2B. John Fuji (age 37) moved from California to Washington in December 2009. He lives at 468...
Question:
2B. John Fuji (age 37) moved from California to Washington in December 2009. He lives at 468 Cameo Street, Yakima, WA 98901. John’s Social Security number is 571-78-
5974 and he is single. His earnings and income tax withholding for 2010 for his job as a manager at a Washington apple-processing plant are:
Earnings from the Granny Smith Apple Co. $52,500 Federal income tax withheld 8,450 State income tax withheld 0 John’s other income includes interest on a Certificate of Deposit at Braeburn National Bank of $1,285. Also, he paid $600 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
During the year, John paid the following amounts (all of which can be substantiated):
Home mortgage interest $8,350 Auto loan interest 1,575 Credit card interest 655 Property taxes on personal residence 2,700 State and local sales taxes 2,000 Unreimbursed hospital bills 5,200 Doctor bills 2,550 Other medical expenses 720 Income tax preparation fee 500 Job-hunting expenses 925 Cash charitable gift to the Jonagold Research Center 500 In July of this year, someone broke into John’s house and stole a coin collection.
The collection had a fair market value of $12,000 and a tax basis to John of $4,000.
The collection was uninsured.
Required: Complete John’s federal tax return for 2010. Use Form 1040, Schedule A, Schedule B, Form 4684, and Schedule M, on pages 5-53 through 5-58 to complete this tax return. Make realistic assumptions about any missing data.
Step by Step Answer:
Income Tax Fundamentals 2011
ISBN: 9780538469197
29th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller