This is all the information I have for this problem. A Form 1040, Schedule 1, Schedule 2, Schedule 3, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE and Forms 2441, 4562, 8995, and 8949 are required of me to be filled out based on this information. I need help filling out the Schedule D and Form 8949.

John and Phyllis Northway are married and file a joint return. John was born on 3/17/1970 and Phyllis was born on 6/19/1974. John owns a used bookstore (self-employed, Sch. C), and Phyllis is a college professor. John's Social Security number is 354-69-5726, and Phyllis's is 384-39-2985. The Northways live at 1258 Dickinson Rd, Grand Rapids, MI 49507. Their phone number is 616- 584-5621. The Northways each designate that $3 is to go to the Presidential Election Campaign Fund. John has one daughter, Katie (SS# 307-50-4861; BD 08/04/1997), from a previous marriage. Katie is age 23 and a full-time law student at Wayne State University. She worked part-time during the year earning $3,890, which she spent for her own support. In addition, she received a $5,200 scholarship from Michigan State University. Katie lived at home while not in school and John and Phyllis provided an additional $6,800 toward Katie's support. They also provided over half the support of Phyllis' son, Joshua (SS# 306-15-8012, BD 05/20/1999), from a previous marriage. Joshua is age 19 and a full-time student at Davenport University. Joshua worked part-time during the year, earning $2,900. He filed a joint return with his spouse, Kim, who earned $15,400 during the year. John and Phyllis also have twins, Faye (SS 386-54-2189; bd 02/08/2008) and Ray (SS 386-54-2190; bd 02/08/2008), age ten, who live with them. John's mother, Beverly, (SS# 101-52-1317), was born on 8/26/1932. Beverly is blind and lives with the Northways. The Northways pay $5,400 per year for dependent care expenses for Beverly as they are both employed. The dependent care provider is Senior Care, 1215 Magna Carta, Grand Rapids, MI, 49503 (EIN# 38-6451321). In addition, John and his brother Mike each ACCT 315-FALL 20 Page 1 of 8CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP 1a Total ordinary dividends OMB No. 1545-0110 or foreign postal code, and telephone no. $ 1,836 2019 Dividends and 1b Qualified dividends Distributions $ 1,836 Form 1099-DIV ACME CLOTHING ONE HILFIGER AVE 2a Total capital gain distr 2b Unrecap. Sec. 1250 gain Copy B NEW YORK, NY 10009 $ $ PAYER'S TIN RECIPIENT'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain For Recipient 38-3335579 XXX-XX-2985 $ $ RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld This is important tax PHYLLIS NORTHWAY information and is Section 199A dividends Investment expenses being furnished to Street address (including apt. no.) the IRS. If you are required to file a 7 Foreign tax paid Foreign country or U.S. possession return, a negligence penalty or other 1258 DICKINSON RD sanction may be City or town, state or province, country, and ZIP or foreign postal code $ imposed on you if Cash liquidation distributions 10 Noncash liquidation distributions this income is taxable and the IRS GRAND RAPIDS, MI 49507 $ determines that it has FATCA filing 11 Exempt-interest dividends 12 Specified private activity not been reported. requirement bond interest dividends $ $ Account number (see instructions) 13 State 14 State identification no. 15 State tax withheld Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue ServiceCORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP 1a Total ordinary dividends OMB No. 1545-0110 or foreign postal code, and telephone no. $ 548 2019 Dividends and 1b Qualified dividends Distributions MAPLE LEAF BREWING 664 GRETZKY ST $ TORONTO, ONTARIO, CA M4C3X5 548 Form 1099-DIV 2a Total capital gain distr 2b Unrecap. Sec. 1250 gain $ $ Copy B PAYER'S TIN RECIPIENT'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain For Recipient 38-5891624 XXX-XX-5726 $ $ RECIPIENT'S name 3 Nondividend distributions Federal income tax withheld This is important tax JOHN AND PHYLLIS NORTHWAY information and is 5 Section 199A dividends 6 Investment expenses being furnished to Street address (including apt. no.) the IRS. If you are required to file a 7 Foreign tax paid 8 Foreign country or U.S. possession return, a negligence 1258 DICKINSON RD penalty or other sanction may be City or town, state or province, country, and ZIP or foreign postal code $ imposed on you if Cash liquidation distributions | 10 Noncash liquidation distributions this income is taxable and the IRS GRAND RAPIDS, MI 49507 $ determines