attached is the tax assignment that I need help with

Individual Tax Return Project Robert T. and Amy A. Bell This assignment requires the completion of a Federal Individual Income tax return. You may prepare the tax return using tax software or use the IRS's \"fill-in\" forms. The forms may be found by going to www.irs.gov then to - Forms and Publications. I highly suggest using tax software to prepare the return. The forms you will need are the Year 2010 Form 1040. Use additional forms as needed. While the assignment is set up for the tax year 2010 you may use 2009 or 2010 forms/ software if necessary. Use the tax law as of December 31, 2011. The returns must be completed no later than April 25, 2012 at 1pm. You may turn in a paper copy or email the return and attachments to me at steve.solcher@utdallas.edu If you email you MUST send in .pdf format. For every DAY that the return is turned in EARLIER than the due date 1 bonus point is awarded. There is a maximum of 10 bonus points available. For every day the return is late 20 points will be deducted. The return is worth a base of 90 points. This project is an individual assignment. It is NOT a group assignment. I am looking for the following (and will grade accordingly) with this assignment: 1. Correct use of the Forms. 2. Issue identification. 3. Documentation. For any judgment call you must document your position. A short summary of facts/ law/ conclusion is required. On the second page I have an example of documentation. Here is an example of what I am looking for in terms of documentation: 1.1 TAXPAYER BIOGRAPHICAL INFORMATION: Moira qualifies for 3 exemptions determined as follows: Moira qualifies for one personal exemption. Moira may also claim the following as dependents: Oliver Plunkett Ryan. All dependency tests have been satisfied for a qualifying child. Jane O'Dea Sullivan. She has satisfied all tests as a qualifying relative. Social Security benefits are not counted in the gross income test. Therefore, her gross income was limited to dividend and interest income of $1,775, which falls below the $3,650 threshold. She passed all of the other tests of dependency. Moira cannot claim the following as dependent: Dennis Harrison Ryan. He failed multiple tests as either a qualifying child or as a qualifying relative. 3.1 Medical Expenses: The following medical-related expenses are deductible before the 7.5% of AGI limitation on Schedule A, line 1. Doctor bills for Moira $1,200 Dentist bills for Oliver $2,000 Total qualifying expenses $3,200 Funeral expenses are not deductible. TAX CASE: ACCT 3350 Fall 2012 Jeff J. and Ivy N. Bell (ages 42 and 41) are married and live at 4326 Orange Blossom Trail, Dallas, TX 75080. Jeff is the regional manager for a budget motel chain (Rest Inn), while Ivy is a self-employed architect. They file a joint return and use the cash basis for tax purposeJ. 1. Jeff receives a yearly salary of $80,000, plus an annual bonus, from Rest Inn. The annual bonus is determined in December of each year but not paid until January of the following year. Jeff's bonus is $16,000 for 2009 (received in 2010) and $7,000 for 2010 (received in 2011). Jeff also is paid a flat travel allowance of $16,000 per year. The allowance is to cover his expenses in visiting motels in his region to conduct inspections, consult with the local managers, and recruit potential hires. Although Jeff maintains substantiation of his travel, he is not required to account for these expenses to Rest Inn. Jeff participates in his employer's group health insurance plan to which he contributed $3,600 in 2010 for medical coverage. Rest Inn does not provide any retirement benefits, but it has established a 401(k) plan to enable its employees to make Voluntary contributions. Jeff did not contribute to the plan in 2010. The company provides an office for Jeff's use that is located at Suite 419, 110 Palm Boulevard, Dallas, TX. 2. Jeff's employment-related expenses for 2010 are as follows: Airfare $5,100 Lodging: not at a Rest Inn $4,200 Lodging: value of stays at a Rest Inn $3,300 Meals $800 Entertainment $350 Car rentals, limos, taxis $750 Parking and tolls (during travel) $150 Subscriptions to trade journals $100 Dues to trade association $250 Business gifts $550 While on business trips in his car, Jeff was caught in several small-town speed traps and paid fines of $620. The business gifts were made at Christmas and consisted of gift cards ($50 each) to a national chain restaurant. They were sent to II key managers of motels in Jeff's region. 