The following information is available for the Albert and Allison Gaytor family in addition to that provided

Question:

The following information is available for the Albert and Allison Gaytor family in addition to that provided in Chapters 1– 4. Albert and Allison received the following form: 

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Albert and Allison paid the following in 2018 (all by check or can otherwise be substantiated): 

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In August 2018, Crocker was on an out-of-town field trip with the university band and his appendix burst. He required immediate surgery which was considered “out of network” for the Gaytor’s health plan resulting in hospital and doctor’s fees of $3,000 not covered by insurance. In addition, Allison drove 300 miles round trip to be with Crocker after the surgery and drive him home after he recovered. She spent two nights in a hotel at a cost of $140 per night. In June, Albert purchased a new professional digital SLR camera for $7,950. While the Gaytors were on vacation in August, someone broke into their residence and stole the camera. Albert’s homeowners’ insurance did not reimburse him for any part of the loss since he declined the special premium add-on for high value items required by his policy. For the 2018 tax year, on April 15, 2019, Albert contributes $5,500 to a traditional IRA for himself and $5,500 to a traditional IRA for his wife. He is not covered by a qualified retirement plan at work. Albert managed to gather his gambling loss documentation and can substantiate gambling losses of $3,480 in 2018 (refer back to Chapter 2 for gambling winnings). 

Required: 

Combine this new information about the Gaytor family with the information from Chapters 1–4 and complete a revised 2018 tax return for Albert and Allison. Be sure to save your data input files since this case will be expanded with more tax information in later chapters. 

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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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