Complete the current federal tax forms: Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Form 8949, Form 4797, Schedule SE, Schedule 1, Schedule 4, and Schedule 5. Don't worry about state tax return

IRA deduction 5,500 *tax exempt interest is from public activity bonds *Ignore any tax penalties, tax credits, amt, and net investment tax

AGI 275,338 John Smith (SSN 123-45-6789 Born 1/1/1965) Jane Smith (SSN 111-11-1111 Born 1/1/1966) Filing status: married filing jointly

Address: Route 8, Box 77777, Lakewood, GA 99999 John has two children: Mary (SSN 222-22-2222 Born: 2/1/2000) and Mark (SSN 333-33-3333 3/1/1997)

Jane's mother is Granny Loud (SSN 000-00-0000 Born 1/1/1941)

The information from tax files indicates that the Smith's use their Chevy pick up and Toyota Camry for personal use. In contrast, the tax files indicate that the Smith's BMW was used for Mary's business which was 100% business use. The BMW cost $20000 and accumulated depreciation was $20000. Used actual expense method.

2019 information

Mary lived at home with John and Jane for the whole year. She dropped out of high school on her birthday. 2/1/2000 and worked as a cashier for McDonald's. Her earnings were $13000 and she saved most of it. The Smith's actually supported her. Should she be included in the Smith's tax return?

Mark is attending Miss State University on a full educational grant. The Smith's provide all of his living expenses outside of school related expenses. Can the Smith's claim him?

Granny is 78 and and lived with us starting at the end of Jan. She received dividends of $3200. She spent all of it plus 11,500 from her investment of a city bond for food and shelter. The Smith's supported her from April through December and paid 21000 for her expenses excluding room and board. 7400 for a medical bill. Can the Smith claim her?

John paid his parent's mortgage interest of 11,800 and received alimony of 6,000.

John divorced Sarah in 2000.

Jane is an interior designer and purchased a computer on July 1, 2019 for 4800. She sold the BMW for 13000 on April 15, 2019. Purchased a Chevy Malibu on August 1, 2019 28,000. The Malibu is for business only. Use tax method that gives best write off for 2019. Use straight line depreciation.

The Smith's Purchased land for 67000 and sold the land to the city for 135000 on November 17,2019. The land is commercial.

The Smith's donated 18000 to church and 3500 to Big Brother and Big Sister's program.

IRA 5500 on Feb 2, 2019

Tax Documentation

John- CVS-Manager

Taxable income 160000

Federal withholdings 29000

State withholdings 6500

Contributions to qualified pension 8800

Jane- Walmart greeter- part-time

Taxable income 15000

Federal tax withholdings 3400

State withholdings 700

Mary- Cashier- McDonalds

Taxable income 12750

Federal withholdings 2850

State withholdings 550

Other Income

State tax refund 3000

Capital bank- interest 6375

US Treasury bond interest 1050

City Municipal bond interest 425

Reimbursement of medical expenses received from Health insurance provider 3600

Jane's Interior design fees 56000

Sale of Stocks Purchase Price Date of Purchase Date of Sale Sales Price

AAA, Inc 15 per share 1000 Shares 3/5/16 5/18/2019 20 per share 1000 shares

BBB, Inc 5 per share 1000 Share 5/20/2017 7/14/2019 9 per share 1000 shares

ccc, Inc 12 per share 500 Shares 8/11/2017 10/15/2019 8 per share 500 shares

Estimates federal tax payments

1/1/2019 1300, 4/13/2019 1300, 6/15/2019 1300, 9/14/2019 1300, 1/15/2020 1600

Medical Expenses

Copays(doctors, dentist, surgery etc., 625

Disability insuranse premium 1100

Granny's medical bills 7400

Business Expenses

CVS

Business Dinner's 970

Country Club dues 5500

Meals and entertainment expense(reimbursed) 6780

Golf green fees following a business meeting(not reimbursed) 730

Interior Design Business

Supplies 8900

Advertising 2400

Computer 4800

Mileage on Malibu 17000

Other expenses

Personal Property Taxes

Camry 475

Chevy Pickup 500

Malibu 380

Interest Expenses

Home Mortgage 22600

Master Credit Card 960

Home equity loan used to purchase a boat 2600

Other Expenses

Oil and gas for the Malibu 8200

Insurance policy for the Malibu 1800

Real estate taxes for the house 6790

National Geo Subscription 420

Tax Preparation fees paid in 2019 4700