2018 Winter UW B BUS 4SO B Federal Income Tax Midterm I Your Name: You are a CPA your clients 2017 tax return YourciientsareLandon, age 52, and Mia, age 51, married and living in Newport Hills They have One child, Elie. age 22 Landon had the following in 2017 salary from working at a tugboat Company advance received in 2017, for a special 2 year project 220 interest income on joint bank account interest received On IJS gov 't bo n ds 1m monthly annuity received original cost of the annuity in 2012 life insurance from his dad's passing, divided equally among he and his 2 siblings 5.000 total premiums for the family that Landon's employer pays for health insurance SOO state tax refund received in 2017 for 2016. In 2016 itemized deductions were over 520K 400 he paid in job expenses, that the tugboat company did not reimburse 3, 1m contributions he made to his retirement plan 15,000 taxes withheld on his salary Landon is Mia's second husband Her first husband divorced her in 2016, but she didn't receive the property settlement until early 2017 300,000 was the FMV of the house she received She is a stay at home mom, and saves the family money by contributing the following 2,000 value of vard care she spares the family from paying if she worked outside the home 4,000 royalties she receives on several items she has published 2,300 expenses related to her publishing 1,500 money received for selling hand-beaten flax to make linen 1,800 paid for supplies related to her flax/linen projects she does for fun The family uses Mia's property settlement house as a vacation home They have the following income from it: 1,000 for renting it out to friends for 10 days Landon & Mia pay expenses on this 2nd house 900 utilities 3,500 mortgage interest 1,200 property taxes paid July 2017 (for the period July 2017 -June 2018) Landon & Mia invest as well 1,700 is how much their Cabela's stock increased in value in 2017 4,000 gain on sale of Macy's stock held for investment for 5 years They have a partnership called Lata, owned as follows: Landon 30%, Anne (his Aunt) 70% Greenbush Corporation is owned as follows: Blake (Landon's brother) 20%, LaLa partnership 20%, Anne 20%, Navi (no relation) 40% 40,000 total net income of LaLa partnership 200 distribution from Lata partnership, to Landon (3,500) loss on Radio Shack stock sold in 2017 to Greenbush Corporation They had the 0110wing expenses 70 1,800 property taxes on 220 homeowners their main home association dues on their main 8,000 cost to replace windows 3,500 paid for surgery on their main 8,000 given to their church -T 1,900 sales tax paid to WA state Elie attends UW full-time, and has the following 2,500 1,750 of the fellowship she spent on tuition 750 of the fellowship she spent on dorms 10,000 amount her uncle paid her to build a him a porch 2,000 Wasthe value of the work she did 4,000 expenses she said were related to her porch buil&rbusiness, incurred for ballet lessons to de-stress her after building au day 3,000 interest received T 200 she donated to Pacific Northwest Ballet Her parents encourage her to save her money, and they provide most of her When not at school, she lives with them termine tax liability for Landon & Mia Elie the full tax formula for each one te down your thought process, not just the answer Show calculations Show limits you checked Notate items that dont belong in the tax formula with a reason or rganized, and LABEL, LABEL. LABEL (Lengthy he end, step back and ensure your answers and totals make sense