ACCTMIS 3400 TAX FORM PROJECT Client Facts: Nick M. Viall and Rachel A. Lindsay, husband and wife, file a joint return. They live at 113 Bachelor Way, Columbus, OH, 43204. Nick's Social Security number is 234-56-7809, and Rachel's is 987-56-4321. Nick was born on November 12, 1956, and Rachel was born on September 25, 1962. Nick and Rachel file a joint tax return. Nick retired from ABC Medical, and Rachel works part-time as an accountant. Nick and Rachel had the following gross income for 2018 Rachel carned a salary of $40,000 working part-time as a tax-accountant during busy season. Interest income of $22,000 from various corporate bond investments. Interest income of $10,000 from bonds issued by the city of Columbus. Other information that affects their tax return for the year is as follows Rachel had $6,000 Federal tax withheld from her paycheck during the year and $2,500 in state income taxes withheld The couple had other expenses that were all paid in 2018, which they told you may qualify as itemized deductions >Property taxes on their home $7,750 > Mortgage interest $18,000 (acquisition indebtedness; balance of $450,000 at the end of the year) >Charitable contribution (cash) -$3,000 (to Trump Foundation, a qualified organization) They will deduct state income taxes paid during the year, rather than sales taxes paid during the year. In 2018, Nick started provided medical consulting services as a sole proprietor and had the following income and expenses from his consulting business: Consulting fees received - $55,000 >Liability insurance premiums paid - $1,000 >Office supplies - $400 Meals with clients (all reasonable in amount) - $1,500 He will use the cash method of accounting for tax purposes. Nick drove his personal automobile to/from meeting clients, for a total of 2,000 miles in 2018. He used the same vehicle for personal purposes, but did not drive his wife's car at all. Nick verified that he has kept thorough written records to support the deduction for his business transportation. (Note that you will have to look up the mileage rate for 2018.) Nick made an investment in an ultrasound machine, which he will use placed this in service on September 29, 2018, and paid $30,000. The cquipment has a 5-ycar class life. He does not want to expense any of the cost under Scction 179 or take bonus depreciation on the machine, but will use MACRS to calculate his depreciation deduction in 2018 his consulting business. He CS Scanned with CamScanner Nick took a business trip to a client's office during the ycar. He had no personal days on this trip. The expenses of the trip were: Airfare $425 Lodging $1,200 Parking at the airport S65 Taxi from the airport to the hotel - $30 Meals while traveling - $410 Based on the advice of a friend, Nick made quarterly estimated tax payments (Federal tax) in anticipation of the tax he would owe on his consulting income in 2018, totaling $20,000. The couple had the following transactions involving their investment assets during 2018: Sold 500 shares of Urban Enterprises on 2/14/2018 for $185,000. (Stock was inherited from Nick's father, who died on November 28, 2017. The FMV of the stock on that date was $172,000; Nick's father had purchased the stock for $100,000.) Sold 100 shares of Harbaugh Inc. stock on 5/1/2018 for $25,000. (Stock was purchased on 1/2/2017 for $32,500.) >Sold 300 shares of Buckeye Corp. stock on 11/1/2018 for $100,000. (Stock was purchased on 11/1/2017 for $112,000). All of these transactions were reported to them on form 1099-B from their investment company, and the basis was reported to the IRS for all of these transactions. Assignment Instructions: Individually or with a partner, prepare the following for 2018: Form 1040; Schedules 1, 4, and 5; Schedules A, B, C, D, and SE; and Form 4562 (page 1 only), for Nick Viall and Rachel Lindsay. Please include a cover sheet that includes name of you (and your partner, if applicable). If working with a partner you should only submit one copy of the assignment The assignment is due NO LATER than the start of class on Wednesday, June 26th. No late submissions will be accepted CS Scanned with CamScanner ACCTMIS 3400 TAX FORM PROJECT Client Facts: Nick M. Viall and Rachel A. Lindsay, husband and wife, file a joint return. They live at 113 Bachelor Way, Columbus, OH, 43204. Nick's Social Security number is 234-56-7809, and Rachel's is 987-56-4321. Nick was born on November 12, 1956, and Rachel was born on September 25, 1962. Nick and Rachel file a joint tax return. Nick retired from ABC Medical, and Rachel works part-time as an accountant. Nick and Rachel had the following gross income for 2018 Rachel carned a salary of $40,000 working part-time as a tax-accountant during busy season. Interest income of $22,000 from various corporate bond investments. Interest income of $10,000 from bonds issued by the city of Columbus. Other information that affects their tax return for the year is as follows Rachel had $6,000 Federal tax withheld from her paycheck during the year and $2,500 in state income taxes withheld The couple had other expenses that were all paid in 2018, which they told you may qualify as itemized deductions >Property taxes on their home $7,750 > Mortgage interest $18,000 (acquisition indebtedness; balance of $450,000 at the end of the year) >Charitable contribution (cash) -$3,000 (to Trump Foundation, a qualified organization) They will deduct state income taxes paid during the year, rather than sales taxes paid during the year. In 2018, Nick started provided medical consulting services as a sole proprietor and had the following income and expenses from his consulting business: Consulting fees received - $55,000 >Liability insurance premiums paid - $1,000 >Office supplies - $400 Meals with clients (all reasonable in amount) - $1,500 He will use the cash method of accounting for tax purposes. Nick drove his personal automobile to/from meeting clients, for a total of 2,000 miles in 2018. He used the same vehicle for personal purposes, but did not drive his wife's car at all. Nick verified that he has kept thorough written records to support the deduction for his business transportation. (Note that you will have to look up the mileage rate for 2018.) Nick made an investment in an ultrasound machine, which he will use placed this in service on September 29, 2018, and paid $30,000. The cquipment has a 5-ycar class life. He does not want to expense any of the cost under Scction 179 or take bonus depreciation on the machine, but will use MACRS to calculate his depreciation deduction in 2018 his consulting business. He CS Scanned with CamScanner Nick took a business trip to a client's office during the ycar. He had no personal days on this trip. The expenses of the trip were: Airfare $425 Lodging $1,200 Parking at the airport S65 Taxi from the airport to the hotel - $30 Meals while traveling - $410 Based on the advice of a friend, Nick made quarterly estimated tax payments (Federal tax) in anticipation of the tax he would owe on his consulting income in 2018, totaling $20,000. The couple had the following transactions involving their investment assets during 2018: Sold 500 shares of Urban Enterprises on 2/14/2018 for $185,000. (Stock was inherited from Nick's father, who died on November 28, 2017. The FMV of the stock on that date was $172,000; Nick's father had purchased the stock for $100,000.) Sold 100 shares of Harbaugh Inc. stock on 5/1/2018 for $25,000. (Stock was purchased on 1/2/2017 for $32,500.) >Sold 300 shares of Buckeye Corp. stock on 11/1/2018 for $100,000. (Stock was purchased on 11/1/2017 for $112,000). All of these transactions were reported to them on form 1099-B from their investment company, and the basis was reported to the IRS for all of these transactions. Assignment Instructions: Individually or with a partner, prepare the following for 2018: Form 1040; Schedules 1, 4, and 5; Schedules A, B, C, D, and SE; and Form 4562 (page 1 only), for Nick Viall and Rachel Lindsay. Please include a cover sheet that includes name of you (and your partner, if applicable). If working with a partner you should only submit one copy of the assignment The assignment is due NO LATER than the start of class on Wednesday, June 26th. No late submissions will be accepted CS Scanned with CamScanner