Fall. 2019 Individual Income Tax 419 TAX FORM PROBLEM Compute the tax for 2019 using the 1040 forms. Not a group project, Taxpayer Irene Done, age 40, works as a CPA for Indianapolis Industries, Inc., as well as having a part- time private practice. Her daughter Shirley Done, age 20, is a full time student at U of 1; Shirley earns $3000 a year, and mom Irene spends $5,000 to support her. Irene's Self Employ. Tax was $2000. $40,000 1,000 Irene had the following receipts in 2019: salary medical insurance premiums paid by employer group term life insurance face value twice her salary Pepsi dividends Bank Ten CD interest MSD of Perry Township school bond interest Pepsi contest winner: trip to New York City Sold Coke stock (paid $5,000; owned 2 years) Alimony from ex-husband Child support from ex-husband Sale of land (paid $10,000; owned 2 years) rents from apartment double income from private practice gift from mother 500 500 500 1,000 2,000 12,000 4,000 12,000 12,000 12,000 10,000 Irene had the following expenses in 2019: CPA business: office rent 6,000 computer purchased 1/1/10 (tax maximum depreciation) 3,000 insurance 1,000 supplies 1,000 Rentals: cost of rental (building $100,000 bought 6/1/99) taxes paid 2,000 insurance 1,000 alimony to second ex-husband 6,000 surgery expenses for daughter Shirley 5,000 Indiana income taxes 2,500 property tax for automobile 500 property tax on home 2.000 SE church contribution 2,000 unreimbursed travel expense to seminar related to employment 1.000 personal car totaled (fmv $8,000, basis $10,000, insurance reimburse $6,000) . home mortgage interest 5,000 credit card interest 500 Fall. 2019 Individual Income Tax 419 TAX FORM PROBLEM Compute the tax for 2019 using the 1040 forms. Not a group project, Taxpayer Irene Done, age 40, works as a CPA for Indianapolis Industries, Inc., as well as having a part- time private practice. Her daughter Shirley Done, age 20, is a full time student at U of 1; Shirley earns $3000 a year, and mom Irene spends $5,000 to support her. Irene's Self Employ. Tax was $2000. $40,000 1,000 Irene had the following receipts in 2019: salary medical insurance premiums paid by employer group term life insurance face value twice her salary Pepsi dividends Bank Ten CD interest MSD of Perry Township school bond interest Pepsi contest winner: trip to New York City Sold Coke stock (paid $5,000; owned 2 years) Alimony from ex-husband Child support from ex-husband Sale of land (paid $10,000; owned 2 years) rents from apartment double income from private practice gift from mother 500 500 500 1,000 2,000 12,000 4,000 12,000 12,000 12,000 10,000 Irene had the following expenses in 2019: CPA business: office rent 6,000 computer purchased 1/1/10 (tax maximum depreciation) 3,000 insurance 1,000 supplies 1,000 Rentals: cost of rental (building $100,000 bought 6/1/99) taxes paid 2,000 insurance 1,000 alimony to second ex-husband 6,000 surgery expenses for daughter Shirley 5,000 Indiana income taxes 2,500 property tax for automobile 500 property tax on home 2.000 SE church contribution 2,000 unreimbursed travel expense to seminar related to employment 1.000 personal car totaled (fmv $8,000, basis $10,000, insurance reimburse $6,000) . home mortgage interest 5,000 credit card interest 500