that it has FATCA filing 11 Exempt-interest dividends 12 Specified private activity not been reported. requirement bond interest dividends 0 $ $ Account number (see instructions) 13 State 14 State identification no. 15 State tax withheld Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue ServiceVOID CORRECTED PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 OMB NO. 1545-0715 or foreign postal code, and telephone no. Proceeds From BOX D 2019 Broker and Barter Exchange Transactions CAPP CORPORATION Form 1099-B 15 STARBUCKS DR 1a Description of property (Example: 100 sh. XYZ Co.) SEATTLE, WA 98113 1,000 SHARES OF CAPPC 1b Date acquired 1c Date sold or disposed 06/25/2002 09/03/2019 PAYER'S TIN RECIPIENT'S TIN 1d Proceeds 1e Cost or other basis Copy 1 $ 51,000 $ 11,500 For State Tax if Accrued market discount 1g Wash sale loss disallowed Department 38-1256247 XXX-XX-5726 $ $ RECIPIENT'S name 2 Short-term gain or loss 3 If checked, proceeds from: JOHN AND PHYLLIS NORTHWAY Long-term gain or loss Collectibles Ordinary QOF Street address (including apt. no.) 4 Federal income tax withheld 5 If checked, noncovered $ security 1258 DICKINSON RD 6 Reported to IRS: 7 If checked, loss is not allowed City or town, state or province, country, and ZIP or foreign postal code Gross proceeds based on amount in 1d Net proceeds GRAND RAPIDS, MI 49507 8 Profit or (loss) realized in 9 Unrealized profit or (loss) on Account number (see instructions) 2019 on closed contracts open contracts- 12/31/2018 $ CUSIP number FATCA filing 10 Unrealized profit or (loss) on 11 Aggregate profit or (loss) requirement open contracts-12/31/2019 on contracts 14 State name 15 State identification no. 16 State tax withheld $ $ 12 If checked, basis reported to IRS 13 Bartering $ Form 1099-B www.irs.gov/Form1099B Department of the Treasury - Internal Revenue Serviceincurred out-ofpocket costs of $3,950 for Beverly's support. Also, John provided lodging for Beverly during the entire year. John estimates the fair rental value of the lodging is $6,000. Beverly received $10,700 in Social Security Benefits and $650 of interest during the year, all of which she put in the bank. Mike is willing to do whatever is necessary to enable John to claim Beverly as a dependent. Phyllis is a professor at Kalamazoo Community College (#38-7854123; 6767 W 0 Ave, Kalamazoo, MI 49003), where she earned $ 92,800. The University withheld Federal income tax of $9,280, state income tax of $4,697, Grand Rapids city income tax of $1,347, and the correct amount of FICA. Her employer pays for health care for the entire family. Phyllis has a 401K plan at work. The Northways received $2,450 of interest from Second Bank on a joint account. They received interest of $1,650 on City of Seattle bonds they bought in January. John received a dividend of $1,345 on General Bicycle Corporation stock he owns. Phyllis received a dividend of $1,836 on Acme Clothing Corporation stock she owns. General Bicycle and Acme Clothing are both domestic Corporations. John and Phyllis received a dividend of$ 548 on jointly owned stock in Maple Leaf Brewing Company, a Canadian corporation. All of the securities were held with a Grand Rapids brokerage firm and are \"qualified dividends\". John's business, John's Bargain Books, is located at 1645 Library Ave., Grand Rapids, MI. 49503, and his employer identification number is #38-6478224. John's sales for the year were $342,465. He uses the cash method of accounting for tax purposes and his business expenses on the cash basis are as follows: Advertising .................................... $ 6,000 Bank service charges........................... 140 Professional dues .............................. 800 Professional journals .......................... 290 Contributions to employee benefit plans ..... 8,100 Insurance on office contents ................... 2,300 Accounting services ............................ 4,940 Miscellaneous office expense ................... 924 Store (26K) and equipment (10k) rental ...... 36,000 Utilities ................................................. 2,964 Telephone ............................................ 843 Wages ........................................... 69,926 Payroll taxes .................................. 3,678 Returns and Allowances .............. 1,900 Purchases ............................... 58,600 Beginning Inventory................... 61,800 Ending Inventory ........................ 