Acet 311 Dr. Brett Bucltel Tax Return Assignment You are a new staff accountant at Sweet Liberty Tax Services. Your boss, Betsy Kettleman, has given you the task of preparing a 1040 tax return for Saul Goodman and Kim Wexler for the tax year 2022 Saul Goodman and his wife, Kim Wexler, are married with no children. Saul, age 33, is a selfemployed attorney at Saul Goodman \& Associates. His wife, Kim Wexler, age 30, is an attomey for a regional bank, Mesa Verde. Saul's social security tumber is 222-00-2222. Kim's social security number is 111-00-1111. Their address is 12345 Slipein Jimmy Road. Albuquerque, NM 87101. Saul and Kim provide over half the support of Saul's brother, Charles "Chuck" MeGill, age 43. who suffers from an allergy to electricity (not considered a disability for tax purposes). Chuck lives in his own residence by himself and eams no gross income during the year. His social security number is 333003333. Saul and Kim report all of their income and expenses using the cash method. For 2022, they report the following items of income and expense: Kim's salary from Mesa Verde Gross receipts from Saul's law firm Wages for Saul's bodyguard, Heel Babinexux (Huel protects Saul from rowdy clients at his law firm) Wages for Saul's paralegal, Francesca Liddy Saul's legal malpractice insurance for his law firm Saul's New Mexico law license annual fees Office expenses for Saul's law firm Advertising expenses for Saul's law firm (including late night commercials, billboards, park benches, and matehes) Rent on Saul's office building Repairs and Maintenance for Saul's law firm Utilities expense for Saul's law firm Saul's personal gym membership at H.O. Ward Boxing Gym Property taxes on their personal residence Federal income taxes withheld on Kim's salary State income taxes withheld on Kim's salary $98.050 $117,068 $14,000 $20,500 $2,100 $400 $4.835 $9,500 $13,160 $1,400 $10,085 5500 59,790 $6,000 $3,000 t Saul and Kim sold the following capital assets and each asset's cost basis was reported to the IRS on Form 1099-B: Madrigal Corporation stock: acquired 2/10/21, sold 3/13/22, sales price of $23,000, cost of $18,000 Beneke, Fabricators stock: acquired 3/3/22, sold 7/7/22, sales price of $16,000, cost of $20,000 HHM stock: acquired 6/7/15, sold 4/10/22, sales price of $12,000, cost of $14,000 *Saul owned the HHM stock and sold it to his brother, Chuck. Chuck turned around and sold the stock to Howard Hamlin, an unrelated party, for $13,000 Saul donated $12,500 in cash to his alma mater, University of American Samoa Law School (GO LAND CRABS!). Saul's business address is 12345 Inflatable Statute of Liberty Road, Albuquerque, NM 87101 , has a code of 541100 and uses the cash method of accounting. Do not enter a business EIN. Some helpful tips: Saul's business qualifies for the Qualified Business Income Deduction which is reported on Page 1, Line 13 of the 1040. To calculate the QBI deduction, you will first need to complete the Schedule C. After calculating the Net Profit on Line 31 of the Schedule C, you will need to subtract the deductible portion of the self-employment tax (one-half of the self-employment tax) from the Net Profit to arrive at Qualified Business Income. Once you have your Qualified Business Income, then you can calculate your QBI deduction. You do not need to complete Form 8995. Capital Gains is taxed at a separate tax rate than income. To calculate the Capital Gains tax, use the 2022 Qualified Dividends and Capital Gain Tax Worksheet- Line 12a which can be found in the 20221040 instructions on Page 36. To calculate the Income Tax, use the Tax Tables which can be found in the 20221040 instructions on Pages 65-77. For purposes of this problem, disregard the alternative minimum tax. Assignment Please prepare the Saul and Kim's tax return and relevant forms. Use 2022 tax forms from irs.gov. Prepare the tax return under the current 2022 tax law. You will need to prepare: - Forms 1040,4562 , and 8949 - Schedules 1, 2, A, B, C, D, and SE Please submit your completed assignment in Blackboard as PDF file(s). You can submit as one or multiple PDF files, whichever is easier for you. Please be sure you save your work in the PDF file so you do not submit a blank PDF file. I recommend that when you finish a tax return form or schedule, to "Print to PDF" and save the new PDF. This will ensure you do not submit a blank document. Also, you can scan in handwritten tax forms as a PDF file(s) but I will mark any answers incorrect if I am unable to read your handwriting (so please write neatly). The tax return assignment is due on the due date listed in Blackboard