asap

Alice J. and Bruce M. Jones (cash basis taxpayers) are married and reside in Westchester at 10 William Street, White Plains, NY 10603. Alice's birthday is September 21, 1961 (SSN: 233-45-0098), and Bruce's is June 27, 1960 (SSN: 109-33-9923). Alice is the office manager for NY Dental Clinic. Bruce is the manager of Superfast Burgers, a fast food outlet owned and operated by Burgers First Corporation. The Jones has two children, Cynthia (born January 25, 1999, Social Security number 017-44-9126) and John (born February 7, 2000, Social Security number 017-27- 4148), both of whom live with them. Cynthia is full-time college students and lives with her parents except when she is on summer vacation visiting Alice's sister in France. To assist in paying her tuition, Cynthia earned $10,250 from babysitting in 2020. John earned $3,200 from a part-time job but did not attend school in 2020. The Jones' also have legal custody of Elizabeth James, their niece, (born April 14, 2014, SSN: 223-33-4432) who lived with them since birth. Elizabeth James earned 52,000.00 in 2020 from child modeling, all of which was placed in trust for her future benefit by her court appointed guardian. 1 Other relevant information: Bruce has decided that he wants to minimize his tax liability as much as legally possible and has requested your assistance in preparing his 2020 Federal income tax return. Bruce and Alice earned and received $4,350 interest income from a savings account at Chase Bank in 2020. Alice earned interest of $1,975.00 from United States Treasury bonds, and $5,000.00 from NYS HWY Bonds in 2020. Only $3,750 of the NYS HWY bond interest was paid in 2020 and $1,250 paid in 2021; On January 29, 2020 Bruce received a stock dividend from Citibank. The FMV on the date the stock received was $3,500.00. The stock was purchased on November 23, 2019. The record date was December 31, 2019. Bruce also received an option of choosing to take the stock or receiving cash equal to the fair market value of the stock on January 29, 2020. In 2020, Bruce paid $25,000.00 in alimony to his ex-wife. The divorce was VALA On January 29, 2020 Bruce received a stock dividend from Citibank. The FMV on the date the stock received was $3,500.00. The stock was purchased on November 23, 2019. The record date was December 31, 2019. Bruce also received an option of choosing to take the stock or receiving cash equal to the fair market value of the stock on January 29, 2020. In 2020, Bruce paid $25,000.00 in alimony to his ex-wife. The divorce was settled on July 01, 2019. 1 I On December 31, 2020, Alice received a check for $21,500 from Consolidated Title Agency LLC for consulting services performed during the year. The check was dated December 31, 2020, but the company asked Alice to hold the check until January 05, 2021. Although Consolidated Title Agency had a zero dollars balance in its checking account on December 31, 2020, the company had a line of credit with the bank, which ensured that all checks written by Consolidated would be honored up to the company's credit limited of $50,000. As of December 31, 2020, the available balance on the credit line was $35,000.00 On April 24, 2020, Alice found a gold watch, which she reported to the police. The Police held the watch for sixty days to see if someone would claim it, but no one came forth. On June 25, 2020, the police returned the watch to Alice to keep. The watch was valued at 12,750 on June 25, 2020. Alice sold the watch on December 15, 2020 for $15,000.00 1 DAD 7 Highli On April 24, 2020, Alice found a gold watch, which she reported to the police. The Police held the watch for sixty days to see if someone would claim it, but no one came forth. On June 25, 2020, the police returned the watch to Alice to keep. The watch was valued at 12,750 on June 25, 2020. Alice sold the watch on December 15, 2020 for $15,000.00. On December 31, 2019, Bruce received a check in the amount of $50,000.00 from Mutual of America for life insurance benefits from his brother who recently died and had named Bruce as the sole beneficiary. The check was dated December 28, 2019, but Bruce decided not deposit the check until January 03, 2020. The Jones had been in negotiations with Bank of America to reduce the excessive amount of credit card debt they had accumulated over the past several years. Finally, on October 7, 2020, Bank of America forgave $10,500.00 of credit card debt. Bruce and Alice 2020 W-2 Istatement shows the following wages and withholdings: Bruce Alice 1) Wages $75,000 $50,000 2) FWT 9,800 8,200 3) SWT 4,500 3,700 4) CWT 3,700 2,500 The Jones also paid the following personal expenses in 2020: a. Contribulions to Church $12,000 Instructions: Make realistic assumptions about any missing or inconsistent data and state your assumptions on a separate typed schedule. Required: i. Prepare form 1040 for Bruce and Alice only, including all schedules and forms for 2020. (Do not prepare NYS or NYC tax returns). Alice J. and Bruce M. Jones (cash basis taxpayers) are married and reside in Westchester at 10 William Street, White Plains, NY 10603. Alice's birthday is September 21, 1961 (SSN: 233-45-0098), and Bruce's is June 27, 1960 (SSN: 109-33-9923). Alice is the office manager for NY Dental Clinic. Bruce is the manager of Superfast Burgers, a fast food outlet owned and operated by Burgers First Corporation. The Jones has two children, Cynthia (born January 25, 1999, Social Security number 017-44-9126) and John (born February 7, 2000, Social Security number 017-27- 4148), both of whom live with them. Cynthia is full-time college students and lives with her parents except when she is on summer vacation visiting Alice's sister in France. To assist in paying her tuition, Cynthia earned $10,250 from babysitting in 2020. John earned $3,200 from a part-time job but did not attend school in 2020. The Jones' also have legal custody of Elizabeth James, their niece, (born April 14, 2014, SSN: 223-33-4432) who lived with them since birth. Elizabeth James earned 52,000.00 in 2020 from child modeling, all of which was placed in trust for her future benefit by her court appointed guardian. 1 Other relevant information: Bruce has decided that he wants to minimize his tax liability as much as legally possible and has requested your assistance in preparing his 2020 Federal income tax return. Bruce and Alice earned and received $4,350 interest income from a savings account at Chase Bank in 2020. Alice earned interest of $1,975.00 from United States Treasury bonds, and $5,000.00 from NYS HWY Bonds in 2020. Only $3,750 of the NYS HWY bond interest was paid in 2020 and $1,250 paid in 2021; On January 29, 2020 Bruce received a stock dividend from Citibank. The FMV on the date the stock received was $3,500.00. The stock was purchased on November 23, 2019. The record date was December 31, 2019. Bruce also received an option of choosing to take the stock or receiving cash equal to the fair market value of the stock on January 29, 2020. In 2020, Bruce paid $25,000.00 in alimony to his ex-wife. The divorce was VALA On January 29, 2020 Bruce received a stock dividend from Citibank. The FMV on the date the stock received was $3,500.00. The stock was purchased on November 23, 2019. The record date was December 31, 2019. Bruce also received an option of choosing to take the stock or receiving cash equal to the fair market value of the stock on January 29, 2020. In 2020, Bruce paid $25,000.00 in alimony to his ex-wife. The divorce was settled on July 01, 2019. 1 I On December 31, 2020, Alice received a check for $21,500 from Consolidated Title Agency LLC for consulting services performed during the year. The check was dated December 31, 2020, but the company asked Alice to hold the check until January 05, 2021. Although Consolidated Title Agency had a zero dollars balance in its checking account on December 31, 2020, the company had a line of credit with the bank, which ensured that all checks written by Consolidated would be honored up to the company's credit limited of $50,000. As of December 31, 2020, the available balance on the credit line was $35,000.00 On April 24, 2020, Alice found a gold watch, which she reported to the police. The Police held the watch for sixty days to see if someone would claim it, but no one came forth. On June 25, 2020, the police returned the watch to Alice to keep. The watch was valued at 12,750 on June 25, 2020. Alice sold the watch on December 15, 2020 for $15,000.00 1 DAD 7 Highli On April 24, 2020, Alice found a gold watch, which she reported to the police. The Police held the watch for sixty days to see if someone would claim it, but no one came forth. On June 25, 2020, the police returned the watch to Alice to keep. The watch was valued at 12,750 on June 25, 2020. Alice sold the watch on December 15, 2020 for $15,000.00. On December 31, 2019, Bruce received a check in the amount of $50,000.00 from Mutual of America for life insurance benefits from his brother who recently died and had named Bruce as the sole beneficiary. The check was dated December 28, 2019, but Bruce decided not deposit the check until January 03, 2020. The Jones had been in negotiations with Bank of America to reduce the excessive amount of credit card debt they had accumulated over the past several years. Finally, on October 7, 2020, Bank of America forgave $10,500.00 of credit card debt. Bruce and Alice 2020 W-2 Istatement shows the following wages and withholdings: Bruce Alice 1) Wages $75,000 $50,000 2) FWT 9,800 8,200 3) SWT 4,500 3,700 4) CWT 3,700 2,500 The Jones also paid the following personal expenses in 2020: a. Contribulions to Church $12,000 Instructions: Make realistic assumptions about any missing or inconsistent data and state your assumptions on a separate typed schedule. Required: i. Prepare form 1040 for Bruce and Alice only, including all schedules and forms for 2020. (Do not prepare NYS or NYC tax returns)