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Please help to complete the Wilson's Federal income tax return for 2019

Comprehensive tax return problem 2

Comprehensive tax return problem 2 Wages paid to full-time employee 22.800 road tolls 2. Richard M and Anna K. Wilson Miscellaneous expense 20 e. Richard and Anna received Forms 1099-INT reporting interest income earned during 2019 from the following: Meals and entertainment expense of $1,700 included amounts spent for client development of $1,000 for meals and $700 for entertainment. Gibook of Mahwah $845 Montvale National Bank 900 Automobile expenses and amount paid to her children are not included in the above expenses. 755 Telstar Employee's Credit Union f. The Wilsons received the following dividends during 2019: Anna paid her daughters Lisa and Laura$750 and $450, respectively, for working part-time during the summer. Since she did not withhold or pay any Federal income or employment taxes on these amounts, Anna is not certain that she is allowed a deduction. She does feel the amount paid to her children were reasonable, however. a. Richard and Anna Wilson are married and file a joint return, Richard is 47 years of age, and Anna is 46. Richard is employed by Telstar Corporation as its controller, and Anna is self-employed as a travel agent. They have three children: Michael, age 22; Lisa age 17, and Laura age 14. Michael is full-time student at Rutgers University. Lisa and Laura both live at home and attend school full time. The Wilson currently live at 3721 Chestnut Ridge Road, Montvale, New Jersey 07645, in a home they have owned since July 2008 Richard and Anna provided over half of the support of Anna's mother, Ruth Knapp, who currently lives in a nursing home in Mahwah, New Jersey. They also provided over half of the support of their son, Michael, who earned $4,750 during the summer as an accounting student intern for a national accounting firm. b. Richard received a Form W-2 from his employer reporting the following information for 2019 Richard M. Wilson, Social Security NO.294-38-6249 Gross wages and taxable benefits $63,000 Telstar Corporation $300 Chevron Corporation 200 Anna purchased a new 2018 Honda Accord on November 20 of last year, and her tax accountant used the actual cost method in determining the deductible business expenses for her 2018 Federal tax return. Because the deductible amount seemed so small, she is not certain whether she should claim actual expenses (including depreciation), or simply use the automatic mileage method. She has the following records relating to the business auto: These dividends were labeled as qualified dividends on the respective Forms 1099-DIV. Original cost $26,000 Federal income taxes withheld 11.400 Depreciation claimed in 2018 ($26,000 X 5%=$1,300 x 80% business usel 1,040 F.I.C.A. taxes withheld: Gas, oil and repairs in 2019 1.790 8. The Wilsons have never had a foreign bank account or created a foreign trust. . h. The Wilsons had the following property transactions for 2019 1. Anna sold 300 shares of Chevron Corporation stock on September 9, 2019, in order to pay for Michael's fall semester of college. She received a check in the amount of $14,950 from Merrill Lynch on September 16, 2019. The stock was from a black of 1,000 shares that Richard and Anna had purchased for $35 per share on February 1, 2006. 2. They gave each of children 100 shares of Chevron stock on December 30,2019, when the stock was valued at $62.50 per share. The stock was from the same block of stock purchased for $35 per share in February 2005. No gift taxes were paid on these gifts. Social security 3,906 Parking and tolls directly related to her work paid in 2019 410 Medicare 914 Insurance for 2019 650 State income taxes withheld 1850 Interest on car loan for 2019 750 The taxable benefits reported on his W-2 include $2,700 (based on the currently deductible standard auto mileage rate) for Richard's personal use of the company car provided by his employer. c. Anna operates her business under the name, "Wilson's Travel Agency Located at 7200 Treeline Drive, Montvale, NJ 07645. Anna has one full time employee, and her federal employer identification number is 74-2638596. Anna drove the auto 20,000 miles for business purposes and 5,000 miles for personal purposes during the year. The above expenses for 2019 have not been reduced to reflect her personal use of the vehicle. On January 7, 2019, Anna purchased the following items for use in her business: 3. They gave 100 shares of Chevron stack to Richard's alma mater, Rider University, on December 29,2019. The average trading price of Chevron stock on that day was $61.25. This stock was also from the original block of 1,000 shares the Wilsons had purchased from $35 per share in 2006. The address of Rider University is 2083 Lawrenceville Road, Lawrenceville, New Jersey 08648. Office furniture $8,900 Copying machine 5,700 Anna uses the cash method of accounting for her business, and her records for 2019 show the following: Fees and commissions | $134,000 Expenses: Dell notebook computer 1,500 4. On May 17, 2019, Richard and Anna were notified by the bankruptcy judge handing the affairs of Bubbling Crude Oil Company in Houston, Texas, that the company's shareholders would not receive anything for their stock ownership because all of the assets were used to satisfy claims of creditors. Richard had purchased 2,000 shares of the stock for $6 per share on April 1, 2010. Unfortunately, the stock did not meet the requirements of $1244. . Richard and Anna own a rental condominium located at 7777 Board walk in Atlantic City, Mew Jersey. The unit was purchased on July 29, 2018, for $25,000 cash and a $175,000 mortgage. Of the purchase price, $50,000 was allocated to the land. The following items relate to the rental unit for 2019: Printer 1,600 Advertising 1,425 Fax machine 300 Bank services charges 75 gross rents $16,400 Anna wishes to claim the maximum amount of depreciation deductions for other cast recovery allowed on the office furniture and equipment Dues and subscriptions 560 expenses: Insurance 1,100 d. Richard attended an accounting convention in Washington, D.C. for three days in October. He incurred the following unreimbursed expenses related to the trip: managements fee 2,460 Interest on furniture loan 960 air fare (round tripl $470 cleaning and maintenance 1,200 Professional services 700 840 registration fee for meeting 225 insurance Office rent 6,000 hotel cost 375 property taxes 2,750 Office Supplies 470 meals 130 12.675 interest paid on mortgage Meals and entertainment 1,700 850 utilities taxis 20 Payroll taxes 2,170 airport parking 18 Although the unfurnished unit was vacant for 11 weeks during the year, the Wilsons never used the property for personal purposes. When the property is rented, the tenant is required to pay for all utilities, and the Wilsons are charged a Utilities and telephone 3,480 Anna K. Wilson 296-48-2385 management fee equal to 15% of the rents collected. The rental is not a qualified business for purposes of the qualified business income deduction of Section 199A Michael D. Wilson 256-83-4421 j. The Wilson have prepared the following summary of their ather expenditures for 2019: Lisa M. Wilson 257-64-7573 prescription medicines and drugs $425 Laura D. Wilson 258-34-2894 medical insurance premiums (paid by Richard 1,595 Ruth Knapp 451-38-3790 doctor's and hospital bills (net of reimbursements 805 (1) 9. The Wilson have always checked the "no" boxes on their Form 1040 regarding the Presidential Election Campaign fund contribution dentist 2,750 (2) real estate taxes paid on home 1625 r. Mr. and Mrs. Wilson along with the children and Mrs. Knapp, were covered by health insurance for the entire year. state income taxes paid during 2019 31 Required: ($525 on 4/15, 6/15, 9/15, and 12/15) 2,100 Complete the Wilson's Federal income tax return for 2019. If they have a refund due, they would prefer having it credited against their 2020 taxes. Interest paid for: Original home mortgage 8,690 Home equity loan (secured by home) 410 (4) Credit card interest 275 Personal car loan 725 Cash contribution to First Presbyterian Church 1,200 Fee for preparation of 2018 tax retum 650 (5) (1) Does not include $11,485 of doctor bills paid by Richard and Anna for medical treatment provided to Anna's mother at the nursing home. Also not included is $115 that Anna paid for a new pair of eyeglasses for her mother. (2) $2,350 of this amount represents a prepayment of Laura's braces. The dentist required the prepayment before he would begin the two-year dental program involved. (3) Does not include amounts withheld from Richard's wages. (4) Represents interest paid on a $25,000 home equity loan obtained by the Wilsons in 2019 to obtain a new speed boat. (5) $200 is related to preparation of Schedule Please help, I edited question for legible! it too long question, so I divided post . total questions: a-r Please help to complete the Wilson's Federal income tax return for 2019-1040, schedule B, schedule C, schedule D, schedule 1, schedule E, schedule A, schedule 2, schedule 3, short self-employment tax, form 8863, form 4562,8283,8582,8863,8449 and 8995 Comprehensive tax return problem 2 k. Anna made an $11,500 deductible contribution to her Keogh plan on December 15, 2019. L. Richard paid the following unreimbursed employee business expenses: professional dues $450 professional journals 385 office gifts to subordinates (none over $25) 115 m. During the year, the Wilsons paid tuition of $9,350 and spent $1,875 on backs and supplies for Michael's senior year of college. n. The Wilsons received a state income tax refund of $130 in 2019. They had $18,750 of itemized deductions for 2018 and their 2018 taxable income was $52,825. 