 1099 that indicate these amounts are attached.

The W-2s and 1099s can be accessed here:

https://nationalparalegal.edu/uploads/185forms for assignment 3 new.pdf

4) In addition, George and Martha made the following relevant stock transactions:

- They bought 200 shares the stock AAXX on Feb. 1, 2017 for $5,000. On March 10, 2017, they sold all 200 shares for $6,500.

- They bought 500 shares the stock BBX on Feb. 1, 2017 for $10,000. They sold those shares on April 15, 2017 for $12,200.

- They bought 600 shares of the stock CCC on January 15, 2017 for $13,000 and sold those same shares on March 15, 2017 for $12,100.

[Assume that all these numbers include brokerage fees and commissions.]

5) George and Martha own their home and they have a 30-year mortgage loan on their home. In 2017, they paid $8,500 in mortgage interest and $1,900 in property taxes. They also contributed a total of $2,000 in cash to Section 501(c)(3) charities.

6) In addition, George and Martha owned a summer home that they sold this year. They bought the house on December 1, 2007 for $75,000. On January 1, 2017, they sold the same house for $85,000. Assume that they had made $5,000 in capital improvements to the house. You may discount any depreciation that they may have taken in previous years.

How would you make a tax return (Form 1040) and all appropriate schedules for Martha and George.