14,600 John put 8,550 business miles on his Ford Explorer this year and 15,650 personal miles (total miles= 24,230). He uses the automatic mileage method. John purchased the truck July 11, 2015 and did not take any Sec 179 Immediate Expensing. He does keep written records of his mileage. ACCT 315-FALL 20 Page 2 of8 June 16, 2019 John purchased a new business computer information system to track inventory and customers, etc., the cost was $21,200. On the same date he spent $27,625 for furniture to refurbish his office. He did elect Sec.179 Immediate Expensing, for these items. Phyllis's mother, Susan, died on Feb 17, 2006, leaving Phyllis her entire estate. Included in the estate was Susan's residence at 538 Lighthouse Ln., Holland, MI 49424. Susan's basis in the residence was $45,000. Fair market value of the residence on Feb 17, 2006 was $128,000 (this is Phyllis's basis). Phyllis began renting the house January 1, 2007. In 2019 the house was rented the entire year at $1,950 a month. The house is depreciated using the MACRS straight-line method for residential real estate with zero salvage value. In computing depreciation, they allocate a value of $33,000 to the lot on which the house is located. They incurred the following expenses during the year on the rental property: Property insurance ..................... $1,600 Property taxes .............................. 7,200 Maintenance and repairs ............. 2,800 Management fees ......................... 1,800 The Northways sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2002. The stock was worth $62 per share in January. Bv September 3, Its value had The Northways sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2002. The stock was worth $62 per share in January. By September 3, its value had dropped to $51 per share, and the Northways sold the stock on that date. John's father had given them the stock. He had paid $11.50 per share for it in 1974. Its value at the date of gift was $20.50 per share. No gift tax was paid on the gift. (The Northway's basis would be $11.50 per share.) On December 30, 2019 as John was leaving the grocery store, John found a Michigan lottery ticket someone had apparently dropped. On January 3, 2020 when the lottery held its weekly drawing, John discovered he had won $125,000, which he received on January 8. Phyllis is required by her employer to visit several high schools in the Battle Creek- Lansing area to evaluate KCC students who are doing their medical rotations. She also spent $680 on meals taking out the students afterwards to discuss how the rotations were progressing. She is not reimbursed by KCC for the expenses she incurs in doing this. During the year, she drove her personal automobile 8,300 miles in fulfilling this obligation. Phyllis purchased her car April 12, 2015, and put a total of 18,786 miles on it in 2019. Her average daily commuting miles is 24 and her annual commuting miles are 2160. All other miles driven were personal. Phyllis did not keep detailed records of her gas and oil purchases and had no major repairs on the car this year. She does journal her business mileage. Since Phyllis must travel out of town, the Northways take their twins, Faye and Ray to daycare. Their daycare provider is Betty Bop Babies at 324 Sybil St, Grand Rapids, MI 49508. The EIN number is #382546888. The Northways received a receipt for $16,580 in daycare costs for 2019. The cost is evenly divided for the care for the twins. John contributed 59,500 to Self-Employed SEP Plan on December 30. Phyllis is covered by a KCC retirement plan. ACCT Bis-FALL 20 Page 3 of 8 John and Phyllis have given you a file containing the following receipts for out-of-pocket expenditures during the year: Medicines and drugs .................... $1,286 Doctors and hospital ................... 7,888 Penalty for underpayment of last year's state income tax ....................... 749 Real estate taxes on personal residence 8,962 Michigan vehicle registration fees 456 State sales tax on new car ....... 1,512 State sales tax on new sailboat ........ 941 Interest on Home mortgage (paid to Home Bank) ........................... 11,650 Interest on credit card debt ............... 4,535 Cash contributions to Hope Church ..... 13,600 Payroll deductions for Phyllis's contribution to the United Way .................... 1,200 Professional dues (Phyllis) .............. 475 Professional subscriptions (Phyllis) ..... 325 Fee for preparation of last year's 1040 850 On the 15"h ofJanuary, April, June and September, 2019 the Northways made quarterly estimated Federal income tax payments of 5 2,500 (10,000 total payments). They made estimated payments for state income tax of $2,200 for the year. All Michigan estimated payments were made in 2019. 