Tax Return Project Instructions: This is the final tax return project that will result in the completed tax return for Monkey and Nami Luffy. Unlike the previous parts, you will complete the Luffys 2022 tax return using the information below. Turn in Form 1040, all relevant forms from this assignment, and any other form that changed from previous problems (IRA worksheet, 8949, schedule D, schedule E, 8582). Based on the information provided below, create the following source documents: a) two 1098-Ts received by Monkey and Sanji, b) the Fidelity 1099-B for the wash sale, and create the c) Form W-2G for Monkeys gambling winnings. Complete the Luffys Form 1040, Schedules 1, 2, and 3 as well as the following forms (recommended order): 1) Form 8949 (Wash Sale), 2) Schedule D (Wash Sale & indicate which tax worksheet on pg. 2 will be used to calculate tax), 3) Schedule E (Limited Partnerships), 4) Form 8582 (Limited Partnerships), 5) Form 4797 (Section 1244 Stock), 6) IRA Deduction worksheet (Stop to check AGI before moving on) 7) Schedule A (Itemized deductions), 8) IRS Sales Tax Calculator (https://apps.irs.gov/app/stdc/ - Sch. A) 9) Form 4952 (Investment interest limit Sch. A), 10) Form 8283 (Non-cash charitable contributions Sch .A), 11) Form 8995 (QBI Deduction Stop to check TI) Only current year activity is considered for the LP Income (Loss) Amounts (K-1 Box 20) 12) Appropriate tax calculation worksheet specified on Sch. D for Monkey and Nami Luffy. 13) Form 8606 (Non-deductible IRA contribution), 14) Earned Income Worksheet & Credit Limit Worksheet A (both in 8812 instructions), for Form 8812, 15) Form 8812 (Split Child Tax Credit refundable / non-refundable), 16) Form 8863 (Education Credits need a Pg. 2 for each student) 17) Credit limit worksheet (8863 instructions), for 8863 18) Capital loss carryover worksheet (Sch. D Instructions Add back QBI for Line 1) For any calculations not made on the tax forms, please provide your calculations on a separate page. No calculations = no credit. Limited Partnership Interest Nami inherited two limited partnerships when her grandfather passed away on October 10, 2010. The first, Shea Homes Limited Partnership. (655 Brea Canyon Road, Walnut, CA, 91789; EIN: 95-4240219), is one of the largest privately owned homebuilders. The K-1 she received indicated that her share of the ordinary income is $1,770. Her suspended loss in the partnership is $700. The second limited partnership, Liberty Property Limited Partnership. (500 Chesterfield Parkway, Malvern, PA, 19355; EIN: 23-2766549), provides leasing, property management, development, and other tenant related services. Her ordinary loss for the year is $2,200. Nami's suspended loss in Liberty is $900. The investments are at risk and the current year activity is reported as ordinary income (loss) on box 1 of the K-1 as well as in Box 20 for the QBI deduction. (Do not prepare K-1s). Section 1244 Business Loss On December 10, 2016, Monkey invested $3,500 in his brother's friends corporation Zing Air, which manufactures a toy for children. The corporation qualified as a small business corporation and went out of business on December 29, 2022. (This is a section 1244 stock loss see Form 4797 Part II Instructions) 2022 Wash Sale On September 22, 2021, Nami acquired 110 shares of Activision Blizzard, Inc. for $8,800. On August 10, 2022 they sell 90 shares for $810 (after commission). On September 5, 2022 Monkey is watching Mad Money and based on Cramer's advice, he buys 40 shares of Activision Blizzard, Inc. for $24 a share. The sale is reported on Namis Fidelity 1099-B with basis reported to the IRS and an adjustment for the repurchase causing a wash sale. Education information Monkey enrolled in web design courses to improve his web maintenance skills at The Reno Academy (EIN: 26-0642925, 1600 Holcomb Ave, Reno, NV 89502). He is not eligible for the AOTC credit but would like to take the LLTC. The tuition was $5,250. The software and textbook for the course cost was $450. The Reno Academy sent Monkey a 1098-T for the amount billed for tuition. Box 7 was not checked. Recall from Tax Return Project 1 that Monkey and Nami are married and have two children, Nico Robin (15 years old) and Sanji (23 years old). Monkey and Nami provide more than half of Sanjis support and he lives with them when not at college. Sanji is a full time 4th year senior at Carrington College - Reno (EIN: 82-0381820 5580 Keitzke Ln, Reno, NV 89511) and he received a 1098-T from the university for 2022. The total for his tuition was $5,984 and Sanji received a scholarship of $1,500. Box 7 was not checked. Monkey and Nami pay the following education expenses on behalf of Sanji: Tuition and Fees Paid $ 4,484 Textbooks $ 981 Room and Board $ 7,951 Refund Monkey and Nami want any refund received to be applied to their 2022 taxes. Gambling winnings and losses Monkeys gambling winnings for the year was $2,275 from a slot machine on a $20 wager on 11/04/2022 while their losses for the year totaled $3,750. They received a W-2 G from Monarch Casino & Resort, Inc showing no tax was withheld. Itemized Deductions In addition they provide you with the following expenses: Nami suits for work at Ormat Technologies, Inc. $ 900 Monkey Self-employed health insurance premiums $ 7,500 Tax return preparation $ 260 Safe-deposit box $ 75 Nami parking at work $ 325 Attorney fee for tax advice on IRS dispute $ 1,250 Dues to professional organizations $ 650 Subscriptions to investment journals $ 225 Investment advice $ 275 Goodwill contribution (clothes) - 12/30/22 Contributed FMV $ 400 Goodwill: 1620 Robb Dr., Reno, NV 89523 Cost - Various $ 2,560 Local Chamber of Commerce dues $ 80 Alpha Chi Omega sorority (uses towards landscaping) $ 100 United way (cash) - 12/30/22 contributed $ 6,250 Mortgage interest (primary residence) $ 11,660 Real estate taxes (primary residence) $ 5,413 Mortgage interest (vacation - unallocated) $ 31,504 Real estate taxes (vacation - unallocated) $ 12,650 Mortgage insurance premiums (vacation - unallocated) $ 2,575 Interest on funds used for taxable investments $ 850 Personal property taxes (ad valorem for auto tags) $ 650 State sales tax on new home $ 5,200 Over the counter drugs $ 350 Prescription drugs $ 1,401 Dentists $ 1,506 Chiropractor $ 274 Doctor $ 1,541 Surgeon $ 1,564 Hospital fees $ 894 Health club dues $ 1,497 Country club dues $ 651 Health insurance premiums for kids $ 3,750 Disability insurance premiums $ 900 Life insurance premiums $ 600 Homeowner's insurance premiums $ 1,250 Automobile insurance premiums $ 1,690 Unreimbursed employee expenses - Nami Airfare $ 750 Lodging $ 800 Meals $ 275 Entertainment $ 150 Incidentals $ 90 Health savings account reimbursements $ 4,750 Hamilton Stock gift to UNR - 12/29/22 contributed Cost 1/5/2005 $ 1,800 UNR: 1664 N Virginia St, Reno, NV 89557 FMV $ 4,350 Points paid on home purchase 01/01/2022 $ 7,000