Can you help me prepare a 2018 individual income tax return for Tom and April Baker. Use 2017 forms. The forms can be obtained from the IRS website at www.irs.gov. At a minimum, the project must include the following forms and schedules: 1040, A, B, C, D, SE, 4684, 4562, 8283, and 8949. Staple all pages together in the proper order and put your name on the top of the first page. The forms must either be handwritten in blue ink or printed in black ink.

The taxpayers Tom Baker (your UNO id number, add 00) and April Baker (social security number 224-11-5678) are married and elect to file a joint return. They are both 45 years old, have good eyesight and no disabilities. They have two children who lived at home the entire year. Their daughter Lisa Baker (social security number 244-33-4455), is 20 years old and attended college on a full scholarship during 2018. Their son Jason Baker (social security number 222-44-5566), is 15 years old and still in high school. They live at 1205 Broadway Street, New Orleans, LA 70118.

• Tom and April provide 100% of the support for Tom's mother, Sally Baker (211-22-

3333). Sally lives in an assisted living facility. She spends every other weekend with her

son's family.

April is a teacher at a local school. Her 2018 W-2 reported the following information.

Wages48,000

Federal income tax withheld4,000

State income tax withheld1,200

• Tom and April have the following investment income for 2018:

Chase Bank (1099-INT)$1,500 interest

Ameritrade (1099-DIV)$3,000 dividends (qualified)

New Orleans municipal bonds$1,000 interest

• Tom and April had the following stock transaction during 2018. They received a

Form 1099-B from their stock sales.

DateSharesSelling PriceBasis.

3/10Sold 400 shares TNT$25/sharePaid $20/share for 300 shares on 2/10/2016.

There was a 2 for 1 stock split on 10/6/2017.

5/25Sold 200 shares ABC$20/sharePaid $25/share for 400 shares on 4/8/2016.

10/15Sold 100 shares PAP$35/sharePaid $10/share for 100 shares on 3/20/2018.

• April received $200,000 of life insurance proceeds when her father passed away during the year.

Schedule C

Tom is self-employed. He operates Quiet Reads, a bookstore and coffee shop selling books at retail, as a single member LLC and elects to be taxed as a disregarded entity. The business is located at 715 Oak Street, New Orleans, LA 70118. In order to clearly show business income, he maintains an inventory at cost and he uses the accrual method of accounting for his sales and purchases. Total gross receipts of the business were $385,000 and returns and allowances amounted to $3,500.

The business books show'ed the following information:

Inventory at beginning of the year (valued at cost)............. $45,000

Merchandise purchased.............................................140,000

Inventory at year end................................................. 32,000

Rent Expense........................................................... 14,400

Repairs.......................................................................700

Taxes.....................................................................6,100

Employee wages...................................................... 56,000

Insurance.................................................................2,200

Utilities and telephone.................................................4,900

Advertising.............................................................. ..800

Legal and accounting...................................................2,100

Office expense............................................................680

Travel.......................................................................400

Meals.......................................................................500

• Quiet Reads operated a truck. The truck was used 100% for business purposes and was driven 8,000 miles in 2018. Tom elects to use the standard mileage rate.

• The company purchased computers and office equipment in 2017 totaling $9,000. The company did not elect 179 or bonus depreciation in 2017.

• The company purchased $42,000 of furniture for business use on March 10, 2018. An election is made to expense the acquisition cost under Section 179. The furniture has a 7 year life and Tom wants to maximize the current year deduction.

• Tom paid $6,000 in premiums for health insurance coverage for himself and his family.

• Tom made total federal estimated tax payments of $16,000 for tax year 2018 and state estimated tax payments of ($3,000) $1,000 per quarter for the first three quarters during 2018.

• Tom and April had the following personal expenses for the year:

• Medical Expenses:

Prescription drugs unreimbursed2,400

Doctor's bills unreimbursed3,500

Insurance premiums for Tom's mother4,600

Wheelchair ramp for Tom's mother6,000

(home value increased $2,000)

• Home mortgage interest8,500

• Real estate taxes5,200

• Cash donations:

First Methodist Church1,300

Red Cross200

UNO 1,000

American Cancer Society400

The Baker's donated 100 shares of SUV company stock to St. Jude's Children's Hospital on

May 12, 2018. The stock had a basis of $15 per share and a FMV of $25 per share. The stock

was purchased in 2014. SUV is publicly traded.

• The Baker's home was damaged during a hurricane on August 17, 2018. The hurricane was a federally declared disaster. The adjusted basis of the home was $325,000. The FMV before the fire was $350,000 and the FMV after the fire was $230,000. The insurance reimbursement was $100,000.