TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery...

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TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 * May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-2 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 1st Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 58.33 35.00 25.00 19.50 8.75 6.563 2 27.78 26.00 21.43 16.50 9.13 7.000 3 12.35 15.60 15.31 13.20 8.21 6.482 4 1.54 11.01 10.93 10.56 7.39 5.996 5 11.01 8.75 8.45 6.65 5.546 6 1.38 8.74 6.76 5.99 5.130 7 8.75 6.55 5.90 4.746 8 1.09 6.55 5.91 4.459 9 6.56 5.90 4.459 10 6.55 5.91 4.459 11 0.82 5.90 4.459 12 5.91 4.460 13 5.90 4.459 14 5.91 4.460 15 5.90 4.459 16 0.74 4.460 17 4.459 18 4.460 19 4.459 20 4.460 21 0.557 * May not be used for farm business property generally placed in service after 1988. See Table 15, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-3 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 2nd Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 41.67 25.00 17.85 12.50 6.25 4.688 2 38.89 30.00 23.47 17.50 9.38 7.148 3 14.14 18.00 16.76 14.00 8.44 6.612 4 5.30 11.37 11.97 11.20 7.59 6.116 5 11.37 8.87 8.96 6.83 5.658 6 4.26 8.87 7.17 6.15 5.233 7 8.87 6.55 5.91 4.841 8 3.33 6.55 5.90 4.478 9 6.56 5.91 4.463 10 6.55 5.90 4.463 11 2.46 5.91 4.463 12 5.90 4.463 13 5.91 4.463 14 5.90 4.463 15 5.91 4.462 16 2.21 4.463 17 4.462 18 4.463 19 4.462 20 4.463 21 * May not be used for farm business property generally placed in service after 1988. See Table 16, Rev. Proc. 87-57, 1987-2 CB 687. 1.673 TABLE 6A-4 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 3rd Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 25.00 15.00 10.71 7.50 3.75 2.813 2 50.00 34.00 25.51 18.50 9.63 7.289 3 16.67 20.40 18.22 14.80 8.66 6.742 4 16.67 12.24 13.02 11.84 7.80 6.237 5 8.33 11.30 9.30 9.47 7.02 5.769 6 7.06 8.85 7.58 6.31 5.336 7 8.86 6.55 5.90 4.936 8 5.53 6.55 5.90 4.566 9 6.56 5.91 4.460 10 6.55 5.90 4.460 11 4.10 5.91 4.460 12 5.90 4.460 13 5.91 4.461 14 5.90 4.460 15 5.91 4.461 16 3.69 4.460 17 4.461 18 4.460 19 4.461 20 4.460 21 2.788 * May not be used for farm business property generally placed in service after 1988. See Table 17, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-5 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 4th Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 8.33 5.00 3.57 2.50 1.25 0.938 2 61.11 38.00 27.55 19.50 9.88 7.430 3 20.37 22.80 19.68 15.60 8.89 6.872 4 10.19 13.68 14.06 12.48 8.00 6.357 5 10.94 10.04 9.98 7.20 5.880 6 9.58 8.73 7.99 6.48 5.439 7 8.73 6.55 5.90 5.031 8 7.64 6.55 5.90 4.654 9 6.56 5.90 4.458 10 6.55 5.91 4.458 11 5.74 5.90 4.458 12 5.91 4.458 13 5.90 4.458 14 5.91 4.458 15 5.90 4.458 16 5.17 4.458 17 4.458 18 4.459 19 4.458 20 4.459 21 3.901 * May not be used for farm business property generally placed in service after 1988. See Table 18, Rev. Proc. 87-57, 1987-2 CB 687. 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 2022. 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 Social security tax Medicare tax Federal withholding tax State withholding tax $ 100,776 6,248 1,461 18,735 4,800 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 Expenses: Advertising Insurance Telephone Office rent Utilities Office supplies Depreciation $ 80,000 1,200 3,200 2,400 18,000 4,800 5,000 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, 2020. The equipment is being depreciated over seven-year MACRS 200% declining balance. Pat sold it on May 15, 2022, for $4,000. ⚫ Office equipment: Purchased a copier for $13,800 on January 10, 2022. 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, 2021. 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 $1,410. ⚫ Long-term loss carryover from 2019 of $5,000. • Real estate taxes of $8,459. • Home mortgage interest of $16,600. ⚫Charitable contributions in cash over the year of $2,500; all receipts and acknowledgments were received from the charitable organizations. Pat has made four quarterly installments of $250 each as estimated taxes for 2022. 