Assignment 1: 1040 Tax Return

Facts:

Sally Student
123 Maple Street, Cincinnati, Ohio 44000
Social Security No. 123-45-6789

Sally is a 30-year old single person.She is an accountant and also works a side weekend job in an art gallery. She is not claimed as a dependent by anyone else. For 20XX, she had the following

INCOME:
1.       W-2 from 1st employer
         Gross wages income: $13,164
         Federal Withholding: $921
2.       W-2 from 2d employer
         Gross wages: $50,000.00
         Federal withholding: $9,500.00
3.       Interest income from bank: $132.00
4       Interest from brokerage firm: $2,100.00
5.       Ordinary "qualified" dividends from large U.S. Corporation: $3,000.00

POSSIBLE DEDUCTIONS
1.       Mortgage interest paid: $6,700
2.       State and local income taxes paid: $1,400
3.       Charitable contributions to a 501( c)(3) charity: $1,800.00
4.       Casualty loss, her garage was destroyed by fire. Cost and fair market value were $9,000. Insurance only paid $3,000
5.       Property taxes on her home: $2,600

Assignment 2: 1040 Tax Return

The taxpayer is:

Sally Student
123 Maple Street, Cincinnati, Ohio 44000
Social Security No. 123-45-6789

Sally is a 30-year old single person. She is an accountant and also works a side weekend job in an art gallery. She is not claimed as a dependent by anyone else. For 20XX, she had the following

INCOME:

1.       W-2 from 1st employer
         Gross wages income: $13,164
         Federal Withholding: $921
2.       W-2 from 2d employer
         Gross wages: $50,000.00
         Federal withholding: $9,500.00
3.       Interest income from bank: $132.00
4       Interest from brokerage firm: $2,100.00
5.       Ordinary "qualified" dividends from large U.S. Corporation: $3,000.00
6.       She sold the following assets during last year:
         a. General Motors stock 1000 shares, bought 1/1/2010 for $10,000, sold July 1 for $16,000
         b. Sold Facebook 500 shares, bought for $8,000 on February 1 of last year, and sold for $6,000 on August 1st of last year
         c. Sold her car, bought July 13, 2013 at $25,000.00, sold on Craigslist October 1st of last year, for $9,000
         d. Sold her fishing boat, for which she paid $3,000 on July 1, 2013, for $4,000 on November 1st of last year

POSSIBLE DEDUCTIONS
1.       Mortgage interest paid: $6,700
2.       State and local income taxes paid: $1,400
3.       Charitable contributions to a 501( c)(3) charity: $1,800.00
4.       Casualty loss, her garage was destroyed by fire. Cost and fair market value were: $9,000. Insurance only paid: $3,000
5.       Property taxes on her home: $2,600

Assignment 3: Review the IRS teaching document

Bebe Jackson is a successful, 30-year old attorney, social security no. 255-10-0000. She has a law office on Smith Court, but also has an office in her home, which is a 4-bedroom colonial in Slidell, Louisiana. Her house is 2,400 square feet. One room, a den, 300 square feet, is used for the law office. Her total utility expenses, depreciation, including gas, electric, etc., and also property taxes, total $8,000/year. She is on the cash method.

For 20XX she had $150,000 gross income, and the following expenses, (apart from any allowable home office expenses, which would be added to the list below to the extent allowable):

·    Secretary: 25,000
·    Rent: 10,000
·    Supplies: 500
·    Postage: 200
·    Utilities: 1000 (for Smith Ct. office)
·    Court fees: 1,000
·    Insurance: 2,000
·    Auto expenses: (She drove her car 10,000 miles, 4,000 to and from court 2,000 to and from her home to work and back. The other 4,000 was "just driving around". The car cost $25,000, bought new last year.

Prepare a 1040 Schedule C for Bebe. Also a Schedule SE for her self-employment taxes

Assignment 1: 1040 Tax Return Facts: Sally Student 123 Mapl...