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Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year.
Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at Pacific Coast Highway, Laguna Beach, CA Brian is an optometrist who owns his business; Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful oneyearold girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current members of their household are for Brian, for Corrine, for Brady, and for Hank. Their birth dates are as follows: Brian, ; Corrine, ; Brady, ; and Hank, The following are Brians income and expense information from his business and Corrines W from Orange County.
Brians optometrist office income and expenses for the current year:
Gross income $
Cost of goods sold Beginning inventory $; Purchases $; Ending inventory $ Cost method used to value closing inventory
Advertising
Wages
Office rent
Other
The Lees also made $ in federal estimated tax payments during the year on the applicable due dates $ per quarter
The Form W Corrine received from Orange County contained this information:
Wages box $
Federal WH box $
Social security wages box $
Social security WH box $
Medicare wages box $
Medicare WH box $
State income taxes box $
In addition, the Lees had the following income and expenses during the year:
Income
Interest from CDs at Pacific Coast Bank $
Expenses
Mortgage interest paid to PC Bank for their home $
Property taxes paid on their residence
Adoption expenses fees court costs, and attorneys fees
Child care costs at LB Parks and Recreations Main St Laguna Beach, CA EIN afterschool program for Hank
Prepare the Lees federal tax return. Use Form Schedule A Schedule B Schedule C and any additional appropriate schedules or forms they may need for credits. Do not complete Form with Schedule CAssume no AMT although it may apply; Form or the AMT calculation is not required. For any missing information, make reasonable assumptions. Assume that Brian follows cash basis of accounting. Use the appropriate Tax Tables or Tax Rate Schedules.
Note: List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows, while entering in Dependents section of Form PG Scroll down to access Schedule C Forms and shown separately.
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