Question
Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for this final project you will be completing an individual
Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for this final project you will be completing an individual tax return and then analyzing this experience. There are several requirements for this project that should be submitted during the weeks when there are Portfolio Project Milestones (Modules 2, 3, 4, 5, and 7) and that contribute to your final grade in this project.
Key Component:
Using the case data from the Case 1, complete the provided template that has the respective tax forms (Page 1 of Form 1040 and schedules) to complete the tax return. Complete all the applicable parts of the tax forms. Also, address any instructor feedback provided in the milestone submissions.
Requirements:
Submit your tax return and computations to the dropbox identified for that submission.
Review the Portfolio Project grading rubric to understand how you will be graded on this Portfolio Project.Contact your instructor if you have questions about the Portfolio Project.
Brian and Sheila Williams were married in October of 2005. They live at 1000 Main Street, Atlanta, GA 33127. Brian is a postal service worker. Sheila is a teacher at Grady High School. Brian's social security number is 555-11-1111 and Sheila's social security number is 555-22-2222. They have a dependent daughter Jayla who is 10 years old (Born on May 12th). Jayla's social security number is 555-33-3333. In 2013, Brian's wages was $45,860 while Sheila's was $43,590.
Determine all items that will be deducted before the AGI calculation. List all deductible items and determine where that deduction should appear on Form 1040
Two years ago, the taxpayer loaned a friend $2000. The friend has filed for bankruptcy this year and will not be able to repay
Earned $100 interest on county municipal bonds
Found a diamond worth $1000 on the ground
Received $500 in death benefits fron Brian's father
Received $4,000 court settlement. $1,000 was punitive damanges.
Brian paid $400/month in child support
Received a $1000 gift from his brother
Sheila won $100 playing bingo
Brian paid $200/month in alimony to his ex-wife
Sheila received a $1000 gift from her mother
Sheila spent $300 on supplies for her classroom
Portfolio Investments
Stock
Acquired
Sold
Sales Price
Cost (Basis)
Qualified Dividends
Red Stock
2/1/2013
10/5/2013
$6,000
$2,500
$0
White Stock
6/11/2006
10/15/2013
$5,000
$4,000
$100
Blue Stock
10/1/2002
8/3/2013
$2,000
$10,000
$0
Black Stock
3/6/2013
12/15/2013
$3,000
$5,000
$0
Yellow Stock
4/5/2000
N/A
N/A
$5,000
$300
Interest Income Source
Amount
Money Market Account
$200
Savings Account
$25
State Municipal Bonds
$35
Rental Property
They own and rent two pieces of residential real estate in Miami, FL. These properties were acquired with cash (so there are no mortgages on the homes). They both have real estate broker licenses in Georgia and Florida. They dedicate enough hours (through their business) to qualify as a "real estate professional" with regard to these properties.
Property 1
The first property is located at 17750 NW 17th Ave, Miami, FL. They collect $1,000 monthly in rent. The property was purchased June 30, 2010 for $150,000. The tax records show that the value of the land is $30,000 and the value of the home was $90,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax
$7,000/yr
Repairs
$900/yr
Insurance
$1,200/yr
Washing Machine
$300
(purchased 6/2/2012)
Refrigerator
$700
(purchased 7/1/2013)
Furniture
$2,000
(purchased 4/1/2011)
Property 2
The second property is located at 5610 NW 11th Ave, Miami, FL. They collect $1,500 monthly in rent. The property was purchased on June 12, 2010 for $100,000. The tax records show that the value of the land is $20,000 and the value of the home was $80,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax
$6,200/yr
Repairs
$3,000/yr
Insurance
$1,200/yr
Legal fees
$500/yr
Advertising Expense
$500/yr
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