Complete John and Ellens joint income tax return for 2018. The forms to be completed are Form 1040, Schedules 1 through 5, Schedule A (even if they do not iteamize) B,C,D, and SE, and Forms 4562 and 4797

Check Figures:

Form 1040, line 7- 176,318

Form 1040 line 10- 136,522

Schedule C, line 28- 60,022

Form 4562, line 22- 16122

Tax Return Project The tax return project assigned for this course is the John and Ellen Brite problem which is attached. Required: 1. Complete John and Ellen's joint income tax return for 2018. The forms to be completed are Form 1040, Schedules 1 through 5, Schedules A (even if they do not itemize), B, C, D, and SE and Forms 4562 and 4797. a. You must complete this assignment manually using the tax forms provided. b. Place the tax forms in the PROPER ORDER according to the Attachment Sequence Numbers found in the upper-right corner of each form. There will be a 5-point penalty imposed if any form is out of order. c. Staple your project in the upper-left corner. Write your name on the BACK of the last page of your return in the upper-RIGHT corner. d. 2. Round off all calculations to the nearest dollar. John and Ellen Brite, ages 47 and 45, are married and live at 584 Thoreau Drive, Boston, MA 59483. llen's social security number is 111-11-1111, and John's is 222-22-2222. They have two children: Emma, age 23, and Chet, age 19. Their social security numbers are 333-33-3333 and 444-44-4444 1. respectivel Y. Emma is a single college student and earned $8,000 during the summer. John and Ellen help Emma through school by paying for her room, board, and tuition. Emma lives at home during the summer. Chet has a physical handicap and lives at home. He attends a local university and earned $4,000 while working for a marketing firm. In sum John and Ellen provided more than 50% of both Emma's and Chet's total support for the year John owns an unincorporated specialty electrical lighting retail store, Brite-On. The business is located at 123 Main St., Boston, MA, and its Employer ID is 12-3456789. following assets on January 1, 2018: 2. Bright-On had the Cost 100,000 $30,000 $5 per bulb Assets Old store building purchased April 1, 200 Equipment (7-year property) purchased January 10, 2013 Inventory valued using FIFO method: 4,000 light bulbs Bright-On purchased a competitor's store on March 1, 2018 for $107,000. The purchase price included the following: 3. New store building Land Equipment (5-year property) Inventory: 3,000 light bulbs $60,000 (FMV $18,000 (FMv $11,000 (FMV) $6 per bulb (cost) 4. Bright-On elected Sec. 179 expensing on the Equipment purchased from the competitor this year. On June 30, 2018, Brite-On sold the 7-year property equipment for $12,000. When this equipment was purchased in 2013, the Brites elected out of bonus depreciation and did not elect Sec. 179 expensing 5. Brite-On leased a car for $500 per month beginning on January 1, 2018. The car is used 100% for business and was driven 14,000 during the year. 6. 7. Brite-On sold 8,000 light bulbs at a price of $15 each during the year. Also, Brite-On purchased an additional 4,000 light bulbs in August 2018 at a cost of $7 per bullb 8. Brite-On had the following revenues (in addition to the sales of light bulbs) and additional ex Service revenues Interest expense on business loans Auto expenses (gas, oil, etc.) Taxes and licenses Utilities Salaries $64,000 4,000 3,800 3,300 2,800 24,000 . Ellen is a commercial pilot for a small airline. Her salary is $95,000, from which $19,000 of federal income tax and $8,000 of state income tax were withheld. 10. John's father passed away during the year. John and Ellen received $100,000 from the life insurance policy. Neither John nor Ellen paid any of the premiums on the policy. 11. Ellen purchased 100 shares of Thurston Co. stock on May 1, 2010 for $1,000. Thurston Co. was declared bankrupt during the current year. 12. John and Ellen also had the following personal expenses: Medical bills Real property taxes State income taxes Home mortgage interest Charitable contributions (cash)600 54,500 3,800 4,000 5,000 13. The Brites received interest income on a bank savings account of $275. They also received $2,000 of qualified dividends from their Microsoft stock. 14. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume that John spent 100% of his time at the store while Ellen spent no time at the store REQUIRED Complete John and Ellen's joint income tax return for 2018. The forms to be completed are Form 1040, Schedules 1 through 5, Schedules A (even if they do not itemize), 8, C, D, and SE, and Forms 4562 and 4797 Prepare the tax return in pencil on the forms provided and turn in your working copy (make sure it is legible). Please do not attempt to recopy your return to make it neater - it is very easy to copy numbers to the wrong line and lose points. . Tax Return Project The tax return project assigned for this course is the John and Ellen Brite problem which is attached. Required: 1. Complete John and Ellen's joint income tax return for 2018. The forms to be completed are Form 1040, Schedules 1 through 5, Schedules A (even if they do not itemize), B, C, D, and SE and Forms 4562 and 4797. a. You must complete this assignment manually using the tax forms provided. b. Place the tax forms in the PROPER ORDER according to the Attachment Sequence Numbers found in the upper-right corner of each form. There will be a 5-point penalty imposed if any form is out of order. c. Staple your project in the upper-left corner. Write your name on the BACK of the last page of your return in the upper-RIGHT corner. d. 2. Round off all calculations to the nearest dollar. John and Ellen Brite, ages 47 and 45, are married and live at 584 Thoreau Drive, Boston, MA 59483. llen's social security number is 111-11-1111, and John's is 222-22-2222. They have two children: Emma, age 23, and Chet, age 19. Their social security numbers are 333-33-3333 and 444-44-4444 1. respectivel Y. Emma is a single college student and earned $8,000 during the summer. John and Ellen help Emma through school by paying for her room, board, and tuition. Emma lives at home during the summer. Chet has a physical handicap and lives at home. He attends a local university and earned $4,000 while working for a marketing firm. In sum John and Ellen provided more than 50% of both Emma's and Chet's total support for the year John owns an unincorporated specialty electrical lighting retail store, Brite-On. The business is located at 123 Main St., Boston, MA, and its Employer ID is 12-3456789. following assets on January 1, 2018: 2. Bright-On had the Cost 100,000 $30,000 $5 per bulb Assets Old store building purchased April 1, 200 Equipment (7-year property) purchased January 10, 2013 Inventory valued using FIFO method: 4,000 light bulbs Bright-On purchased a competitor's store on March 1, 2018 for $107,000. The purchase price included the following: 3. New store building Land Equipment (5-year property) Inventory: 3,000 light bulbs $60,000 (FMV $18,000 (FMv $11,000 (FMV) $6 per bulb (cost) 4. Bright-On elected Sec. 179 expensing on the Equipment purchased from the competitor this year. On June 30, 2018, Brite-On sold the 7-year property equipment for $12,000. When this equipment was purchased in 2013, the Brites elected out of bonus depreciation and did not elect Sec. 179 expensing 5. Brite-On leased a car for $500 per month beginning on January 1, 2018. The car is used 100% for business and was driven 14,000 during the year. 6. 7. Brite-On sold 8,000 light bulbs at a price of $15 each during the year. Also, Brite-On purchased an additional 4,000 light bulbs in August 2018 at a cost of $7 per bullb 8. Brite-On had the following revenues (in addition to the sales of light bulbs) and additional ex Service revenues Interest expense on business loans Auto expenses (gas, oil, etc.) Taxes and licenses Utilities Salaries $64,000 4,000 3,800 3,300 2,800 24,000 . Ellen is a commercial pilot for a small airline. Her salary is $95,000, from which $19,000 of federal income tax and $8,000 of state income tax were withheld. 10. John's father passed away during the year. John and Ellen received $100,000 from the life insurance policy. Neither John nor Ellen paid any of the premiums on the policy. 11. Ellen purchased 100 shares of Thurston Co. stock on May 1, 2010 for $1,000. Thurston Co. was declared bankrupt during the current year. 12. John and Ellen also had the following personal expenses: Medical bills Real property taxes State income taxes Home mortgage interest Charitable contributions (cash)600 54,500 3,800 4,000 5,000 13. The Brites received interest income on a bank savings account of $275. They also received $2,000 of qualified dividends from their Microsoft stock. 14. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume that John spent 100% of his time at the store while Ellen spent no time at the store REQUIRED Complete John and Ellen's joint income tax return for 2018. The forms to be completed are Form 1040, Schedules 1 through 5, Schedules A (even if they do not itemize), 8, C, D, and SE, and Forms 4562 and 4797 Prepare the tax return in pencil on the forms provided and turn in your working copy (make sure it is legible). Please do not attempt to recopy your return to make it neater - it is very easy to copy numbers to the wrong line and lose points