Ray and Maria Gomez have been married for 3 years. They live at 1610 Quince Ave., McAllen,
Question:
Ray and Maria have interest income of $577 from a savings account at McAllen State Bank. In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2014, and their value is $10,700 on December 31, 2014. They have not made an election with respect to these bonds.
Ray has an ex-wife named Judy Gomez. Pursuant to their divorce decree, Ray pays her $400 per month in alimony. All payments were made on time in 2014. Judy's Social Security number is 566-74-8765.
During 2014, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills.
In June of 2014, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000.
Maria bought a Texas lottery ticket on impulse during 2014. Her ticket was lucky and she won $3,000. The winning amount was paid to Maria in November 2014, with no income tax withheld.
Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2014. Ray never uses the car for personal purposes.
Required:
Complete the Gomez's federal tax return for 2014. Use Form 1040 on Pages 2-49 and 2-50. Make realistic assumptions about any missing data.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill