Question
Based on the information provided on the following page, complete the Halliwells Form 1040 for 2015, including any required forms and attachments. Leo and Piper
Based on the information provided on the following page, complete the Halliwells Form 1040 for 2015, including any required forms and attachments.
Leo and Piper Halliwell are married and file a joint return. Their Social Security numbers are 000-00-1111 and 000-00-2222, respectively. Leo and Piper have one son, Wyatt, age 10. His Social Security number is 000-00-3333. They live at 1127 Carroll Avenue, San Francisco, CA 94101. They report their income on the cash method. During 2015, they report the following items:
Salary | $163,000 |
Interest income from money market accounts | 900 |
Dividend income from PPP Corp. stock | 1,700 |
Cash contributions to church | 9,000 |
Rental of a condominium in Los Angeles: | |
Rental income (45 days) | 12,000 |
Interest Expense | 7,000 |
Property taxes | 3,200 |
Maintenance | 1,700 |
Insurance | 2,000 |
Days of personal use | 15 |
The address of the condo is 98 Cole Lane, Los Angeles, CA 90001. It was purchased in 2008 for $200,000.
During the year the following events also occur:
They received a state tax refund of $600. Their total itemized deductions in 2014 were $36,297.
On June 20, 2015, Leo sells 400 shares of Spelling Corporation stock for $20,000. He purchased the stock on December 12, 2009 for $22,000.
On September 19, 2015, Piper discovers that the 4,000 shares of penny stock of Quake, Inc. she purchased on January 2 of the prior year is completely worthless. She paid $5,000 for the stock.
Instead of accepting the $60 the utility store offers for their old dishwasher, they donate it to Goodwill on November 21, 2015. They purchased the dishwasher for $750 on March 30, 2006. The new dishwasher costs $900.
They purchased the residence at 1127 Carroll Avenue on July 15, 2015 for $380,000. As part of the closing costs, they pay two points on the mortgage, which is interest rather than loan processing fees. This payment enables them to obtain a more favorable interest rate for the term of the loan. They also paid $8,400 in interest on the mortgage on their personal residence.
They pay $4,100 in property taxes on their residence and $7,500 in state income taxes.
On July 20, 2015, they donate 1,000 shares of Triad, Inc. stock to the local community college. The value of the stock on that date is $10,200. Triad, Inc. is a listed stock. They had purchased the stock on November 10, 2008 for $1,000.
$18,000 in federal income tax was withheld during the year.
They incur $6,000 of hospital expenses when Wyatt is injured at camp. They also spend $250 on prescriptions and $800 on follow-up doctor visits.
For purposes of this assignment, disregard the alternative minimum tax.
Do not need to do a W2, need to do the schedules
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