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Comprehensive Problem 6-2 Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents. Warner is the
Comprehensive Problem 6-2 Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents. Warner is the president of Jaystar Corporation located in Macon, Georgia. The Jaystar stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner's father. Warner and Augustine received the following tax documents: 1) W-2 Form 2) Form 1099-INT 3) Form 1098 4) Letter from Macon Museum of Arts regarding their charitable contribution. These items are located on separate tabs. The Robins paid the following amounts (all can be substantiated): General state sales tax Auto loan interest Medical insurance Income tax preparation fee Charitable contributions in cash: $2,120 $4,800 $11,400 $750 Income tax preparation fee Charitable contributions in cash: Church Central Georgia Technical University Safe-deposit box $750 $2,700 $5,000 $200 The Robins had total itemized deductions of $33,567 in 2020 which included a $9,600 state tax deduction. The tax basis for the donated album cover art is $25,000 and has been owned by Warner and Augustine for 5 years. Daystar does not cover health insurance for its employees. In addition to Warner and Augustine's health insurance premiums shown above, Augustine required surgery which cost $6,500 for which only $3,200 was covered by insurance. Warner had to drive Augustine 130 miles each way to a surgical center. On January 1, 2021, Warner sold land to Jaystar Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction. Daystar Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $12,000 ($6,000 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work). The Robins received a $2,800 EIP in 2021. The Robins received a $2,800 EIP in 2021. Required: Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949. 9 Make realistic assumptions about any missing data. 13 The taxpayers did not have health insurance coverage for the entire year and they do not want to make a contribution to the presidential election campaign. Enter all amounts as positive numbers, unless instructed otherwise. If an amount box does not require an entry or the answer is zero, enter "0". . If required round any dollar amount to the nearest dollar.
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