Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Carlos and Maria Gomez live in Thibodaux, LA. The Gomezes have two children: Luis (age 14) and Amanda (age 12). Both children qualify as federal

image text in transcribed
image text in transcribed
Carlos and Maria Gomez live in Thibodaux, LA. 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 .Carlos's social security number is 234-78-4321 Maria's social security number is 432-34-5468 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 1234 Canal Blvd, Thibodaux, LA 70301 Carlos start his own engineering firm called Gomez Professional Engineers (GPE) January 1, 2018. GPE is conducted as a sole proprietorship with Carlos being the sole owner. GPE is located at 1515 Canal Blvd Thibodaux, LA 70301 (EIN 20-1616167). Maria is a seventh grade English teacher at the local middle school. The following was reported on Maria's Form W-2: Federal Income Tax Withholding 8,000 Employer Gross Wages State Income Tax Withholding 3,750 Local Middle School 55,000 All applicable and appropriate payrol taxes were withheld by the employer Carlos reported the following information for GPE's business activities (GPE uses the cash method of accounting) Revenues Credit card receipts Cash receipts $352,000 648,000 1,000,000 Total revenue Expenses: Advertising Insurance-professional Office building rent Equipment leases Travel Meals Entertainment Wages Taxes and licenses Employee health insurance Employee benefit programs $5,450 15,750 62,000 6,050 14,200 2,975 4,000 498,725 44,875 42,000 14,500 Utilities Office supplies Legal and professional fees Repairs and maintenance 37,425 18,900 15,550 10,000 788,400 Total Expenses GPE purchased and placed in service the following fixed assets in 2016 Date Purchased March 1 June 1 September 10 Amount $20,500 $6,500 19,000 Item Laptop computers Printers Office furniture GPE does not want to claim any bonus depreciation or Section 179 expensing on any of these assets ther Information The Gomezes have the total net capital loss of $6,000 in 2018 Assuming Gomezes' total itemized deduction is $27,000 in 2018 and assume they don't have any other income or expenses and no contribution to retirement account. And assuming they are not qualified for any other credits other than child tax credits. The entire family is covered under health insurance through Maria's job The Gomezes made timely federal estimated tax payments for 2018 as follows April 15, 2018 June 15, 2018 September 15, 2018 January 15, 2019 11,000 11,000 11,000 11,000 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 Note: Please follow 2018 new tax rules and use 2017 version of tax forms to finish the project. Use 2018 updated tax rates and standard deduction amount for the calculation. You may need to manually change line 42 as Qualified Business Deduction. You are expected to complete form 1140, schedule C, SE and form 4562

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago