Please use the information below to prepare an individual income tax return with the required schedules and
Question:
- Please use the information below to prepare an individual income tax return with the required schedules and attachments.
- All forms and instructions can be obtained from the IRS’s website at www.irs.gov. Please use schedules for 2018, which are uploaded to Blackboard for your convenience. To the extent you can, please apply the 2019 rules we learned in class (e.g., you will compare the total itemized deductions to the 2019 standard deduction amounts; you will use the 2019 from AGI limitations; and use the 2019 tax rates). You will use these forms:
Form 1040 Schedule A Schedule E
Schedule 1 Schedule B Schedule SE (Short Schedule)
Schedule 4 Schedule C Form 8949
Schedule 5 Schedule D Form 1040 Instructions
- The work is to be done in the assigned groups, same as Problem Set 2 assignment.
- Turn in all relevant completed forms and schedules, and any calculations if they are not already apparent in the form. Please organize them in the following order:
- Form 1040
- Schedule 1
- Schedule 4
- Schedule 5
- Schedule A
- Schedule B
- Schedule C
- Schedule SE (Short Schedule)
- Schedule D
- Form 8949
- Schedule E
- From Form 1040 Instructions, the applicable calculations for:
- Qualified Dividends and Capital Gains Tax: use p. 20 of 1040 Instructions
- Child Tax Credit: use pp. 42-43 of 1040 Instructions
- Please fill out the 360 feedback form (available on Blackboard) to evaluate your teammates. Email your form to me (ngan.nguyen@udc.edu) by the due date above.
Facts:
Don (age 48) and Nancy (age 46) Trumposi are married and file a joint tax return. Don is preparing the tax return. They reside at 1600 Lifeisanimpeachment Blvd., Boston, MA 02215 (phone number 617-456-1111), with their 12- and 8-year-old sons, Chuck and Mitch. Their Social Security numbers are:
Don 123-45-6789
Nancy 987-65-4321
Chuck 456-78-9012
Mitch 789-12-3456
Chuck and Mitch qualify for the Child Tax Credit.
Don is an online executive for the firm Twister LLP. In 2019, his wages are $145,000, of which $18,000 is withheld for (i.e., paid to) the IRS and $10,000 is withheld for (i.e., paid to) the Commonwealth of Massachusetts Department of Revenue.
Nancy has been a self-employed lawyer for many years (business code 541100). She has the following income and expenses for 2019 (cash basis):
Gross income from clients $30,000 (she does not need to file a Form 1099)
Advertising $ 6,000
Legal and professional services $ 1,000
Car expenses calculate
Libel insurance $ 2,000
Office expense $ 2,500
Repairs $ 500
Office rent $ 4,000 (at 1 Article Dr., Boston, MA 02115)
Nancy uses the standard mileage rate method. She drove her car a total of 1,600 miles for business during the year and maintained proper written documentation. She drove a total of 5,600 miles for business and pleasure during 2019. She placed her auto into service on 1/1/14. The vehicle is available during off-duty hours and another vehicle is available for personal use.
During 2019 she hosted other lawyers at a local restaurant several times, incurring a total of $6,000 in meals and $3,000 in entertainment. She discussed business at each of the meals and entertainment events and they were not extravagant.
During 2019, the Trumposis sold the following stock investments:
| Stock | Date of Purchase | Date of Sale | Cost | Sale Proceeds |
| 50 shares of Quidpro, Inc. | 4/10/15 | 9/15/19 | $10,000 | $9,000 |
| 100 shares of Whistle, Inc. | 8/30/19 | 11/30/19 | $8,000 | $5,500 |
| 150 shares of Blower Corp. | 2/25/11 | 5/20/19 | $10,000 | $14,000 |
| 500 shares of NSC Corp. | 3/15/19 | 12/15/19 | $4,000 | $2,500 |
| 1,000 shares of WaPo, Inc. | 9/15/14 | 12/19/19 | $1,750 | $4,500 |
(For Form 8949, fill out by checking Boxes A and D; do not fill out columns (f) or (g).)
The Trumposis own a multi-unit apartment building at 9 Supreme Ct., Lexington, MA 02215. The property was not used for personal purposes and had the following income and expenses:
Gross rental income $ 80,000 (They do not need to file a Form 1099)
Total cash inflow $ 80,000
Advertising $ 4,000
Legal fees $ 500
Insurance $ 10,000
Interest payments on mortgage $ 15,000
Principal payments on mortgage $ 20,000
Supplies $ 3,000
Repairs $ 3,500
Real Property Taxes $ 25,000
Utilities $ 9,000
Total cash outflow $ 90,000
Assume the building has already been fully depreciated.
The Trumposis earned the following interest during the year related to the following:
U.S. Treasury bonds (not EE or I) $ 5,000
City of Boston bonds $ 4,000
Boston Bank Savings Account $ 2,000
There were no foreign bank accounts. Do not attach Form 8815.
The Trumposis earned the following qualified dividends during the year related to the following:
Whistle, Inc. $1,500
Blower Corp. $1,000
Other expenses incurred by the Trumposis in 2019 are as follows (before any floors/ceilings):
Medical expenses $ 20,000
Charitable contributions in cash $ 5,000 (ignore instructions)
Mortgage interest on home $ 14,000 (all qualifying interest)
Property Taxes on home $ 8,000
Don’s unreimbursed employee expenses $ 1,000
During 2019, Nancy Trumposi made estimated tax payments of $4,000 to the IRS related to her business income.
Other:
If the tax return calculation yields a refund in Line 20a of Page 2 of the Form 1040, the Routing Number is 123789011 (Savings) and Account number is 6174561111. If the result yields a payment in Line 22, do not calculate an estimated tax penalty or fill out Form 1040-V.
Assume the Trumposis have full-year coverage for health care.
Ignore any tax credits other than the Child Tax Credit.
You do not need to prepare the Commonwealth of Massachusetts tax return.
Remember that the return has to be signed and dated!
Round all numbers to whole dollars (including itemized deductions, self-employment tax, the Total Tax, etc.).
- Please use the information below to prepare an individual income tax return with the required schedules and attachments.
- All forms and instructions can be obtained from the IRS’s website at www.irs.gov. Please use schedules for 2018, which are uploaded to Blackboard for your convenience. To the extent you can, please apply the 2019 rules we learned in class (e.g., you will compare the total itemized deductions to the 2019 standard deduction amounts; you will use the 2019 from AGI limitations; and use the 2019 tax rates). You will use these forms:
Form 1040 Schedule A Schedule E
Schedule 1 Schedule B Schedule SE (Short Schedule)
Schedule 4 Schedule C Form 8949
Schedule 5 Schedule D Form 1040 Instructions
- The work is to be done in the assigned groups, same as Problem Set 2 assignment.
- Turn in all relevant completed forms and schedules, and any calculations if they are not already apparent in the form. Please organize them in the following order:
- Form 1040
- Schedule 1
- Schedule 4
- Schedule 5
- Schedule A
- Schedule B
- Schedule C
- Schedule SE (Short Schedule)
- Schedule D
- Form 8949
- Schedule E
- From Form 1040 Instructions, the applicable calculations for:
- Qualified Dividends and Capital Gains Tax: use p. 20 of 1040 Instructions
- Child Tax Credit: use pp. 42-43 of 1040 Instructions
- Please fill out the 360 feedback form (available on Blackboard) to evaluate your teammates. Email your form to me (ngan.nguyen@udc.edu) by the due date above.
Facts:
Don (age 48) and Nancy (age 46) Trumposi are married and file a joint tax return. Don is preparing the tax return. They reside at 1600 Lifeisanimpeachment Blvd., Boston, MA 02215 (phone number 617-456-1111), with their 12- and 8-year-old sons, Chuck and Mitch. Their Social Security numbers are:
Don 123-45-6789
Nancy 987-65-4321
Chuck 456-78-9012
Mitch 789-12-3456
Chuck and Mitch qualify for the Child Tax Credit.
Don is an online executive for the firm Twister LLP. In 2019, his wages are $145,000, of which $18,000 is withheld for (i.e., paid to) the IRS and $10,000 is withheld for (i.e., paid to) the Commonwealth of Massachusetts Department of Revenue.
