Evaluate these tax return problems with the support of tax forms, the tax assignment prompt will be
Question:
Evaluate these tax return problems with the support of tax forms, the tax assignment prompt will be shown below:
You have been assigned to review the tax return.. Please casually review the return for accuracy and completness and respond to the following:
Line 32 of Form 4797 is $16,998--$8,998 is 25% gain and $8,000 is 15% gain. Can you trace these amounts to Schedule D and Form 1040?
Line 31 of Form 4797 is $2,500. Can you trace this amount to Form 1040 and see that it is ordinary income (Section 1245)?
Line 2 of Form 4797 is $34,000 is 15% gain. Can you trace this amount to Schedule D and Form 1040?
Does the QBI deduction appear to be correct? This assumes that considering facts and circumstances that the rental activiies qualify as a trade or business.
The completion of this tax return involves receiving the records from the client, a client interview virtually or in person, the return preparation using computer software. your review, and delivery of the return with an exit interview in person or virtually. What sort of fee (i.e., how much?) do you think would be appropriate for this valuable service?
Here are the documents required for this assignment:
form 4797:
Schedule D:
Form 1040:
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston