Complete Schedule A and B tax forms.

Client Facts: Nick M. Viall and Rachel A. Lindsay, husband and wife, file a joint return. They live at 113 Bachelor Way, Austin, TX. 42871. Nick's Social Security number is 234-56-7809, and Rachel's is 987-56-4321. Nick was born on November 12, 1956, and Rachel was born on September 25, 1962. Nick and Rachel file a joint tax return. Nick retired from ABC Medical, and Rachel works part-time as an accountant. Nick and Rachel had the following gross income for 2018: Rachel earned a salary of $40,000 working part-time as a tax-accountant during busy season. Interest income of $22,000 from various corporate bond investments. Interest income of $10,000 from bonds issued by the city of Austin. Other information that affects their tax return for the year is as follows: Rachel had $6,000 Federal tax withheld from her paycheck during the year and $2,500 in state income taxes withheld. The couple had other expenses that were all paid in 2018, which they told you may qualify as itemized deductions: Property taxes on their home - $7,750 > Mortgage interest - $18,000 (acquisition indebtedness; balance of $450,000 at the end of the year) Charitable contribution (cash) -$3,000 (to Trump Foundation, a qualified organization) They will deduct state income taxes paid during the year, rather than sales taxes paid during the year. In 2018, Nick started provided medical consulting services as a sole proprietor and had the following income and expenses from his consulting business: Consulting fees received - $55,000 Liability insurance premiums paid - $1,000 Office supplies - $400 Meals with clients all reasonable in amount) - $1,500 He will use the cash method of accounting for tax purposes. Nick drove his personal automobile to/from meeting clients, for a total of 2,200 miles in 2018. He used the same vehicle for personal purposes, but did not drive his wife's car at all. Nick verified that he has kept thorough written records to support the deduction for his business transportation. (Note that you will have to look up the mileage rate for 2018.) Nick made an investment in an ultrasound machine, which he will use in his consulting business. He placed this in service on October 29, 2018, and paid $25,000. The equipment has a 5-year class life. He does not want to expense any of the cost under Section 179 or take bonus depreciation on the machine, but will use MACRS to calculate his depreciation deduction in 2018. Nick took a business trip to a client's office during the year. He had no personal days on this trip. The expenses of the trip were: Airfare - $425 > Lodging - $1,200 Parking at the airport - $65 Taxi from the airport to the hotel - $30 Meals while traveling - $410 Based on the advice of a friend, Nick made quarterly estimated tax payments (Federal tax) in anticipation of the tax he would owe on his consulting income in 2018, totaling $20,000. The couple had the following transactions involving their investment assets during 2018: > Sold 500 shares of Urban Enterprises on 2/14/2018 for $185,000. (Stock was inherited from Nick's father, who died on November 28, 2017. The FMV of the stock on that date was $172,000; Nick's father had purchased the stock for $100,000.) Sold 100 shares of Harbaugh Inc. stock on 5/1/2018 for $25,000. (Stock was purchased on 1/2/2017 for $32,500.) Sold 300 shares of Buckeye Corp. stock on 11/1/2018 for $100,000. (Stock was purchased on 11/1/2017 for $112,000). All of these transactions were reported to them on form 1099-B from their investment company, and the basis was reported to the IRS for all of these transactions. OM 1545-ON SCHEDULE A Itemized Deductions (Form 1040) Go to www.insgow Schedule for instructions and the latest Information Attach to Form 1040 Woman Serial Caution you we caming antifed disastroson Form 4684, see the instructions for line 16 who onom 1010 2018 Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses se instructions - - - - 2 Enter amount from Form 1040, line 7 2 3 Multiply line 2 by 7.5% (0.075). .. 4 Subtract line from line 1. line 3 is more than line 1. enter-O- 5 State and local taxes a State and local income taxes or general sales taxes. You may include other income taxes or general sales taxes on line 5a. but not both. If you clect to include general sales taxes instead of income taxes, check this box........ State and local real estate taxes see instructions . . . . State and local personal property taxes. . d Add lines 5a through 5c e Enter the smaler of line 5d or $10.000 ($5,000 if married filing 5a Sb 6 Other taxes. List type and amount Interest You Paid Caution You 7 Addlines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy, build, or improve your home, se instructions and check this box..... a Home mortgage interest and points reported to you on Form naruto b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see Instructions and show that person's name, identifying no., and address 8d PRE Points not reported to you on Form 1098. See instructions for special rules. d Reserved. . . . . . . Add lines a through Bc. . . . . . . . Be 9 Investment interest. Attach Form 4952 required. See Instructions. 10 Add lines Be and 9 - Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions . . . . . . 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283f over $500. - 12 13 Carryover from prior year . . . . . 13 weens 14 Add lines 11 through 13. . . Casualty and 15 Casualty and the lossies) from a federally declared disaster other than net qualified Theft Losses disaster losses. Attach Form 4684 and enter the amount from line 18 of that form. See instructions. Other 16 Other-from list in instructions. List type and amount temired Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8 - - Deductions 18 you elect to itemize deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice, we the instructions for Form 1040 Cat No 1714C Siche A Form 1040, 2018 OMON SCHEDULEB Form 1040 1040-SRO Interest and Ordinary Dividends Go to www.insgow Schedule for instructions and the latest information Attach to Form 1040 1040-SR 2019 Part I 1 List name of payer any interest is from a ser-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this Interest first. Also, show that buyer's social security number and address Interest instructions for Forms 1040 and 1040-SR line 2 Not you 9000 INT. Form 1099-OIDO received a form statement from a brokerage firm payer and are the tot interest shown on that 2 Add the amounts on line 1.. . . . . . . . . . . . . . . . 3 Excludable interest on series EE and I U.S. wavings bonds issued after 1989. Attach Form 8815. . Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR line 2b Note: If line 4 is over $1,500, you must complete Part Ill. 5 Ust name of payer Amount Part II Ordinary Dividends (See Instructions and the instructions for Forms 1040 and 1040-SR, line 302 Notes if you received a Form usu statement from a brokerage firm, at the firm's name as the dividends shown & Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR on that form line 3D . . . . Note: If line 6s over $1.500, you must complete Part II Part III You must complete this part if you al had over $1.500 of taxable interest or ordinary dividends: bhad a Yes No foreign account; or received a distribution from, or were a grantor of, or a transferorto, a foreign trust Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a francia Accounts account such as a bank account, securities account, or brokerage account located in a foreign and Trusts country? See instructions ..................... Caution "Yes." are you required to file FinCEN Form 114, Report of Foreign Bark and Financial de Accounts FBAR, to report that financial interest or signature authority See FinCEN Form 114 to FCEN and its instructions for filing requirements and exceptions to those requirements. For 114 may If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located penatis. See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferorto, a instructions foreign trust? "Yes, you may have to file Form 3520. See instructions. . . For Paperwork Reduction Act Notice, see your tax return instructions CNN Schedule Form 1040 1040-SR) 2019 Client Facts: Nick M. Viall and Rachel A. Lindsay, husband and wife, file a joint return. They live at 113 Bachelor Way, Austin, TX. 42871. Nick's Social Security number is 234-56-7809, and Rachel's is 987-56-4321. Nick was born on November 12, 1956, and Rachel was born on September 25, 1962. Nick and Rachel file a joint tax return. Nick retired from ABC Medical, and Rachel works part-time as an accountant. Nick and Rachel had the following gross income for 2018: Rachel earned a salary of $40,000 working part-time as a tax-accountant during busy season. Interest income of $22,000 from various corporate bond investments. Interest income of $10,000 from bonds issued by the city of Austin. Other information that affects their tax return for the year is as follows: Rachel had $6,000 Federal tax withheld from her paycheck during the year and $2,500 in state income taxes withheld. The couple had other expenses that were all paid in 2018, which they told you may qualify as itemized deductions: Property taxes on their home - $7,750 > Mortgage interest - $18,000 (acquisition indebtedness; balance of $450,000 at the end of the year) Charitable contribution (cash) -$3,000 (to Trump Foundation, a qualified organization) They will deduct state income taxes paid during the year, rather than sales taxes paid during the year. In 2018, Nick started provided medical consulting services as a sole proprietor and had the following income and expenses from his consulting business: Consulting fees received - $55,000 Liability insurance premiums paid - $1,000 Office supplies - $400 Meals with clients all reasonable in amount) - $1,500 He will use the cash method of accounting for tax purposes. Nick drove his personal automobile to/from meeting clients, for a total of 2,200 miles in 2018. He used the same vehicle for personal purposes, but did not drive his wife's car at all. Nick verified that he has kept thorough written records to support the deduction for his business transportation. (Note that you will have to look up the mileage rate for 2018.) Nick made an investment in an ultrasound machine, which he will use in his consulting business. He placed this in service on October 29, 2018, and paid $25,000. The equipment has a 5-year class life. He does not want to expense any of the cost under Section 179 or take bonus depreciation on the machine, but will use MACRS to calculate his depreciation deduction in 2018. Nick took a business trip to a client's office during the year. He had no personal days on this trip. The expenses of the trip were: Airfare - $425 > Lodging - $1,200 Parking at the airport - $65 Taxi from the airport to the hotel - $30 Meals while traveling - $410 Based on the advice of a friend, Nick made quarterly estimated tax payments (Federal tax) in anticipation of the tax he would owe on his consulting income in 2018, totaling $20,000. The couple had the following transactions involving their investment assets during 2018: > Sold 500 shares of Urban Enterprises on 2/14/2018 for $185,000. (Stock was inherited from Nick's father, who died on November 28, 2017. The FMV of the stock on that date was $172,000; Nick's father had purchased the stock for $100,000.) Sold 100 shares of Harbaugh Inc. stock on 5/1/2018 for $25,000. (Stock was purchased on 1/2/2017 for $32,500.) Sold 300 shares of Buckeye Corp. stock on 11/1/2018 for $100,000. (Stock was purchased on 11/1/2017 for $112,000). All of these transactions were reported to them on form 1099-B from their investment company, and the basis was reported to the IRS for all of these transactions. OM 1545-ON SCHEDULE A Itemized Deductions (Form 1040) Go to www.insgow Schedule for instructions and the latest Information Attach to Form 1040 Woman Serial Caution you we caming antifed disastroson Form 4684, see the instructions for line 16 who onom 1010 2018 Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses se instructions - - - - 2 Enter amount from Form 1040, line 7 2 3 Multiply line 2 by 7.5% (0.075). .. 4 Subtract line from line 1. line 3 is more than line 1. enter-O- 5 State and local taxes a State and local income taxes or general sales taxes. You may include other income taxes or general sales taxes on line 5a. but not both. If you clect to include general sales taxes instead of income taxes, check this box........ State and local real estate taxes see instructions . . . . State and local personal property taxes. . d Add lines 5a through 5c e Enter the smaler of line 5d or $10.000 ($5,000 if married filing 5a Sb 6 Other taxes. List type and amount Interest You Paid Caution You 7 Addlines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy, build, or improve your home, se instructions and check this box..... a Home mortgage interest and points reported to you on Form naruto b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see Instructions and show that person's name, identifying no., and address 8d PRE Points not reported to you on Form 1098. See instructions for special rules. d Reserved. . . . . . . Add lines a through Bc. . . . . . . . Be 9 Investment interest. Attach Form 4952 required. See Instructions. 10 Add lines Be and 9 - Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions . . . . . . 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283f over $500. - 12 13 Carryover from prior year . . . . . 13 weens 14 Add lines 11 through 13. . . Casualty and 15 Casualty and the lossies) from a federally declared disaster other than net qualified Theft Losses disaster losses. Attach Form 4684 and enter the amount from line 18 of that form. See instructions. Other 16 Other-from list in instructions. List type and amount temired Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8 - - Deductions 18 you elect to itemize deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice, we the instructions for Form 1040 Cat No 1714C Siche A Form 1040, 2018 OMON SCHEDULEB Form 1040 1040-SRO Interest and Ordinary Dividends Go to www.insgow Schedule for instructions and the latest information Attach to Form 1040 1040-SR 2019 Part I 1 List name of payer any interest is from a ser-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this Interest first. Also, show that buyer's social security number and address Interest instructions for Forms 1040 and 1040-SR line 2 Not you 9000 INT. Form 1099-OIDO received a form statement from a brokerage firm payer and are the tot interest shown on that 2 Add the amounts on line 1.. . . . . . . . . . . . . . . . 3 Excludable interest on series EE and I U.S. wavings bonds issued after 1989. Attach Form 8815. . Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR line 2b Note: If line 4 is over $1,500, you must complete Part Ill. 5 Ust name of payer Amount Part II Ordinary Dividends (See Instructions and the instructions for Forms 1040 and 1040-SR, line 302 Notes if you received a Form usu statement from a brokerage firm, at the firm's name as the dividends shown & Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR on that form line 3D . . . . Note: If line 6s over $1.500, you must complete Part II Part III You must complete this part if you al had over $1.500 of taxable interest or ordinary dividends: bhad a Yes No foreign account; or received a distribution from, or were a grantor of, or a transferorto, a foreign trust Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a francia Accounts account such as a bank account, securities account, or brokerage account located in a foreign and Trusts country? See instructions ..................... Caution "Yes." are you required to file FinCEN Form 114, Report of Foreign Bark and Financial de Accounts FBAR, to report that financial interest or signature authority See FinCEN Form 114 to FCEN and its instructions for filing requirements and exceptions to those requirements. For 114 may If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located penatis. See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferorto, a instructions foreign trust? "Yes, you may have to file Form 3520. See instructions. . . For Paperwork Reduction Act Notice, see your tax return instructions CNN Schedule Form 1040 1040-SR) 2019