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Complete the forms in the bottom of page 2 for year 2018. i need to get this done as soon as possible. Thanks Chris and

Complete the forms in the bottom of page 2 for year 2018. i need to get this done as soon as possible. Thanks image text in transcribed
image text in transcribed
Chris and Stefani Watanabe live with their two boys at 847 Victoria Lane, Riverside, California 92154. Chris is an accountant and owns his own business. Stefani is an elementary school principal. Their children, Justin and Jordan, are ages 17 and 9, respectively. Below are the Social Security numbers for the family: Chris Stefani Justin Jordan 495-77-7777 919-77-8888 603-55-5555 652-44-4444 Chris runs his accounting business out of his home. The name of the business is "Excellence Accounting" (EIN is 37-1112225 and principal business code 541219). Chris uses the cash method of accounting. His business had the following income and expenses for the year. $ 98,000 Gross Revenues Expenses: Advertising Office Supplies Travel Business Meals Taxes & Licenses Wages Professional Org. Dues Legal Fees Business Insurance 2,100 800 6,145 2,400 2,800 34,000 650 10,500 1,200 11,400 business miles & 3,200 personal miles - use standard mileage method (assume the miles were incurred evenly throughout the year) Chris has an office in his home (ignore the Simplified Method). The office is 300 square feet and his home is 3,000 square feet. The following expenses represent amounts paid for the entire house. Insurance $ 500 Utilities 1,000 "See Itemized Deduction section below for Home Property Tax and Home Mortgage Interest amounts. Chris and Stefani paid the following expenses during the year (assume taxpayers have necessary receipts): Medical and dental expense $8,750 Property taxes on home 7,500 State income taxes 6,900 Donations to church 4,750 Donations to needy people 200 Clothing donations to Goodwill 200 Personal Property Taxes - Value Based Mortgage interest 200 15,900 Stefani's W-2 from the school district showed the following: Wages: $86,925 Federal Income Tax Withheld: $8,086 Chris and Stefani paid $3,500 to Friendly Hills Child Care Center for after school care for Jordan. Friendly Hills is located at 111 Main Street Riverside, California 92154 and their federal identification number is 39-9991111. Stefani earned her bachelor's degree in 2015 (and has used up her American Opportunity Credit in prior years). In 2018, during the evenings, Stefani is attending California State University to earn her master's degree in Mathematics. She is hoping to be able to teach at a community college eventually. Her tuition for the year reported on a 1098-T was $5,950. (make reasonable assumptions about missing data.) Chris and Stefani also earned $975 of interest income from California State Bank during the year and had reported dividends on 1099-DIV: Harford Mutual $400 box 1A (ordinary) & $0 box 1B (qualified) Janis Funds $ 800 box 1A (ordinary)&$o box 1B qualified) Chris and Stefani own a cabin (3105 Stone Road, Big Bear, CA 92156). They did not use the property for personal use at all during the year. The rental does not qualify for the Qualified Business Income Deduction. The revenue and expenses for the rental property are: $ 18,000 Rental Income Expenses: Insurance Property Taxes Management Fees Cleaning/Maintenance Mortgage Interest Repairs Utilities 1,200 2,500 1,600 1,100 9,000 960 450 Stefani and Chris each put $5,000 into an IRA for 2018. Neither are eligible plan participants at work. Chris likes to play the slot machines at the local casino. He had $2,000 in gambling winnings and $6,000 in gambling losses. Chris has a qualified education loan and he paid $350 in student loan interest for the year. Stefani has an ex-husband, Jim Goodyear (SSN 555-99-8888) and according to their pre-2018 divorce decree she is required to pay him $400 in alimony per month Chris's wealthy uncle died during the year and Chris received a $100,000 inheritance. In 2018, Chris and Stefani received a state income tax refund from their 2017 return of $858. They itemized deductions on their 2017 return and received a tax benefit from this deduction. Complete only those forms