complete the 2013 Schedule E template included

Show all calculations within the cells of the template. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.

Brian and Sheila Williams were married in October of 2005. They live at 1000 Main Street, Atlanta, GA 33127. Brian is a postal service worker. Sheila is a teacher at Grady High School. Brians social security number is 555-11-1111 and Sheilas social security number is 555-22-2222. They have a dependent daughter Jayla who is 10 years old (Born on May 12th). Jaylas social security number is 555-33-3333.
Included or Excluded Items
Loaned a relative $2000 2 years ago and that friend has filed for bankruptcy and will not be able to pay it back
Earned $100 interest in municipal bonds
Found a diamond worth $1000 on the ground
Received $500 in death benefits fron Brian's father
Received $4,000 court settlement. $1,000 was punitive damanges.
Brian paid $400/month in child support
Received a $1000 gift from his brother
Sheila won $100 playing bingo
Brian paid $200/month in alimony
Sheila received a $1000 gift from her mother
Portfolio Investments
Stock	Acquired	Sold	Sales Price	Cost (Basis)	Qualified Dividends
Red Stock	2/1/2013	10/5/2013	$6,000	$2,500	$0
White Stock	6/11/2006	10/15/2013	$5,000	$4,000	$100
Blue Stock	10/1/2002	8/3/2013	$2,000	$10,000	$0
Black Stock	3/6/2013	12/15/2013	$3,000	$5,000	$0
Yellow Stock	4/5/2000	N/A	N/A	$5,000	$300
Interest Income Source	Amount
Money Market Account	$200
Savings Account	$25
State Municipal Bonds	$35
Rental Property
They own and rent two pieces of residential real estate in Miami, FL. These properties were acquired with cash (so there are no mortgages on the homes). They both have real estate broker licenses in Georgia and Florida. They dedicate enough hours (through their business) to qualify as a real estate professional with regard to these properties.
Property 1
The first property is located at 17750 NW 17th Ave, Miami, FL. They collect $1,000 monthly in rent. The property was purchased June 30, 2010 for $150,000. The tax records show that the value of the land is $30,000 and the value of the home was $90,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax		$7,000/yr
Repairs		$ 900/yr
Insurance		$1,200/yr
Washing Machine		$300		(purchased 6/2/2012)
Refrigerator		$700		(purchased 7/1/2013)
Furniture		$2,000		(purchased 4/1/2011)
Property 2
The second property is located at 5610 NW 11th Ave, Miami, FL. They collect $1,500 monthly in rent. The property was purchased on June 12, 2010 for $100,000. The tax records show that the value of the land is $20,000 and the value of the home was $80,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax		$6,200/yr
Repairs		$3,000/yr
Insurance		$1,200/yr
Legal fees		$ 500/yr
Advertising Expense		$ 500/yr

SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99)

Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) Attach to Form 1040, 1040NR, or Form 1041. Information about Schedule E and its separate instructions is at www.irs.gov/schedulee.

OMB No. 1545-0074

2013 Attachment Sequence No. 13

Name(s) shown on return

Your social security number

Part I

Income or Loss From Rental Real Estate and Royalties Note. If you are in the business of renting personal property, use

Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.

A Did you make any payments in 2013 that would require you to file Form(s) 1099? (see instructions)

Yes

No

B If Yes, did you or will you file required Forms 1099?

Yes

No

1a

Physical address of each property (street, city, state, ZIP code)

A

B

C

1b

Type of Property (from list below)

2 For each rental real estate property listed above, report the number of fair rental and

Fair Rental Days

Personal Use Days

QJV

A

only if you meet the requirements to file as a qualified joint venture. See instructions.

A

B

B

C

C

personal use days. Check the QJV box

Type of Property:

1 Single Family Residence

2 Multi-Family Residence

3 Vacation/Short-Term Rental

4 Commercial

5 Land

6 Royalties

7 Self-Rental

8 Other (describe)

Income:

Properties:

A

B

C

3 Rents received . . . . . . . . . . . . .

3

4 Royalties received . . . . . . . . . . . .

4

Expenses: 5 Advertising . . . . . . . . . . . . . . 6 Auto and travel (see instructions) . . . . . . . 7 Cleaning and maintenance . . . . . . . . . 8 Commissions. . . . . . . . . . . . . . 9 Insurance . . . . . . . . . . . . . . . 10 Legal and other professional fees . . . . . . . 11 Management fees . . . . . . . . . . . . 12 Mortgage interest paid to banks, etc. (see instructions) 13 Other interest. . . . . . . . . . . . . . 14 Repairs. . . . . . . . . . . . . . . . 15 Supplies . . . . . . . . . . . . . . . 16 Taxes . . . . . . . . . . . . . . . . 17 Utilities . . . . . . . . . . . . . . . . 18 Depreciation expense or depletion . . . . . . . 19 Other (list) 20 Total expenses. Add lines 5 through 19 . . . . . 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) . . . . . . .

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

(

)

(

)

(

)

23a Total of all amounts reported on line 3 for all rental properties . . . . b Total of all amounts reported on line 4 for all royalty properties . . . . c Total of all amounts reported on line 12 for all properties . . . . . . d Total of all amounts reported on line 18 for all properties . . . . . . e Total of all amounts reported on line 20 for all properties . . . . . .

23a

23b

23c

23d

23e

24 Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . .

24

25

(

)

26

For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040) 2013