ACCT 341 Project Group 13 Part 1 Items Bill and Mary Clients are married and wish to file jointly. Bill has been promoted to Vice President for Com-Pac, a local packagng manufacturer. Mary is a self-employed attorney. Requirements Prepare an income tax return (with appropriate schedules) for 2019, the following tax forms. You will have to submit the return to your manager for review. Use the following guidelines and information: The taxpayers do not wish to contribute to the Presidential Elections Campaign Fund. The taxpayers do not own any foreign bank accounts or other investments. The taxpayers have the necessary substantiation (e.g., records, receipts) to support all transactions reported in their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. 1. The Clients live at 426 East Oak, Toledo, OH 43617. They have two children. Sandy is a sophmore in College. Andrew is still in K-12 school. Sandy lives away in a college dorm most of the year. She is a full time student. 2. Relevant Social Security numbers are as follows: Name Birthday Social Security # Occupation Bill S. Clients (Dad) 7/22/1963 123-45-6767 Vice President Mary N. Clients (Mom) 3/13/1962 123-45-6787 Attorney Sandy J. Clients 8/2/1999 123-45-6788 Student Andrew W. Clients (Brother) 6/16/2008 123-45-6790 Student 3. Bill's W-2 is attached. (Please know that the IRS does not have a pdf with fields. That is why it looks weird.) 4. Interest, Dividend, Stock and Bond Transactions are reflected on the attached 1099s. 5. The 1099-G shows the refund of 2018 state income taxes paid. In 2018 the Clients had a total of $30,000 itemized deductions, including $9,600 in state and local taxes paid. You enter in 2018 information under Wroksheets -> Form 1040 State Refund Worksheet. I had to enter 9600 on line 1.b and 2.a. Then the 30K on line 4. Don't forget to check itemized up at the top. 6. Mary is a licensed attorney who works on a consulting basis. Mary collected $75,000 consulting fees during 2019. Mary does her work at the clients premises or in her office at home (see item 8 below). The federal business code is 541100. Her buisness expenses for 2019 are as follows: Supplies 5000 $ 5,750 Library materials 7000 $ 8,050 Expert Legal and professional Services 10000 $ 1 1,500 Professional License Fees 400 $ 460 Subscriptions to professional journals 350 $ 403 Dues to professional organizations 500 $ 575 Contract labor (1099s issued to others) 12000 $ 1 3,800 34000 7. On March 3rd, 2017 Mary purchased a new Ford SUV for use in her job. The SUV cost ---> $ 39,100 (including sales taxes), with no trade-in involved. The SUV was driven 12,000 miles in 2017, 18,000 miles in 2018, and 13,800 miles in 2019. Mary reports that the car was 12000 used 80% for business purposes for all years. The mileage for 2019 was evenly distributed throughout the year. Mary uses actual cost method, and for depreciation he uses the half-year convention. In addition, Mary did not claim any 179 deduction or bonus depreciation on the vehicle. The vehcile weighs over 6,000 lbs. Mary's expenses for the Ford SUV are as follows: Gasoline 3000 $ 3,450 Oil Changes 250 $ 288 Auto Insurance 2000 $ 2,300 Repairs 900 $ 1,035 AAA dues 160 $ 184 Registration 160 $ 184 Interest on car loan 500 $ - Parking 300 $ 345 240 8. When the Clients purchased their home on February 2, 2015, 276 square feet was set asside for Mary's office. As of January 1, 2019 the home has a basis of $240,000 (of which $40,000 is attributed to land) - the fair value of the house is in excess of this amount. Relevant information concerning the home office for 2019 is as follows: Total home square footage 2,400 Homeowner's Insurance 3200 $ 3,680 Repairs and Maintenance 2000 $ 2,300 Utilities 6800 $ 7,820 Home Phone 0 $ - 9. Bill and Mary own a second home which they rent to tenants. The property is used 0% for personal use. The house was originally Mary's grandmothers. She purchased the home in 1975 for 100,000 ($30,000 of which was for land). At the time of her death, March 1 2016, the house was appraised at $200,000 ($60,000 of which was for land). The address of the house is 35 Apple Street, Murphysboro, IL, 62966. There is no outstanding debt related to the property. Items for 2019 are below: Rental Income 13,200 $ 15,180 Cleaning 800 $ 920 Insurance 250 $ 288 Repairs 2500 $ 2,875 Supplies 600 $ 690 Property Taxes 3000 $ 3,450 Utilities 120 $ 138 Bill and Mary are both occupied with their primary jobs; however they do perform all management functions towards the rental house. They own 100% of the house. 10. Besides the items previously noted, the Clients had the following items for 2019: Loan repayment received from a friend Sarah Smith $3,500 Loan was originally for $5,000 with no interst but Sarah was forgiven the remainder. Cash gifts from Mary's parents $14,000 Medical Insurance (paid with after-tax dollars) 3600 $4,140 Medical expenses not covered by insurance 4200 $ 4,830 Real estate taxes on home 6700 $ 7,705 Real estate taxes on invesment acres in Texas 3000 $ 3,450 State and local sales taxes $0 Interest on home mortgage see 1098 Contribution to church (all cash) 2000 $ 2,300 Goodwill (Carbondale branch) $600 Non-cash items donated to Goodwill were originally purchased on November 15th 2018. The $600 is the fair-value of items today. They were originally purchased for $3,000. The description of items is "clothing and household items." Also this related to the 50% charity limit and method used to determine is "thrift shop value." The address of the goodwill location is 2600 W Sylvania Ave STE 107, Toledo, OH, 43613. The donation was 8/15. 11. Included in source documents is Sandy's 1098-T listing her qualified education expenses. Last year, the Clients took the American Opportunity Credit and would like to take it again. This is Sandy's second year in her bachelor's degree. 12. The Clients have made total quarterly federal income tax payments of $1,000 and state income tax payment of $300 each quarter. The payments were made on the due dates and the fourth quarter payment was paid one month early on 12/15. The estimated payments input screen can be found through Schedule A. Click on the appropriate folder icon.

I need help with questions 7-12 only (The total amount paid for the year was $4,000 federal and $1,200 state)