Required Use the following information to complete William Wyatt's 2021 federal income tax return If information...

 

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Required Use the following information to complete William Wyatt's 2021 federal income tax return If information is missing, use reasonable assumptions to fill in the gaps. You may need the following forms and schedules to complete the assignment: Form 1040, Schedule 1, Schedule 3, Schedule A, Schedule B, Schedule D, Schedule E, Form 8949, Form 2441 and possibly others. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS Web site (www.irs.gov). The instructions for the forms can be helpful and can be found on the IRS website. Also, use Form Finder in the TR Checkpoint library for additional line by line instructions. Facts: 1. William Wyatt (unmarried) is blind and lives in a home he purchased 25 years ago. William lived in his home with his two brothers, Duncan Wyatt and Griffin Wyatt for the entire year. Griffin is disabled and received $4,020 of income this year housesitting for neighbors. Griffin is able to save all of these funds because William provides all of Griffin's support. William also provides all of the support for his brother Duncan. Duncan is a painter and sold $3,620 of his work in 2021. William provided the following additional information: • The Wyatt's live at 3320 Rio Bravo Pass, El Paso, TX 79933. William's birthday is 2/18/1957 and his Social Security number is 514-77-1098. Griffin's birthday is 10/7/1955 and his Social Security number is 536-68-9340. Duncan's birthday is 7/1/1959 and his Social Security number is 522-19-2258 • • William does not have any foreign bank accounts or trusts, nor did he have any transactions with virtual currency. • A $500 nonrefundable credit for other dependents is available for each qualifying dependent (line 19 Form 1040). You do NOT need to use Schedule 8812. • William received all of the stimulus payments in which he qualified. 2. William is a lawyer and received a Form W-2 Holiday, Harper & Grey Law Firm (his employer) that contained the following information: • Wages: • Federal income tax withheld: • Social Security tax withheld: Medicare tax withheld: State income tax withheld: $149,000 19,300 8,854 2,060 0 3. William received $895 municipal bond interest income from City of Ft Davis Bonds, $1,295 in interest income from Western Corral Bank and $655 in interest from Heritage Bank. He also received a $6,265 dividend from Purple Sage Corp. and a $1,923 dividend from Dodge Inc. Both dividends were qualified dividends. 4. William sold some of his stock portfolio to pay for martial arts classes for Griffin. He sold 2,800 shares of Colt stock for $63 a share on July 26, 2021. He purchased the stock on May 21, 2002, for $51 a share. There was a commission charge of $203 on the sale of these shares. He also sold 4,112 shares of Silver Spur stock for $14 a share on October 1, 2021. He purchased the stock for $33 a share on April 2, 2008. Both of these sales were not reported to him on a 1099- B. 5. William's uncle, Jesse died on March 1, 2015, leaving William his entire estate. Included in the estate was Jesse's house (1777 Hickox Rd, El Paso, TX 79901). Jesse's basis in the residence was $182,000. The fair market value of the residence on the date of his death in 2015 was $301,000. William has used the property as a rental property since he received it and has managed it himself, however he is not a real estate professional. To compute the depreciation on the house, William has allocated $37,000 of the property's basis to the land and the remaining amount to the house. He has depreciated the house using the MACRS rules and conventions applicable to residential real estate. William collected $31,200 rent in 2021. The house was occupied during the entire year. He did not pay any contract labor that would require form 1099 for work related to this rental house. This property does not qualify for the Qualified Business Income Deduction. He incurred the following expenses related to the rental house during the year: Property Insurance Property Taxes Repairs Utilities Depreciation 6. The following is a record of the medical expenses that William paid during the year. The amounts reported are amounts he paid in excess of insurance reimbursements. Health Insurance premiums Prescription medications Prescription medications for Duncan $2,950 $4,720 $6,150 $3,923 To be computed Over-the-counter medications Doctor and dentists visits Eyeglasses $5,325 4,235 600 1,250 1,885 940 7. William paid $9,930 in mortgage interest during the year to RAZE credit union. The original loan balance on his loan was $528,000. During the year, William also paid $4,906 in real estate property taxes on his home, $3,790 real estate property taxes on a cabin he owns in Hot Springs, NM, and $1,919 on real estate property taxes on land in Hudspeth County, TX. 8. William contributed cash of $7,770 to the Community Church during the year. Community Church's address is 333 Narrow Way, El Paso, TX 79905. He has receipts 9. William paid $4,109 in Texas sales tax this year. He has kept all his receipts. 