bedeute/content/?cmd view.content d 3157815 1 coursed 71059 Support The Gomezes did not own, control, or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year. The Gomezes paid the following expenses during the year (in addition to the personal residence-related items listed above): Dentist (unreimbursed by insurance) $ 500 Doctors (unreimbursed by insurance) $1.750 Prescriptions (unreimbursed by insurance) $ 425 Personal behicle property tax based upon value $ 1,950 Contribution to qualified charities $9,500 The Gomezes did not pay any state income taxes during the year. Other Information The Gomezes made timely federal estimated tax payments for 2019 as follows: April 15, 2019 $7.000 June 15, 2019 $7,000 September 15, 2019 $7.000 January 15, 2019 $7.000 The Gomezes want to contribute to the Presidential Election Campaign Fund. The Gomezes would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. whedu/webapp/blackboard/execute/content/file/cmd=view&content id= 3157815_18.course_jd = 73059,1 Support Qurces Maria owns 20 acres of vacant ground within the city limits of Lubbock. Maria acquired the land as a gift from her parents on July 1, 2011. The land was valued at $4,000 per acre on the date of the gift. Her parents purchased the land in 1995 at a price of $500 per acre. Maria has held this land as an investment since she received it. On September 15, 2019 Maria exchanged this land with a development company that plans to develop the 20 acres (Maria and the development company are not related parties). In exchange for the 20 acres, Maria received a condominium in Lubbock that was valued at $160,000. The building was valued at $120,000 and the land was valued at $40,000. The condominium is located at 990 El Mar, Unit A, Lubbock Texas 79401. Maria first rented out the El Mar unit on October 1, 2019. The revenue and expenses from the rental unit from October through December are as follows: Rental revenue $3,600 HOA fee expense $300 Property taxes paid $225 Utilities expense $350 No Form(s) 1099 were required to be filed for this rental. Maria is not considered an active participant and the rental activity does not produce Qualified Business Income. ont The Gomezes also received the following Forms 1099 for the year: CORRECTED (checked PAVLITIR 2019 Interest Income 1099-INT 21 Grand Junction City authent o search 543 West La Patera Cty of town, state of province, country, and ZP a foreign postal code the addresa deaction Support 8 Addresa dearplion of property in mat Intructional da de Lubbock, TX 79401 Number of properties sauring the 10 other mortgage reported in bone portthet a ne bote Account number on instructions Form 1098 Keep for your record www.n.govForm1098 Department of the The Maria utilized a room in the La Patera home for her bookkeeping business. The room was used exclusively on a regular basis as Maria's principal place of business. Maria wants to maximize her home office deduction related to this use. The room she uses is 200 square feet. In the summer of 2019, the Gomez family rented out the La Patera residence to another family. The la Patera residence is situated along the ninth green of the famous Lubbock Country Club (LCC). The LCC hosted the U.S. Senior Open golf tournament this year. The Gomez family rented their residence to a golfer participating in the event for $1,200 per day for 10 days (the home office remained locked and off limits to the renters, however). During this time the Gomez family went on vacation touring the west coast of the United States. The Gomez family incurred $1.500 of cleaning and other expenses associated with the 10-day rental period. Maria's business is a specified service business for purposes of the Qualified Business Income Deduction. On January 3, 2019, the Gomezes sold their prior principal residence. They purchased that residence on January 31, 2013 and had lived there full-time until they sold it this year. They originally purchased the home for $310,000. The Gomez family has never claimed any tax depreciation (nor were they allowed to) on the home. The sales price of the home was $405,000. The home is located at 45 East Entrada Trail, Lubbock Texas 79401 The Gomez family purchased (and moved into their current residence at 543 West La Patera. Lubbock. Texas 79401 in late January of 2019. The La Patera residence is 2,000 square feet. The purchase price of the residence was $500,000 (building value was $350,000 and the lot value was $150,000). The mortgage on the purchase was $300,000. Expenses relating to the La Patera residence were as follows: Property taxes S10.750 Utilities $3,000 Insurance $2.000 CORRECTED Ccked Form 1099-MISC keep for your records) www.slom 1000MISC Department of the Maria received an additional $4,000 from clients who were not required to issue Maria a Form 1099. MISC. During the year, Maria paid the following business-related expenses: Paper $365 Toner $450 Meals $580 . Maria purchased and placed in service the following fixed assets for her business in 2019: Item New laptop computers New laser printers New computer software Date Purchased March 1 March 1 Amount $1.850 S 840 $ 400 April 2 Maria would like to recover the cost of these business assets as soon as possible through Section 179 expensing Maria owns a 2015 Acura. She started to use the Acura for her business on January 1, 2017 She drove 2.050 business miles during 2019 (she has documentation to verify). She drove the vehicle for a total of 10.000 miles during the year (7.950 personal miles). She also has access to another vehicle that she can use for personal purposes. Maria started her bookkeeping service in 2015 and she uses the cash method of accounting. She is the only person performing services in the business. She did not make any payments that would have required her to file a Form 1099, Utilities Office supplies Legal and professional fees Repairs and maintenance Total Expenses 37,425 18,900 15,550 10,000 $ 788,400 GPE purchased and placed in service the following fixed assets in 2019: Item Date Purchased Laptop computers March 1 1 Printers June 1 Office furniture October 10 Amount $20,500 $6,500 $19.000 GPE does not want to claim any Section 179 expensing on any of these assets, but would like to take bonus depreciation, if available, on all the assets. Carlos worked part-time on GPE business activities until he finished his employment with WTE early in the year. Carlos worked full-time on GPE business activities for the rest of the year. GPE filed Forms 1099 for payments made to contractors when required to do so. His business is not a specified service business for purposes of the Qualified Business Income Deduction Carlos and Maria paid $22.000 for health insurance for his family (for the time he was working at GPE). This amount is not included in the GPE expenses listed above. Neither Carlos nor Maria had access to employer-provided health insurance during the year while they were paying the premiums for this policy The entire Gomez family was covered by minimum essential health insurance during each month in 2019, /blackboard/execute/content/file?cmd=view&content_id=_3157815_1&course_id =_73059_1 Only adds and ZIP code employers data to number Support 17 com as W-2: Copy 1 -For State, City, or Loch Tax Departmen Wage and Tax stament Form 2019 Carlos reported the following information for GPE's business activities (GPE uses the cash method of accounting): Revenues: Credit card receipts $352,000 Cash receipts 648,000 Total revenue $1.000.000 Expenses: Advertising $5,450 Insurance-professional 15,750 Office building rent 62.000 Equipment leases 6,050 Travel 14.200 Meals and entertainment 2.980 498,725 Taxes and licenses 44.875 Employee health insurance 42.000 14.500 Employee benefit programs Wages . Start preparing a new tax return for 2019 using the information provided below: Tax Case Information: Carlos (birthdate 12/13/1972) and Maria (Birthdate 6/12/1979) Gomez live in Lubbock, Texas. The Gomezes have two children: Luis (age 14) and Amanda (age 12). Both children qualify as federal income tax dependents of Carlos and Maria The Gomezes provided the following information: Luis's social security number is 589-24-8432 Amanda's social security number is 599-74-8733 The Gomez's current mailing address is 543 West La Patera, Lubbock, Texas 79401 Carlos is a civil engineer. For the first two months of the year, he was employed by West Texas Engineering (WTE). However, he resigned his position witly WTE to start his own engineering firm called Gomez Professional Engineers (GPE). GPE is conducted as a sole proprietorship with Carlos being the sole owner. GPE started business on January 1, 2019 and is located at 1515 West Industrial Road Lubbock, Texas 79401 (EIN 20-1616167). Maria is self-employed as a part-time bookkeeper. Carlos provided the following W-2 from WTE. OMAN 400 254.49 3534 99-9999999 25,650 4,500 25,650 1.590 West Texas Engineering 7602 Buena Vista Blvd Lubbock, TX 79401 25,650 Carlos Gomez bedeute/content/?cmd view.content d 3157815 1 coursed 71059 Support The Gomezes did not own, control, or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year. The Gomezes paid the following expenses during the year (in addition to the personal residence-related items listed above): Dentist (unreimbursed by insurance) $ 500 Doctors (unreimbursed by insurance) $1.750 Prescriptions (unreimbursed by insurance) $ 425 Personal behicle property tax based upon value $ 1,950 Contribution to qualified charities $9,500 The Gomezes did not pay any state income taxes during the year. Other Information The Gomezes made timely federal estimated tax payments for 2019 as follows: April 15, 2019 $7.000 June 15, 2019 $7,000 September 15, 2019 $7.000 January 15, 2019 $7.000 The Gomezes want to contribute to the Presidential Election Campaign Fund. The Gomezes would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. whedu/webapp/blackboard/execute/content/file/cmd=view&content id= 3157815_18.course_jd = 73059,1 Support Qurces Maria owns 20 acres of vacant ground within the city limits of Lubbock. Maria acquired the land as a gift from her parents on July 1, 2011. The land was valued at $4,000 per acre on the date of the gift. Her parents purchased the land in 1995 at a price of $500 per acre. Maria has held this land as an investment since she received it. On September 15, 2019 Maria exchanged this land with a development company that plans to develop the 20 acres (Maria and the development company are not related parties). In exchange for the 20 acres, Maria received a condominium in Lubbock that was valued at $160,000. The building was valued at $120,000 and the land was valued at $40,000. The condominium is located at 990 El Mar, Unit A, Lubbock Texas 79401. Maria first rented out the El Mar unit on October 1, 2019. The revenue and expenses from the rental unit from October through December are as follows: Rental revenue $3,600 HOA fee expense $300 Property taxes paid $225 Utilities expense $350 No Form(s) 1099 were required to be filed for this rental. Maria is not considered an active participant and the rental activity does not produce Qualified Business Income. ont The Gomezes also received the following Forms 1099 for the year: CORRECTED (checked PAVLITIR 2019 Interest Income 1099-INT 21 Grand Junction City authent o search 543 West La Patera Cty of town, state of province, country, and ZP a foreign postal code the addresa deaction Support 8 Addresa dearplion of property in mat Intructional da de Lubbock, TX 79401 Number of properties sauring the 10 other mortgage reported in bone portthet a ne bote Account number on instructions Form 1098 Keep for your record www.n.govForm1098 Department of the The Maria utilized a room in the La Patera home for her bookkeeping business. The room was used exclusively on a regular basis as Maria's principal place of business. Maria wants to maximize her home office deduction related to this use. The room she uses is 200 square feet. In the summer of 2019, the Gomez family rented out the La Patera residence to another family. The la Patera residence is situated along the ninth green of the famous Lubbock Country Club (LCC). The LCC hosted the U.S. Senior Open golf tournament this year. The Gomez family rented their residence to a golfer participating in the event for $1,200 per day for 10 days (the home office remained locked and off limits to the renters, however). During this time the Gomez family went on vacation touring the west coast of the United States. The Gomez family incurred $1.500 of cleaning and other expenses associated with the 10-day rental period. Maria's business is a specified service business for purposes of the Qualified Business Income Deduction. On January 3, 2019, the Gomezes sold their prior principal residence. They purchased that residence on January 31, 2013 and had lived there full-time until they sold it this year. They originally purchased the home for $310,000. The Gomez family has never claimed any tax depreciation (nor were they allowed to) on the home. The sales price of the home was $405,000. The home is located at 45 East Entrada Trail, Lubbock Texas 79401 The Gomez family purchased (and moved into their current residence at 543 West La Patera. Lubbock. Texas 79401 in late January of 2019. The La Patera residence is 2,000 square feet. The purchase price of the residence was $500,000 (building value was $350,000 and the lot value was $150,000). The mortgage on the purchase was $300,000. Expenses relating to the La Patera residence were as follows: Property taxes S10.750 Utilities $3,000 Insurance $2.000 CORRECTED Ccked Form 1099-MISC keep for your records) www.slom 1000MISC Department of the Maria received an additional $4,000 from clients who were not required to issue Maria a Form 1099. MISC. During the year, Maria paid the following business-related expenses: Paper $365 Toner $450 Meals $580 . Maria purchased and placed in service the following fixed assets for her business in 2019: Item New laptop computers New laser printers New computer software Date Purchased March 1 March 1 Amount $1.850 S 840 $ 400 April 2 Maria would like to recover the cost of these business assets as soon as possible through Section 179 expensing Maria owns a 2015 Acura. She started to use the Acura for her business on January 1, 2017 She drove 2.050 business miles during 2019 (she has documentation to verify). She drove the vehicle for a total of 10.000 miles during the year (7.950 personal miles). She also has access to another vehicle that she can use for personal purposes. Maria started her bookkeeping service in 2015 and she uses the cash method of accounting. She is the only person performing services in the business. She did not make any payments that would have required her to file a Form 1099, Utilities Office supplies Legal and professional fees Repairs and maintenance Total Expenses 37,425 18,900 15,550 10,000 $ 788,400 GPE purchased and placed in service the following fixed assets in 2019: Item Date Purchased Laptop computers March 1 1 Printers June 1 Office furniture October 10 Amount $20,500 $6,500 $19.000 GPE does not want to claim any Section 179 expensing on any of these assets, but would like to take bonus depreciation, if available, on all the assets. Carlos worked part-time on GPE business activities until he finished his employment with WTE early in the year. Carlos worked full-time on GPE business activities for the rest of the year. GPE filed Forms 1099 for payments made to contractors when required to do so. His business is not a specified service business for purposes of the Qualified Business Income Deduction Carlos and Maria paid $22.000 for health insurance for his family (for the time he was working at GPE). This amount is not included in the GPE expenses listed above. Neither Carlos nor Maria had access to employer-provided health insurance during the year while they were paying the premiums for this policy The entire Gomez family was covered by minimum essential health insurance during each month in 2019, /blackboard/execute/content/file?cmd=view&content_id=_3157815_1&course_id =_73059_1 Only adds and ZIP code employers data to number Support 17 com as W-2: Copy 1 -For State, City, or Loch Tax Departmen Wage and Tax stament Form 2019 Carlos reported the following information for GPE's business activities (GPE uses the cash method of accounting): Revenues: Credit card receipts $352,000 Cash receipts 648,000 Total revenue $1.000.000 Expenses: Advertising $5,450 Insurance-professional 15,750 Office building rent 62.000 Equipment leases 6,050 Travel 14.200 Meals and entertainment 2.980 498,725 Taxes and licenses 44.875 Employee health insurance 42.000 14.500 Employee benefit programs Wages . Start preparing a new tax return for 2019 using the information provided below: Tax Case Information: Carlos (birthdate 12/13/1972) and Maria (Birthdate 6/12/1979) Gomez live in Lubbock, Texas. The Gomezes have two children: Luis (age 14) and Amanda (age 12). Both children qualify as federal income tax dependents of Carlos and Maria The Gomezes provided the following information: Luis's social security number is 589-24-8432 Amanda's social security number is 599-74-8733 The Gomez's current mailing address is 543 West La Patera, Lubbock, Texas 79401 Carlos is a civil engineer. For the first two months of the year, he was employed by West Texas Engineering (WTE). However, he resigned his position witly WTE to start his own engineering firm called Gomez Professional Engineers (GPE). GPE is conducted as a sole proprietorship with Carlos being the sole owner. GPE started business on January 1, 2019 and is located at 1515 West Industrial Road Lubbock, Texas 79401 (EIN 20-1616167). Maria is self-employed as a part-time bookkeeper. Carlos provided the following W-2 from WTE. OMAN 400 254.49 3534 99-9999999 25,650 4,500 25,650 1.590 West Texas Engineering 7602 Buena Vista Blvd Lubbock, TX 79401 25,650 Carlos Gomez