Bob and Carol Fish are married and file a joint tax return. Bob (2/19/1959) is currently self-employed as a fish equipment supplier and Carol (3/1/1960) is employed by SC Company as a marketing executive. They have two children, Don and Dominique. They currently live in Sun Prairie, WI, in a home they had built in May of 2015. Their address is 608 Boat Street, Sun Prairie, WI, 55555. Don (111-11-1115) was born on 2/1/1998 and Dominique (111-11-1116) was born on 3/3/2001.

The Fish's had the following information from their records for 2019:

Bob 111-11-1112

Federal tax paid (estimates paid in 4 equal installments of $1,500) $6,000

State tax paid for 2019 (estimates paid in 4 equal 4,200

installments of $1,050 last paid on 1/15/20)

State tax estimate paid for 2018 (paid on 1/15/19) 1,000

Carol Fish 111-11-1113

Wages (box 1) $119,000

Federal tax withheld (box 2) 21,000

Social security wages (box 3) 119,000

Social Security tax withheld (box 4) 7,378

Medicare wages (box 5) 119,000

Medicare tax withheld (box 6) 1,726

State income tax withheld (box 17) 6,250

The Fish's received 1099 INTs with the following interest income:

US Treasury bill (box 3) $2,480

Bank of Monroe (box 1) 4,900

Bob and Carol received 1099 DIVs from the following sources:

Vanguard Mutual Fund (box 2a) $1,850

IBM (box 1 and 1a) 2,100

Janus Mutual Fund (box 2a) 680

The IBM dividends are considered ordinary dividends (all qualified) while the Janus Mutual

Fund and Vanguard dividends were considered capital gain distributions.

Carol and Bob reported the following stock transactions for 2019 and did receive a 1099B for each:

Sold 750 shares of IBM for $118 per share on July 3, 2019. Carol had received the stock as a gift from her grandmother. The stock had cost Grandma $85 per share and had a fair market value of $126 per share on the date of gift. Grandma had bought the stock on June 1, 1999.

Carol also sold 910 shares of the General Motors stock for $32 per share. She had inherited this stock from an uncle who had bought it December 31, 1993, for $26 per share. It had a fair market value of $27 per share at the time of her uncle's death. Carol sold this on December 31, 2019.

Bob sold the Janus Mutual Fund for $10,000 on September 1, 2019. It had cost him $15,000 when he purchased it in 2017 (6/30/17).

Other:

Carol also received $250,000 from an insurance policy due to the death of her uncle and Bob won $5,000 at a casino in 2019.

The family has health insurance through a plan offered by Carols employer and all are covered.

Bob has summarized the following information from his 2019 records:

Doctor bills 867

Real estate taxes paid:

Residence 5,380

Interest paid: (1099 INT)

* Sun Prairie residence 12,700

Investment interest 7,450

Credit cards 454

Cash contributions to church 4,870

Long-term property to church (cost $1,000) FMV 1,455

Unreimbursed business expenses (Carol)-travel 3,900

Investment expenses 1,020

Gambling losses 4,655

* The interest from the Sun Prairie residence was based on a $400,000 acquisition debt.

Bob's business, "One Way Fishing Supplies" had the following data in 2019:

Revenues $88,000

Possible expenses:

Beginning inventory 14,000

Ending inventory 16,200

Purchases 31,000

Advertising 1,600

Legal 2,100

Office supplies 1,234

Rent 8,400

Taxes & licenses 3,600

Utilities 2,400

Truck expenses (gas, repairs, etc- excluding depreciation) 7,680

In addition, Bob bought a new lure tying machine that cost him $12,345. The machine is 7-year property, however, Bob would like the lowest possible net income from his business for 2019 so hopes you have an idea of how to help with that. He purchased this on July 5, 2019. In addition to the lure tying machine, Bob bought on January 15, 2019, a computer that he used 45% of the time for business in 2019. The computer cost him $3,150. The truck Bob has is a heavy duty (7,500 lbs) truck, it cost him $43,000 and was placed in service in 2018. He uses it 100% for business and used the actual cost method in 2018 which he also plans on using in 2019. (He used the 100% bonus depreciation on this in 2018). Bob's tax ID number is 41-2222222. His address is 609 Boat Street. Bob put 25,000 business miles on the truck and 0 personal miles.

Don was a sophomore in college for the third year in a row but assured them he will be a junior next year. This is also his 3rd college and his friends have taken to calling him New Guy. Dominique was a freshman in college. They love them both but it is becoming clear that Dominique is their hope for success. She is really into ping pong and training hard for the Olympics. She is constantly playing against their neighbor, an old guy who is a little scary but runs Sleets Ping Pong Parlor which trains elite ping pong players. Bob and Carol paid $9,000 in 2019 for tuition for Don while Dominique is on an athletic tuition scholarship that was valued at $7,000 for the fall semester which is her first semester in college. Don is still eligible for the American Opportunity Tax Credit as this was his 4th year.

Based on the information listed above, prepare the 2019 Federal tax return for the Fish family.

Use all forms necessary and show all work. Submit on Canvas the return like we have done after saving it to a PDF and submit any work that you feel would be helpful for me to see