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 2022. The Bebers do not donate to the presidential election campaign. Use the appropriate Tax Tables, Tax Rate Schedules and Depreciation Tables (6A-1, 6A-2, 6A-3, 6A-4 and 6A-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. TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 * May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-2 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 1st Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 58.33 35.00 25.00 19.50 8.75 6.563 2 27.78 26.00 21.43 16.50 9.13 7.000 3 12.35 15.60 15.31 13.20 8.21 6.482 4 1.54 11.01 10.93 10.56 7.39 5.996 5 11.01 8.75 8.45 6.65 5.546 6 1.38 8.74 6.76 5.99 5.130 7 8.75 6.55 5.90 4.746 8 1.09 6.55 5.91 4.459 9 6.56 5.90 4.459 10 6.55 5.91 4.459 11 0.82 5.90 4.459 12 5.91 4.460 13 5.90 4.459 14 5.91 4.460 15 5.90 4.459 16 0.74 4.460 17 4.459 18 4.460 19 4.459 20 4.460 21 0.557 * May not be used for farm business property generally placed in service after 1988. See Table 15, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-3 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 2nd Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 41.67 25.00 17.85 12.50 6.25 4.688 2 38.89 30.00 23.47 17.50 9.38 7.148 3 14.14 18.00 16.76 14.00 8.44 6.612 4 5.30 11.37 11.97 11.20 7.59 6.116 5 11.37 8.87 8.96 6.83 5.658 6 4.26 8.87 7.17 6.15 5.233 7 8.87 6.55 5.91 4.841 8 3.33 6.55 5.90 4.478 9 6.56 5.91 4.463 10 6.55 5.90 4.463 11 2.46 5.91 4.463 12 5.90 4.463 13 5.91 4.463 14 5.90 4.463 15 5.91 4.462 16 2.21 4.463 17 4.462 18 4.463 19 4.462 20 4.463 21 * May not be used for farm business property generally placed in service after 1988. See Table 16, Rev. Proc. 87-57, 1987-2 CB 687. 1.673 TABLE 6A-4 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 3rd Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 25.00 15.00 10.71 7.50 3.75 2.813 2 50.00 34.00 25.51 18.50 9.63 7.289 3 16.67 20.40 18.22 14.80 8.66 6.742 4 16.67 12.24 13.02 11.84 7.80 6.237 5 8.33 11.30 9.30 9.47 7.02 5.769 6 7.06 8.85 7.58 6.31 5.336 7 8.86 6.55 5.90 4.936 8 5.53 6.55 5.90 4.566 9 6.56 5.91 4.460 10 6.55 5.90 4.460 11 4.10 5.91 4.460 12 5.90 4.460 13 5.91 4.461 14 5.90 4.460 15 5.91 4.461 16 3.69 4.460 17 4.461 18 4.460 19 4.461 20 4.460 21 2.788 * May not be used for farm business property generally placed in service after 1988. See Table 17, Rev. Proc. 87-57, 1987-2 CB 687. TABLE 6A-5 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Mid-Quarter Convention (Property Placed in Service in 4th Quarter) Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 8.33 5.00 3.57 2.50 1.25 0.938 2 61.11 38.00 27.55 19.50 9.88 7.430 3 20.37 22.80 19.68 15.60 8.89 6.872 4 10.19 13.68 14.06 12.48 8.00 6.357 5 10.94 10.04 9.98 7.20 5.880 6 9.58 8.73 7.99 6.48 5.439 7 8.73 6.55 5.90 5.031 8 7.64 6.55 5.90 4.654 9 6.56 5.90 4.458 10 6.55 5.91 4.458 11 5.74 5.90 4.458 12 5.91 4.458 13 5.90 4.458 14 5.91 4.458 15 5.90 4.458 16 5.17 4.458 17 4.458 18 4.459 19 4.458 20 4.459 21 3.901 * May not be used for farm business property generally placed in service after 1988. See Table 18, Rev. Proc. 87-57, 1987-2 CB 687. 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 2022. 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 Social security tax Medicare tax Federal withholding tax State withholding tax $ 100,776 6,248 1,461 18,735 4,800 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 Expenses: Advertising Insurance Telephone Office rent Utilities Office supplies Depreciation $ 80,000 1,200 3,200 2,400 18,000 4,800 5,000 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, 2020. The equipment is being depreciated over seven-year MACRS 200% declining balance. Pat sold it on May 15, 2022, for $4,000. ⚫ Office equipment: Purchased a copier for $13,800 on January 10, 2022. 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, 2021. 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 $1,410. ⚫ Long-term loss carryover from 2019 of $5,000. • Real estate taxes of $8,459. • Home mortgage interest of $16,600. ⚫Charitable contributions in cash over the year of $2,500; all receipts and acknowledgments were received from the charitable organizations. Pat has made four quarterly installments of $250 each as estimated taxes for 2022. 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 2022. The Bebers do not donate to the presidential election campaign. Use the appropriate Tax Tables, Tax Rate Schedules and Depreciation Tables (6A-1, 6A-2, 6A-3, 6A-4 and 6A-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.

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Form 1040 for Pat and Jordan Beber for 2022 tax year Filing Status Married filing jointly Names as stated in the problem Pat Beber and Jordan Beber Address 12345 Hemenway Avenue Marlborough MA 01752 F... View the full answer