and schedules the Watanabe's would be required to file with the IRS (1040, Sch 1, Sch 3, Sch 4, Sch A, Sch C, Sch E, Sch SE, 2441, 8863,8829) Chris and Stefani Watanabe live with their two boys at 847 Victoria Lane, Riverside, California 92154. Chris is an accountant and owns his own business. Stefani is an elementary school principal. Their children, Justin and Jordan, are ages 17 and 9, respectively. Below are the Social Security numbers for the family: Chris Stefani Justin Jordan 495-77-7777 919-77-8888 603-55-5555 652-44-4444 Chris runs his accounting business out of his home. The name of the business is "Excellence Accounting" (EIN is 37-1112225 and principal business code 541219). Chris uses the cash method of accounting. His business had the following income and expenses for the year. $ 98,000 Gross Revenues Expenses: Advertising Office Supplies Travel Business Meals Taxes & Licenses Wages Professional Org. Dues Legal Fees Business Insurance 2,100 800 6,145 2,400 2,800 34,000 650 10,500 1,200 11,400 business miles & 3,200 personal miles - use standard mileage method (assume the miles were incurred evenly throughout the year) Chris has an office in his home (ignore the Simplified Method). The office is 300 square feet and his home is 3,000 square feet. The following expenses represent amounts paid for the entire house. Insurance $ 500 Utilities 1,000 "See Itemized Deduction section below for Home Property Tax and Home Mortgage Interest amounts. Chris and Stefani paid the following expenses during the year (assume taxpayers have necessary receipts): Medical and dental expense $8,750 Property taxes on home 7,500 State income taxes 6,900 Donations to church 4,750 Donations to needy people 200 Clothing donations to Goodwill 200 Personal Property Taxes - Value Based Mortgage interest 200 15,900 Stefani's W-2 from the school district showed the following: Wages: $86,925 Federal Income Tax Withheld: $8,086 Chris and Stefani paid $3,500 to Friendly Hills Child Care Center for after school care for Jordan. Friendly Hills is located at 111 Main Street Riverside, California 92154 and their federal identification number is 39-9991111. Stefani earned her bachelor's degree in 2015 (and has used up her American Opportunity Credit in prior years). In 2018, during the evenings, Stefani is attending California State University to earn her master's degree in Mathematics. She is hoping to be able to teach at a community college eventually. Her tuition for the year reported on a 1098-T was $5,950. (make reasonable assumptions about missing data.) Chris and Stefani also earned $975 of interest income from California State Bank during the year and had reported dividends on 1099-DIV: Harford Mutual $400 box 1A (ordinary) & $0 box 1B (qualified) Janis Funds $ 800 box 1A (ordinary)&$o box 1B qualified) Chris and Stefani own a cabin (3105 Stone Road, Big Bear, CA 92156). They did not use the property for personal use at all during the year. The rental does not qualify for the Qualified Business Income Deduction. The revenue and expenses for the rental property are: $ 18,000 Rental Income Expenses: Insurance Property Taxes Management Fees Cleaning/Maintenance Mortgage Interest Repairs Utilities 1,200 2,500 1,600 1,100 9,000 960 450 Stefani and Chris each put $5,000 into an IRA for 2018. Neither are eligible plan participants at work. Chris likes to play the slot machines at the local casino. He had $2,000 in gambling winnings and $6,000 in gambling losses. Chris has a qualified education loan and he paid $350 in student loan interest for the year. Stefani has an ex-husband, Jim Goodyear (SSN 555-99-8888) and according to their pre-2018 divorce decree she is required to pay him $400 in alimony per month Chris's wealthy uncle died during the year and Chris received a $100,000 inheritance. In 2018, Chris and Stefani received a state income tax refund from their 2017 return of $858. They itemized deductions on their 2017 return and received a tax benefit from this deduction. Complete only those forms and schedules the Watanabe's would be required to file with the IRS (1040, Sch 1, Sch 3, Sch 4, Sch A, Sch C, Sch E, Sch SE, 2441, 8863,8829)

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