22222 a Employee's social security number XXX XX 2985 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 38 7854123 $90, 100.00 $9,280.00 c Employer's name, address, and ZIP code 3 Social security wages 4 Social security tax withheld KALAMAZOO COMMUNITY COLLEGE $92,800.00 $5,753.60 6767 WEST O AVE 6174589534 5 Medicare wages and tips 6 Medicare tax withheld $92,800.00 $1,345.60 KALAMAZOO MI 49003 United States 7 Social security tips 8 Allocated tips # # d Control number 10 Dependent care benefits # e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a PHYLLIS NORTHWAY $2,700.00 1258 DICKINSON RD 6165485562 13 Statutory Retirement Third-party employee plan sick pay 12b X : DD $15,275.00 14 Other 12c GRAND RAPIDS MI 49507 United States # 12d een # f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name MI 38-7854123 $90, 100.00 $4,697.00 $90,100.00 $1,347.00 GR # # Wage and Tax Department of the Treasury-Internal Revenue Service Form W-2 Statement 2019 Copy 1-For State, City, or Local Tax DepartmentVOID CORRECTED PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) OMB No. 1545-0112 or foreign postal code, and telephone no. 2019 Interest 1 Interest income Income CITY OF SEATTLE MUNICIPAL BONDS 1234 SLEEPLESS LN $ Form 1099-INT SEATTLE, WA 98102 2 Early withdrawal penalty Copy 1 PAYER'S TIN RECIPIENT'S TIN $ 3 Interest on U.S. Savings Bonds and Treas. obligations For State Tax Department 38-9541267 XXX-XX-5726 $ RECIPIENT'S name 4 Federal income tax withheld| 5 Investment expenses JOHN AND PHYLLIS NORTHWAY $ S 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) $ 8 Tax-exempt interest 9 Specified private activity bond 1258 DICKINSON RD interest City or town, state or province, country, and ZIP or foreign postal code $ 1,650 $ 10 Market discount 11 Bond premium GRAND RAPIDS, MI 49507 FATCA filling $ $ requirement 12 Bond premium on Treasury obligations | 13 Bond premium on tax-exempt bond $ $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. Form 1099-INT www.irs.gov/Form1099INT Department of the Treasury - Internal Revenue ServiceVOID CORRECTED PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) OMB NO. 1545-0112 or foreign postal code, and telephone no. Interest 1 Interest income 2019 Income SECOND BANK 1835 BREWERS LN WAUWAUTOSA, WI 53226 $ 2,450 Form 1099-INT 2 Early withdrawal penalty Copy 1 PAYER'S TIN RECIPIENT'S TIN $ 3 Interest on U.S. Savings Bonds and Treas. obligations For State Tax Department 38-95412671 XXX-XX-5726 $ RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses JOHN AND PHYLLIS NORTHWAY $ $ 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) $ 8 Tax-exempt interest 9 Specified private activity bond 1258 DICKINSON RD interest City or town, state or province, country, and ZIP or foreign postal code $ $ 10 Market discount 11 Bond premium GRAND RAPIDS, MI 49507 FATCA filing $ $ requirement 12 Bond premium on Treasury obligations 13 Bond premium on tax-exempt bond 0 $ S Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. Form 1099-INT www.irs.gov/Form1099INT Department of the Treasury - Internal Revenue ServiceCORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP | 1a Total ordinary dividends OMB No. 1545-0110 or foreign postal code, and telephone no. $ 1,345 2019 Dividends and 1b Qualified dividends Distributions $ GENERAL BICYCLE CORP 1,345 Form 1099-DIV 333 WRIGHT BROTHERS AVE 2a Total capital gain distr 2b Unrecap. Sec. 1250 gain $ $ Copy B DAYTON, OH 45415 PAYER'S TIN RECIPIENT'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain For Recipient 38-1496752 XXX-XX-5726 $ $ RECIPIENT'S name Nondividend distributions Federal income tax withheld This is important tax JOHN NORTHWAY information and is Section 199A dividends Investment expenses being furnished to Street address (including apt. no.) the IRS. If you are required to file a 7 Foreign tax paid 8 Foreign country or U.S. possession return, a negligence 1258 DICKINSON RD penalty or other sanction may be City or town, state or province, country, and ZIP or foreign postal code $ imposed on you if Cash liquidation distributions | 10 Noncash liquidation distributions this income is taxable and the IRS GRAND RAPIDS, MI 49507 determines that it has FATCA filing 11 Exempt-interest dividends | 12 Specified private activity not been reported. requirement bond interest dividends 0 $ $ Account number (see instructions) 13 State 14 State identification no. 15 State tax withheld Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service