3: Ivy is a licensed architect who works part-time on a consulting basis. Her major clients are real estate developers (both residential and commercial) for which she prepares structural designs and construction plans. She also advises on building code requirements regarding the renovation and remodeling of existing structures. Because she limits her engagements, she does not have a separate office but does her work at the client's premises or in her office at home (see item 5 below). Her business expenses for 2010 are summarized below: Drafting supplies $5,000 Reproduction materials (e.g., molds, models, photos, blueprints, copies) $4,000 On-site work clothing (e.g., hip boots, safety glasses, safety helmet) $3,000 Occupation fee $1,000 Subscriptions to professional journals $500 Dues to professional organizations $250 In addition, she drove the family Acura (purchased on June 7, 2009) 940 miles on her job assignments. Regarding the Acura, Ivy uses the automatic mileage method for tax deduction purposes. She drove the car for 10,000 miles during the year. 4. One of Ivy's clients was interested in building a shopping center on a tract of land she owned in Levy County. Ivy inherited the property from her aunt when she died on June 6, 1990. At that time, the land was worth $140,000. It has since been rezoned for commercial use and has a current value of$260,000. On February 10, 2010, the following exchange took place in the office of an attorney: Ivy exchanged the Levy parcel for a similar tract in Dixie County (worth $190,000) and cash of$10,000. 5. On September 2, 2010, Ivy sold a tract of land in Citrus County to a farmer who owned the adjoining property. The land was inherited from the same aunt and had a value of $130,000 on June 6, 1990. Under the terms of the sale, Ivy received cash of $70,000 and four notes of$25,000 each payable at one-year intervals with simple interest of 8% provided for. To the extent allowed, Ivy wants to defer recognition of gain as long as possible. 6. On August 5, 2008, Jeff purchased 5,000 shares of Zynga common stock for $20 a share as part of its initial public offering. The corporation was formed to establish and operate farmers'. markets in mid-size cities throughout the United States. Although some market locations were profitable, as a whole the venture proved to be a failure. By December 2010, Zynga was taken over by creditors, and its stock became worthless. 7. Besides the items previously noted, the Bells had the following receipts for 2010: Ivy's consulting income $50,000 Interest income: City of Clearwater bonds $1,000 Ford Motor Company bonds $5,000 CD issued by Wells Fargo Bank $5,000 Loan repayment by Sarah Duval $4,000 Cash gifts from Ivy's parents $12,000 Federal income tax refund (2009 return) $10,000 Ivy's consulting income includes a $3,000 payment for work she did in 2009 but does not include $5,000 she billed in November for work performed in 2010. One client who has owed her $6,000 for work done in 2008 was convicted of arson in 2010 and is serving time in state prison. Ivy feels certain that she will never collect the $6,000. 8. In addition to the items already mentioned, the Bells had the following expenditures for 2010:I Life insurance premiums $1,000 Medical and dental expense not covered by insurance $4,000 Taxes: Ad valorem taxes on personal residence $5,000 State and local sales taxes $7,000 Interest on home mortgage $4,000 ContributionsSalvation Army (Tampa branch) $500 Texas governor's election campaign fund $1,000 During 2010, the Bells had gambling winnings of $1,200 and losses of $2,200-all supported by records. 9. The Bells maintain a household that includes two children, Anna Marie (age 19) and Tyler (age 16). Anna Marie graduated from high school on May 18, 2010, and is undecided about college. Tyler is a junior in high school. Anna Marie is an accomplished vocalist and during 2010 was able to earn $7,200 performing at various functions (e.g., weddings, funerals). She placed most of her earnings in a savings account and kept only a small amount to spend on herself. 10. Jeff's Form W-2 from Rest Inn shows $15,000 withheld for Federal income tax. The Bells also have made total quarterly income tax payments of $4,000. Ivy's professional activity code is 541310. Relevant Social Security numbers are noted below: Social Security Name Number Birth Date Jeff J. Bell 111-11-1111 07/01/1968 Ivy N. Bell 123-45-6781 03/20/1969 Anna Marie Bell 123-45-6784 05/02/1991 Tyler Bell 123-45-6788 06/30/1994 REQUIREMENTS Prepare an income tax return (with appropriate schedules) for the Bells for 2010. Make necessary assumptions for facts not stated in the problem. If a refund results, the taxpayers want it sent to them. The Bells do not wish to contribute to the Presidential Election Campaign Fund. In the past several years, the Bells have itemized their deductions from AGI (have not claimed the standard deduction option