Question
Complete the tax return for Sara. She is not married with two dependent children (both age 4). She competes as a competitive gamer but does
Complete the tax return for Sara. She is not married with two dependent children (both age 4). She competes as a competitive gamer but does not do it for the money (and that shows since she never earned a profit in 6 years of the activity). Give me subtotals for income, adjusted gross income, taxable income, and taxes paid.
Saras ordinary rate is 31% and her capital gains rate is 16%.
| Salary working at GameStop HQ in Texas (Brick and Mortar Gaming is the Future) | 79,000 |
| Sole Proprietorship Income (does consulting on side) | 60,000 |
| Competitive Gaming (Revenue 10,000; Expenses 18,000) | Info to Left |
| Self-employment taxes paid | 15,000 |
| Dividend on GameStop stock bought 15 months ago | 1,000 |
| Alimony paid to former husband. Divorced in 2017, no expiration date for payments. | 30,000 |
| Gift of GameStop stock bought 14 months ago to company (FMV 55k; Basis 2k) | Info to Left |
| Contribution to Roth IRA | 6,000 |
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