10. William paid $3,000 to Active Adult Daycare for Griffin's care while he was working. Active Adult DayCare employer id# is 85-8558733. They are located at 997 Wrangler Ave, El Paso, TX 79901 Required Use the following information to complete William Wyatt's 2021 federal income tax return If information is missing, use reasonable assumptions to fill in the gaps. You may need the following forms and schedules to complete the assignment: Form 1040, Schedule 1, Schedule 3, Schedule A, Schedule B, Schedule D, Schedule E, Form 8949, Form 2441 and possibly others. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS Web site (www.irs.gov). The instructions for the forms can be helpful and can be found on the IRS website. Also, use Form Finder in the TR Checkpoint library for additional line by line instructions. Facts: 1. William Wyatt (unmarried) is blind and lives in a home he purchased 25 years ago. William lived in his home with his two brothers, Duncan Wyatt and Griffin Wyatt for the entire year. Griffin is disabled and received $4,020 of income this year housesitting for neighbors. Griffin is able to save all of these funds because William provides all of Griffin's support. William also provides all of the support for his brother Duncan. Duncan is a painter and sold $3,620 of his work in 2021. William provided the following additional information: • The Wyatt's live at 3320 Rio Bravo Pass, El Paso, TX 79933. William's birthday is 2/18/1957 and his Social Security number is 514-77-1098. Griffin's birthday is 10/7/1955 and his Social Security number is 536-68-9340. Duncan's birthday is 7/1/1959 and his Social Security number is 522-19-2258 • • William does not have any foreign bank accounts or trusts, nor did he have any transactions with virtual currency. • A $500 nonrefundable credit for other dependents is available for each qualifying dependent (line 19 Form 1040). You do NOT need to use Schedule 8812. • William received all of the stimulus payments in which he qualified. 2. William is a lawyer and received a Form W-2 Holiday, Harper & Grey Law Firm (his employer) that contained the following information: • Wages: • Federal income tax withheld: • Social Security tax withheld: Medicare tax withheld: State income tax withheld: $149,000 19,300 8,854 2,060 0 3. William received $895 municipal bond interest income from City of Ft Davis Bonds, $1,295 in interest income from Western Corral Bank and $655 in interest from Heritage Bank. He also received a $6,265 dividend from Purple Sage Corp. and a $1,923 dividend from Dodge Inc. Both dividends were qualified dividends. 4. William sold some of his stock portfolio to pay for martial arts classes for Griffin. He sold 2,800 shares of Colt stock for $63 a share on July 26, 2021. He purchased the stock on May 21, 2002, for $51 a share. There was a commission charge of $203 on the sale of these shares. He also sold 4,112 shares of Silver Spur stock for $14 a share on October 1, 2021. He purchased the stock for $33 a share on April 2, 2008. Both of these sales were not reported to him on a 1099- B. 5. William's uncle, Jesse died on March 1, 2015, leaving William his entire estate. Included in the estate was Jesse's house (1777 Hickox Rd, El Paso, TX 79901). Jesse's basis in the residence was $182,000. The fair market value of the residence on the date of his death in 2015 was $301,000. William has used the property as a rental property since he received it and has managed it himself, however he is not a real estate professional. To compute the depreciation on the house, William has allocated $37,000 of the property's basis to the land and the remaining amount to the house. He has depreciated the house using the MACRS rules and conventions applicable to residential real estate. William collected $31,200 rent in 2021. The house was occupied during the entire year. He did not pay any contract labor that would require form 1099 for work related to this rental house. This property does not qualify for the Qualified Business Income Deduction. He incurred the following expenses related to the rental house during the year: Property Insurance Property Taxes Repairs Utilities Depreciation 6. The following is a record of the medical expenses that William paid during the year. The amounts reported are amounts he paid in excess of insurance reimbursements. Health Insurance premiums Prescription medications Prescription medications for Duncan $2,950 $4,720 $6,150 $3,923 To be computed Over-the-counter medications Doctor and dentists visits Eyeglasses $5,325 4,235 600 1,250 1,885 940 7. William paid $9,930 in mortgage interest during the year to RAZE credit union. The original loan balance on his loan was $528,000. During the year, William also paid $4,906 in real estate property taxes on his home, $3,790 real estate property taxes on a cabin he owns in Hot Springs, NM, and $1,919 on real estate property taxes on land in Hudspeth County, TX. 8. William contributed cash of $7,770 to the Community Church during the year. Community Church's address is 333 Narrow Way, El Paso, TX 79905. He has receipts 9. William paid $4,109 in Texas sales tax this year. He has kept all his receipts. 10. William paid $3,000 to Active Adult Daycare for Griffin's care while he was working. Active Adult DayCare employer id# is 85-8558733. They are located at 997 Wrangler Ave, El Paso, TX 79901

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To complete William Wyatts 2021 federal income tax return you would need the following forms and schedules Form 1040 Schedule 1 Schedule 3 Schedule A ... View the full answer