0. Richard and Anna made timely estimated Federal income tax payments of $2,250 each quarter on 4/15/19, 6/15/19, 9/15/19, and 1/15/20 p. Social Security numbers for Anna, the children, and Anna's mother are provided below: Comprehensive tax return problem 2 Wages paid to full-time employee 22.800 road tolls 2. Richard M and Anna K. Wilson Miscellaneous expense 20 e. Richard and Anna received Forms 1099-INT reporting interest income earned during 2019 from the following: Meals and entertainment expense of $1,700 included amounts spent for client development of $1,000 for meals and $700 for entertainment. Gibook of Mahwah $845 Montvale National Bank 900 Automobile expenses and amount paid to her children are not included in the above expenses. 755 Telstar Employee's Credit Union f. The Wilsons received the following dividends during 2019: Anna paid her daughters Lisa and Laura$750 and $450, respectively, for working part-time during the summer. Since she did not withhold or pay any Federal income or employment taxes on these amounts, Anna is not certain that she is allowed a deduction. She does feel the amount paid to her children were reasonable, however. a. Richard and Anna Wilson are married and file a joint return, Richard is 47 years of age, and Anna is 46. Richard is employed by Telstar Corporation as its controller, and Anna is self-employed as a travel agent. They have three children: Michael, age 22; Lisa age 17, and Laura age 14. Michael is full-time student at Rutgers University. Lisa and Laura both live at home and attend school full time. The Wilson currently live at 3721 Chestnut Ridge Road, Montvale, New Jersey 07645, in a home they have owned since July 2008 Richard and Anna provided over half of the support of Anna's mother, Ruth Knapp, who currently lives in a nursing home in Mahwah, New Jersey. They also provided over half of the support of their son, Michael, who earned $4,750 during the summer as an accounting student intern for a national accounting firm. b. Richard received a Form W-2 from his employer reporting the following information for 2019 Richard M. Wilson, Social Security NO.294-38-6249 Gross wages and taxable benefits $63,000 Telstar Corporation $300 Chevron Corporation 200 Anna purchased a new 2018 Honda Accord on November 20 of last year, and her tax accountant used the actual cost method in determining the deductible business expenses for her 2018 Federal tax return. Because the deductible amount seemed so small, she is not certain whether she should claim actual expenses (including depreciation), or simply use the automatic mileage method. She has the following records relating to the business auto: These dividends were labeled as qualified dividends on the respective Forms 1099-DIV. Original cost $26,000 Federal income taxes withheld 11.400 Depreciation claimed in 2018 ($26,000 X 5%=$1,300 x 80% business usel 1,040 F.I.C.A. taxes withheld: Gas, oil and repairs in 2019 1.790 8. The Wilsons have never had a foreign bank account or created a foreign trust. . h. The Wilsons had the following property transactions for 2019 1. Anna sold 300 shares of Chevron Corporation stock on September 9, 2019, in order to pay for Michael's fall semester of college. She received a check in the amount of $14,950 from Merrill Lynch on September 16, 2019. The stock was from a black of 1,000 shares that Richard and Anna had purchased for $35 per share on February 1, 2006. 2. They gave each of children 100 shares of Chevron stock on December 30,2019, when the stock was valued at $62.50 per share. The stock was from the same block of stock purchased for $35 per share in February 2005. No gift taxes were paid on these gifts. Social security 3,906 Parking and tolls directly related to her work paid in 2019 410 Medicare 914 Insurance for 2019 650 State income taxes withheld 1850 Interest on car loan for 2019 750 The taxable benefits reported on his W-2 include $2,700 (based on the currently deductible standard auto mileage rate) for Richard's personal use of the company car provided by his employer. c. Anna operates her business under the name, "Wilson's Travel Agency Located at 7200 Treeline Drive, Montvale, NJ 07645. Anna has one full time employee, and her federal employer identification number is 74-2638596. Anna drove the auto 20,000 miles for business purposes and 5,000 miles for personal purposes during the year. The above expenses for 2019 have not been reduced to reflect her personal use of the vehicle. On January 7, 2019, Anna purchased the following items for use in her business: 3. They gave 100 shares of Chevron stack to Richard's alma mater, Rider University, on December 29,2019. The average trading price of Chevron stock on that day was $61.25. This stock was also from the original block of 1,000 shares the Wilsons had purchased from $35 per share in 2006. The address of Rider University is 2083 Lawrenceville Road, Lawrenceville, New Jersey 08648. Office furniture $8,900 Copying machine 5,700 Anna uses the cash method of accounting for her business, and her records for 2019 show the following: Fees and commissions | $134,000 Expenses: Dell notebook computer 1,500 4. On May 17, 2019, Richard and Anna were notified by the bankruptcy judge handing the affairs of Bubbling Crude Oil Company in Houston, Texas, that the company's shareholders would not receive anything for their stock ownership because all of the assets were used to satisfy claims of creditors. Richard had purchased 2,000 shares of the stock for $6 per share on April 1, 2010. Unfortunately, the stock did not meet the requirements of $1244. . Richard and Anna own a rental condominium located at 7777 Board walk in Atlantic City, Mew Jersey. The unit was purchased on July 29, 2018, for $25,000 cash and a $175,000 mortgage. Of the purchase price, $50,000 was allocated to the land. The following items relate to the rental unit for 2019: Printer 1,600 Advertising 1,425 Fax machine 300 Bank services charges 75 gross rents $16,400 Anna wishes to claim the maximum amount of depreciation deductions for other cast recovery allowed on the office furniture and equipment Dues and subscriptions 560 expenses: Insurance 1,100 d. Richard attended an accounting convention in Washington, D.C. for three days in October. He incurred the following unreimbursed expenses related to the trip: managements fee 2,460 Interest on furniture loan 960 air fare (round tripl $470 cleaning and maintenance 1,200 Professional services 700 840 registration fee for meeting 225 insurance Office rent 6,000 hotel cost 375 property taxes 2,750 Office Supplies 470 meals 130 12.675 interest paid on mortgage Meals and entertainment 1,700 850 utilities taxis 20 Payroll taxes 2,170 airport parking 18 Although the unfurnished unit was vacant for 11 weeks during the year, the Wilsons never used the property for personal purposes. When the property is rented, the tenant is required to pay for all utilities, and the Wilsons are charged a Utilities and telephone 3,480 Anna K. Wilson 296-48-2385 management fee equal to 15% of the rents collected. The rental is not a qualified business for purposes of the qualified business income deduction of Section 199A Michael D. Wilson 256-83-4421 j. The Wilson have prepared the following summary of their ather expenditures for 2019: Lisa M. Wilson 257-64-7573 prescription medicines and drugs $425 Laura D. Wilson 258-34-2894 medical insurance premiums (paid by Richard 1,595 Ruth Knapp 451-38-3790 doctor's and hospital bills (net of reimbursements 805 (1) 9. The Wilson have always checked the "no" boxes on their Form 1040 regarding the Presidential Election Campaign fund contribution dentist 2,750 (2) real estate taxes paid on home 1625 r. Mr. and Mrs. Wilson along with the children and Mrs. Knapp, were covered by health insurance for the entire year. state income taxes paid during 2019 31 Required: ($525 on 4/15, 6/15, 9/15, and 12/15) 2,100 Complete the Wilson's Federal income tax return for 2019. If they have a refund due, they would prefer having it credited against their 2020 taxes. Interest paid for: Original home mortgage 8,690 Home equity loan (secured by home) 410 (4) Credit card interest 275 Personal car loan 725 Cash contribution to First Presbyterian Church 1,200 Fee for preparation of 2018 tax retum 650 (5) (1) Does not include $11,485 of doctor bills paid by Richard and Anna for medical treatment provided to Anna's mother at the nursing home. Also not included is $115 that Anna paid for a new pair of eyeglasses for her mother. (2) $2,350 of this amount represents a prepayment of Laura's braces. The dentist required the prepayment before he would begin the two-year dental program involved. (3) Does not include amounts withheld from Richard's wages. (4) Represents interest paid on a $25,000 home equity loan obtained by the Wilsons in 2019 to obtain a new speed boat. (5) $200 is related to preparation of Schedule Please help, I edited question for legible! it too long question, so I divided post . total questions: a-r Please help to complete the Wilson's Federal income tax return for 2019-1040, schedule B, schedule C, schedule D, schedule 1, schedule E, schedule A, schedule 2, schedule 3, short self-employment tax, form 8863, form 4562,8283,8582,8863,8449 and 8995 Comprehensive tax return problem 2 k. Anna made an $11,500 deductible contribution to her Keogh plan on December 15, 2019. L. Richard paid the following unreimbursed employee business expenses: professional dues $450 professional journals 385 office gifts to subordinates (none over $25) 115 m. During the year, the Wilsons paid tuition of $9,350 and spent $1,875 on backs and supplies for Michael's senior year of college. n. The Wilsons received a state income tax refund of $130 in 2019. They had $18,750 of itemized deductions for 2018 and their 2018 taxable income was $52,825. 0. Richard and Anna made timely estimated Federal income tax payments of $2,250 each quarter on 4/15/19, 6/15/19, 9/15/19, and 1/15/20 p. Social Security numbers for Anna, the children, and Anna's mother are provided below