Nancy has been a self-employed lawyer for many years (business code 541100). She has the following income and expenses for 2019 (cash basis):
Gross income from clients $30,000 (she does not need to file a Form 1099)
Advertising $ 6,000
Legal and professional services $ 1,000
Car expenses calculate
Libel insurance $ 2,000
Office expense $ 2,500
Repairs $ 500
Office rent $ 4,000 (at 1 Article Dr., Boston, MA 02115)
Nancy uses the standard mileage rate method. She drove her car a total of 1,600 miles for business during the year and maintained proper written documentation. She drove a total of 5,600 miles for business and pleasure during 2019. She placed her auto into service on 1/1/14. The vehicle is available during off-duty hours and another vehicle is available for personal use.
During 2019 she hosted other lawyers at a local restaurant several times, incurring a total of $6,000 in meals and $3,000 in entertainment. She discussed business at each of the meals and entertainment events and they were not extravagant.
During 2019, the Trumposis sold the following stock investments:
| Stock | Date of Purchase | Date of Sale | Cost | Sale Proceeds |
| 50 shares of Quidpro, Inc. | 4/10/15 | 9/15/19 | $10,000 | $9,000 |
| 100 shares of Whistle, Inc. | 8/30/19 | 11/30/19 | $8,000 | $5,500 |
| 150 shares of Blower Corp. | 2/25/11 | 5/20/19 | $10,000 | $14,000 |
| 500 shares of NSC Corp. | 3/15/19 | 12/15/19 | $4,000 | $2,500 |
| 1,000 shares of WaPo, Inc. | 9/15/14 | 12/19/19 | $1,750 | $4,500 |
(For Form 8949, fill out by checking Boxes A and D; do not fill out columns (f) or (g).)
The Trumposis own a multi-unit apartment building at 9 Supreme Ct., Lexington, MA 02215. The property was not used for personal purposes and had the following income and expenses:
Gross rental income $ 80,000 (They do not need to file a Form 1099)
Total cash inflow $ 80,000
Advertising $ 4,000
Legal fees $ 500
Insurance $ 10,000
Interest payments on mortgage $ 15,000
Principal payments on mortgage $ 20,000
Supplies $ 3,000
Repairs $ 3,500
Real Property Taxes $ 25,000
Utilities $ 9,000
Total cash outflow $ 90,000
Assume the building has already been fully depreciated.
The Trumposis earned the following interest during the year related to the following:
U.S. Treasury bonds (not EE or I) $ 5,000
City of Boston bonds $ 4,000
Boston Bank Savings Account $ 2,000
There were no foreign bank accounts. Do not attach Form 8815.
The Trumposis earned the following qualified dividends during the year related to the following:
Whistle, Inc. $1,500
Blower Corp. $1,000
Other expenses incurred by the Trumposis in 2019 are as follows (before any floors/ceilings):
Medical expenses $ 20,000
Charitable contributions in cash $ 5,000 (ignore instructions)
Mortgage interest on home $ 14,000 (all qualifying interest)
Property Taxes on home $ 8,000
Don’s unreimbursed employee expenses $ 1,000
During 2019, Nancy Trumposi made estimated tax payments of $4,000 to the IRS related to her business income.
Other:
If the tax return calculation yields a refund in Line 20a of Page 2 of the Form 1040, the Routing Number is 123789011 (Savings) and Account number is 6174561111. If the result yields a payment in Line 22, do not calculate an estimated tax penalty or fill out Form 1040-V.
Assume the Trumposis have full-year coverage for health care.
Ignore any tax credits other than the Child Tax Credit.
You do not need to prepare the Commonwealth of Massachusetts tax return.
Remember that the return has to be signed and dated!
Round all numbers to whole dollars (including itemized deductions, self-employment tax, the Total Tax, etc.).
Expert Answer:
Forms and Schedules to Complete Form 1040 Schedule 1 Schedule 4 Schedule 5 Schedule A Schedule B Schedule C Schedule SE Short Schedule Schedule D Form 8949 Schedule E Key Information Personal Informat... View the full answer
