Complete Kiara and Brock's Form 1040 for tax year 2019, Schedules A,B, D, and E, Form 8283 and Form 8949. disregard the alternative minimum tax and any credits.

Tax Return 3: Kiara and Brock Smith Kiara and Brock Smith are married and file a joint return. Kiara's Social Security number is 500-50-1177 and her birth date is 7/10/1980. Brock's social security number is 101-05-2255 and his birth date is 7/12/1979. Kiara and Brock have one son, Henry, born 2/24/2015. His Social Security number is 011-22-3526. They live at 356 Wisteria Lane, Woodbury, WA 84653. They report their income on the cash method. During 2019, they report the following items: Interest income from money market accounts $500 Dividend income from Davis Corp. stock $750 Cash contributions to church $7,000 Rental of a condominium in Lutsen: Rental income $15,750 Interest expense $7,000 Property taxes $3,200 Maintenance $1,000 Insurance $950 Depreciation for the year $8,000 (Enter the asset with purchase date 12/1/2018 and purchase price $220,000. You may need to override the depreciation amount.) Days of personal use o The address of the Condo is 5246 Skyline Drive, Lutsen, WA 84666. Forms Forms Kiara W2 Form 1098 Nick is not employed During the year the following events also occur: 1. In 2018, Brock had loaned a friend $3,000 to help pay medical bills. During 2019, he discovers that his "friend" has skipped town. 2. On June 20, 2019, Brock sells Kim Corporation stock for $16,000. He purchased the stock on December 12, 2011 for $22,000. 3. 4. Nick had gambling losses in the amount of $5,000. 5. Instead of accepting $60 the utility store offers for their old dishwasher, they donate it to Goodwill on November 21, 2019. They purchased the dishwasher for $750 on March 30, 2007. The new dishwasher cost $900. 6. Kiara and Brock purchased a new residence for $250,000. As part of the closing costs, they pay two points, or $3,800, on the mortgage, which is interest rather than loan processing fees. This payment enables them to obtain a more favorable interest rate for the term of the loan. They also paid $8,400 in interest on their mortgage on their personal residence. 7. They pay $5,100 in property taxes on their residence. 8. Cash contributions to the local charity $20,000. Complete Kiara and Brock's Form 1040 for tax year 2019, Schedules A, B, D, and E, Form 8283 and Form 8949 For purposes of this problem, disregard the alternative minimum tax and any credits. 2019 form W-2 a Employee's social security number OMB No. xStandard W-2 (Typed or computer generated) 1545-0008 500-50-1177 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-0291542 103,000.00 9,933.04 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Memory Lane Corp 103,000.00 6,386.12 Employer's address 1212 W Washington 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city 103,000.00 1,493.44 Woodbury State WA ZIP code 84653 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits 0.00 Foreign postal code Foreign province/county 11 Nonqualified plans TZlode Amount 0.00 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan Kiara 0.00 Employee's last namo Suff Third-party sick pay 0.00 Smith OO 0.00 14 See expanded section below. 0.00 State ZIP code | Employee's address 356 Wisteria Lane Employee's city Woodbury Employee's foreign country Foreign province county WA 84653 0.00 0.00 Foreign postal code 15 State State ID No. WA 86-291542 16 State wagos 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 103,000.00 7,500.00 0.00 0.09 Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 500-50-4177 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country property may apply. Also 2019 *Caution: The amount shown may not be fully deductible by you. Limits based on the loan OMB No.1545-0901 amount and the cost and Mortgage value of the secured Interest interest to the extent it Statement was incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)/borrow er(s)* 8,400 2 Outstanding mortgage principal as of 1/1/2019 0. 3 Mortgage origination date Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number Payer's/Borrower's name Kiara Smith Street address (including apt. no.) 356 Wistera Lane City or town State Woodbury WA Foreign country ZIP code 84653 4 Refund of overpaid interest (see instructions on whether to report as Other Income on Form 1040.) 0. 5 Mortgage Insurance premiums 0. 6 Points paid on purchase of principal residence 3,800. 7 If address of property securing mortgage is the same as PAYERS/BORROWERS address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (soe Instructions) Foreign province county Foreign postal code Account number 9 Number of properties securing the mortgage 10 Other City or town State ZIP code Description of the property Tax Return 3: Kiara and Brock Smith Kiara and Brock Smith are married and file a joint return. Kiara's Social Security number is 500-50-1177 and her birth date is 7/10/1980. Brock's social security number is 101-05-2255 and his birth date is 7/12/1979. Kiara and Brock have one son, Henry, born 2/24/2015. His Social Security number is 011-22-3526. They live at 356 Wisteria Lane, Woodbury, WA 84653. They report their income on the cash method. During 2019, they report the following items: Interest income from money market accounts $500 Dividend income from Davis Corp. stock $750 Cash contributions to church $7,000 Rental of a condominium in Lutsen: Rental income $15,750 Interest expense $7,000 Property taxes $3,200 Maintenance $1,000 Insurance $950 Depreciation for the year $8,000 (Enter the asset with purchase date 12/1/2018 and purchase price $220,000. You may need to override the depreciation amount.) Days of personal use o The address of the Condo is 5246 Skyline Drive, Lutsen, WA 84666. Forms Forms Kiara W2 Form 1098 Nick is not employed During the year the following events also occur: 1. In 2018, Brock had loaned a friend $3,000 to help pay medical bills. During 2019, he discovers that his "friend" has skipped town. 2. On June 20, 2019, Brock sells Kim Corporation stock for $16,000. He purchased the stock on December 12, 2011 for $22,000. 3. 4. Nick had gambling losses in the amount of $5,000. 5. Instead of accepting $60 the utility store offers for their old dishwasher, they donate it to Goodwill on November 21, 2019. They purchased the dishwasher for $750 on March 30, 2007. The new dishwasher cost $900. 6. Kiara and Brock purchased a new residence for $250,000. As part of the closing costs, they pay two points, or $3,800, on the mortgage, which is interest rather than loan processing fees. This payment enables them to obtain a more favorable interest rate for the term of the loan. They also paid $8,400 in interest on their mortgage on their personal residence. 7. They pay $5,100 in property taxes on their residence. 8. Cash contributions to the local charity $20,000. Complete Kiara and Brock's Form 1040 for tax year 2019, Schedules A, B, D, and E, Form 8283 and Form 8949 For purposes of this problem, disregard the alternative minimum tax and any credits. 2019 form W-2 a Employee's social security number OMB No. xStandard W-2 (Typed or computer generated) 1545-0008 500-50-1177 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-0291542 103,000.00 9,933.04 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Memory Lane Corp 103,000.00 6,386.12 Employer's address 1212 W Washington 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city 103,000.00 1,493.44 Woodbury State WA ZIP code 84653 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits 0.00 Foreign postal code Foreign province/county 11 Nonqualified plans TZlode Amount 0.00 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan Kiara 0.00 Employee's last namo Suff Third-party sick pay 0.00 Smith OO 0.00 14 See expanded section below. 0.00 State ZIP code | Employee's address 356 Wisteria Lane Employee's city Woodbury Employee's foreign country Foreign province county WA 84653 0.00 0.00 Foreign postal code 15 State State ID No. WA 86-291542 16 State wagos 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 103,000.00 7,500.00 0.00 0.09 Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 500-50-4177 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country property may apply. Also 2019 *Caution: The amount shown may not be fully deductible by you. Limits based on the loan OMB No.1545-0901 amount and the cost and Mortgage value of the secured Interest interest to the extent it Statement was incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)/borrow er(s)* 8,400 2 Outstanding mortgage principal as of 1/1/2019 0. 3 Mortgage origination date Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number Payer's/Borrower's name Kiara Smith Street address (including apt. no.) 356 Wistera Lane City or town State Woodbury WA Foreign country ZIP code 84653 4 Refund of overpaid interest (see instructions on whether to report as Other Income on Form 1040.) 0. 5 Mortgage Insurance premiums 0. 6 Points paid on purchase of principal residence 3,800. 7 If address of property securing mortgage is the same as PAYERS/BORROWERS address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (soe Instructions) Foreign province county Foreign postal code Account number 9 Number of properties securing the mortgage 10 Other City or town State ZIP code Description of the property