Explanation:

U.S. Individual Income Tax Return for Armando and Lourdes Gonzales

First name:::::::::::: Armando Z.Last name::::::::::::Gonzales:::SSN::333-45-6666.

spouse's first name :::Lourdes:::::::::::::Last name :::::::::::Gonzales::::SSN::566-77-8888

Home address ::::::::621 Franklin Avenue,

City:Cincinnati state::Ohio :::ZIP code= 45211

Armando Z. and Lourdes K. Gonzales

Filing Status

2)Married filing jointly

6c)Exemptions:

First name:::::::::::: Ricardo Z::: Last name::::::::::::Gonzales:::SSN::576-18-7928 :: Relationship:Son

First name:::::::::::: Selena Z::: Last name::::::::::::Gonzales:::SSN::575-92-4321::: Relationship:Daughter

First name:::::::::::: Felipe Z::: Last name::::::::::::Gonzales:::SSN::613-97-8465::::: Relationship:Son

6d)Total number of exemptions claimed::::::::::::2

Income

7) Wages:::::::::::::::$40,000(30,000 + 10,000)

8a) Taxable interest::::::::::::::$800

b) Tax-exempt interest ::::::::$1,000

9 a) Ordinary dividends.::::::::N/A

9b) Qualified dividends :::::::::::$1795($540 + $390 + $865=1795)

12) Business income ::::::::::::::45800see SCHEDULE c

13) Capital gain or (loss). Attach Schedule D :::::::::$107,050

17) Rental real estate,:::::::::::::::::::::::::::::::::::::::::::::$$3,144see SCHEDULE e

22) Combine the amounts in the far right column for lines 7 through 21.

This is your total income:::::::::::::$$199,589

Note: Armando not to claim tution fees because their income exceeded $160,000

37) Subtract line 36 from line 22. This is your adjusted gross income::$199,589

38)Amount from line 37 (adjusted gross income::::::::::::::::::::$$199,589

40)( Itemized deductions::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$17,570

41) Subtract line 40 from line 38::::::::::::::::::::::::::::$182019

42 Exemptions:::::::::::::::::::::::::::::::::::::::::::::::::::::::::$$941

43 Taxable income. Subtract line 42 from line 41.:$182019 - $941=$181,078

SCHEDULE BInterest and Ordinary Dividend

Part IInterest :::::::::::Listname of payer

1)State Savings Bank on a joint account:::::::::::::::$800

2) Add the amounts on line 1:::::::::::::::::::::::::::::::::$800

SCHEDULE C

Profit or Loss From Business

Name of proprietor :::::::Armando Z. Gonzales Social security number::::::::::::::::333-45-6666.

A) Principal profession:::::::::::: Dentist

C) Business name::::::::::::::::::Armando Z. Gonzales

D) Employer ID:::::::::::::::::::::01-2222222

E) Business address ::::::::::::645 West Avenue, Cincinnati, Ohio 45211

F) Accounting method: cash method

[18/07, 13:56] Steve Kaleke: Itemized Deductions

Taxes Paid

6) Real estate taxes:::::::::::::::$ 4,762

Interest Paid

10) Home mortgage interest ::::::$8,250

16)Gifts to Charity :::::::::::::::::::::::::$3,080

Job Expenses and Certain Miscellaneous Deductions

21) Unreimbursed employee expenses:

Professional dues (Lourdes):::::::::::::::::325

Professional subscriptions (Lourdes)::::245

Professional dues(Armando):::::::::$ 490

TRavel(Lourdes):::::::::::::::::::::::::::6800 * 57.5 cents =$3910.00

22)Fee for preparation of 2014 :::::::::$500

24) Add lines 21 through 23:::::::::::$5470

25) Enter amount from Form 1040, line 38::::::::::$$199,589

26) Multiply line 25 by 2%::::::::::::::::::::::::::::::::::::$$199,589 *2/100=$3992

27) Subtract line 26 from line 24.::::::::::::::::::::::::$5470 -$$3992 =$1478

29)Total Itemized Deductions::::::::::::::::::::::::::::::::$17,570

Add lines 6 t0 16 then add line 27

SCHEDULE D:

Name ofstock:::::::::::Sale price ::::::::::::::::Cost price::::::::::::::::::GAin

Capp Corporation stock::8350::::::::::::::::::::::$2,900::::::::::::::::::::::$5450

Lourdes's mother, Maria:$131,600:::::::::::::::$30,000::::::::::::::::::::::$101,600

Total :::::::::::::::::::::::::::::::::::::::::::$107,050

Sale price = 200* $42 = $8400-50=8350

Cost price= 200 * $14.50=$2,900

Sale price ::House =$140,000 -6%=$8,400=$131,600

Cost price =$$30,000

Gain = $131,600 - $30,000=$101,600

SCHEDULE E

Supplemental Income and Loss

Income or Loss From Rental Real Estate:

1a) Physical address of each property::::::::325 Oak Street, Cincinnati, Ohio 45211

1b) Type of Property:::::::::::::::::::::::::::::::::::1 Single Family Residence

3) Rents received::::::::::::::::::::::::::::::::::::::::::$1000*6=$6,000

7)Cleaning and maintenance::::::::::::::::::::::::::465

9) Insurance::::::::::::::::::::::::::::::::::::::::::::::$500

16) Taxes::::::::::::::::::::::::::::::::::::::::::::::::::::$800

18) Depreciation expense:::::::::::::::::::::::::::::$30,000 /27.5=$1091

20) Total expenses.::::::::::::::::::::::::::::::::::::::$2,896

21)

Subtract line 20 from line 3 ::::::::$6,000 - $2,896==$3,144

26) Total rental real estate::::::::::::$$3,144.

6d) Exemptions: calculations

2.

Multiply $4,000 by the total number of exemptions claimed on Form 1040, line 6d=$4,000 *2=$8,000

3) Enter the amount from Form 1040, line 38::::::::::::::::::$199,589

4) Enter the amount shown below for filing status::::::

Married filing jointly:::$ 309,900

5.)Subtract line 4 from line 3.::::::::::::::::$ 309,900 - $199,589=$110311

6)Divide line 5 by $2,500::::::::::::::::::::::$110311 /2500==44.12

7)Multiply line 6 by 2% :::::::::::::::::::::::::::::::::44.12*2/100=0.8824

8)Multiply line 2 by line 7::::::::::::::::::::::::::::::$8,000 * 0.8824=$7059

9)Deduction for exemptions.Subtract line 8 from line 2:$8,000 - $7059=$941

need this in form 1040