file tax form for filing jointly with married couple with children

CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. 1 Rents SCHOOL DISTRICT 321 A ST EATON RAPIDS MI 48827 $ 2016 2 Royalties PAYER'S federal identification number RECIPIENT'S identification number 38-1234566 OMB No. 1545-0115 $ Form 1099-MISC 3 Other income 4 Federal income tax withheld $ $ 5 Fishing boat proceeds 6 Medical and health care payments $ $ 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest 215-53-1772 RECIPIENT'S name BEN JACKSON $ Street address (including apt. no.) 1244 EAGLE RD City or town, state or province, country, and ZIP or foreign postal code HOLT MI 48842 Account number (see instructions) FATCA filing requirement 42950 $ Form 1099-MISC QNA 15b Section 409A income $ (keep for your records) $ 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer $ (recipient) for resale a 11 12 13 Excess golden parachute payments 14 Gross proceeds paid to an attorney $ 15a Section 409A deferrals Miscellaneous Income 16 State tax withheld $ $ www.irs.gov/form1099misc $ 17 State/Payer's state no. This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 18 State income $ $ Department of the Treasury - Internal Revenue Service TAX RETURN PROJECT 2 Ben and Lisa Jackson have provided you with the posted documents and the following verified information. Ben and Lisa have 3 children and wish to file jointly. Ben's DOB is 11-21-1971 and Lisa's DOB is 3-4-1974. Their dependents are: Son Kenny 336-98-7522 DOB 5/25/1996, Daughter Wendy 336-59-8475 DOB 6/21/1999, and Lisa's niece Brenda Kennedy 26598-7415 DOB 2/6/2001 who has been living with the Jackson's since the death of her parents in March of 2016. The Jacksons are the sole means of support for Brenda and Lisa was the sole beneficiary of $650,000 of life insurance benefits from Brenda's parent's estate intended to be used for Brenda's support. The Jackson's have not received any social security payments for Brenda as yet. Interest earned on the life insurance totaled $26,050 for the year from Prudential Insurance and a 1099 was presented. This money is saved for Brenda's education and minimal amounts are used for annual support (less than 50% of her living expenses). Kenny is a fulltime student and his eligible college costs were $16,500. Ben is a computer designer and consultant and he has opened a computer consulting business Blue Ribbon Consultants 165 West Commerce Park, Holt Mi 48842. Ben is a cash basis taxpayer. He started the business on 6-6-2013 and he has had the following expenses in 2013 for which he has the appropriate documentation: Advertising $1,150; Insurance for property and general liability $1,775; Accounting 2,566, Rent $2,200 per month starting June 6; Office Supplies $1,650; Utilities $2,200, Misc. Publications $265, Internet service $830. He also paid an employment service $17,111 for a part time secretary. He traveled to several conventions and spent $2,366 on Hotels and $1,196 on food and he has provided receipts. He also entertained potential clients for $295. He drove to the most of the conventions and paid air expenses of $1,100 for one convention and he rented a car for a total of $396. All travel was over night and domestic. Ben purchased a computer system for $4,900, office furniture for $3,150 and other office equipment for $2,323 when he opened for business. He chose not to apply section 179 of the IRC. He drives a 2008 Chevy sedan (he purchased it used with a cost of $22,560 in 2011 current value is unknown) 100% for business except for some of the miles driven in January, February and March 2013 and he would like the largest deduction for his vehicle. He drove a total of 11,586 business miles including in that total 1,592 miles in March, April and May 2013 when he was preparing to open his business. Total miles for that car for the year were 19,283. He had the following automobile related business expenses: parking $258, interest on financing the vehicle $1,100, license plates of $166, Gas oil and maintenance of $2,140. A mileage log was used to verify the mileage. Business revenue included $31,659 on his books plus the income from a School District reported on a Form 1099 MISC of $42,950 not on his books. The school district was a new client. He made estimated tax payments of $7,100 to the IRS and $3,500 to the State for the year. They paid $3,255 in additional Federal taxes due for 2012 on April 14, 2011 and $1,300 in additional State taxes due on the same date. They sold 300 shares of CMS stock for $13,720 on 6-7-2016 which cost $9,500 on 5-7-2000 and 100 shares of XCV for $976 on 7-7-2016 for which they paid $1,375 on 1-29-2009. They also sold 77 Shares of LTV for $11,980 which had a basis of $9,570 purchased on 1/29/2016 and sold on 11/22/2016. They received $1,230 of dividends of which $930 were qualified dividends. They also received $1,100 in interest from Series EE Savings Bonds that they cashed in March 3, 2013 which was used to help start the business. Lisa is a Nurse and she occasionally must work in some of the hospital's specialty clinics. She drove her 2007 van ($27,000 original cost) a total of 32,155 miles of which 5,655 were for traveling to the clinics and 16,345 commuting to her job. The rest was personal use miles. She also incurred $543 in lunch expenses while at the clinics. Her employer does not reimburse Lisa for any expenses. Lisa is still paying on her student loans and she has paperwork indicating that she paid $2,675 in interest on the loans. Lisa also paid $326 for uniforms. Insurance on the van was $2,300 and the License plates cost $266. She bought a new watch for $110 on July 11, 2013 and she wonders if she can claim it as a deduction. The Jackson's had the following personal items: Property tax of $3,655, Mortgage Interest of $11,966 and Private Mortgage insurance of $1,296 on a form 1098, gifts to their church of $6,622 cash, and paid $266 to have their taxes done in 2015. They did not itemize in 2015. They made a gift of $5,000 to Ben's cousin Sid who lives in Portland Oregon. The health insurance premiums on their W2s were pre-tax and they had out of pocket medical, dental, and prescription expenses of $3,760. They traveled 550 miles for medical reasons. Lisa had withdrawn $10,000 from her IRA in 2015 to help pay for the business start-up expenses. Prepare their 2016 Federal tax return (80 pts.) and provide two ways they might save on their taxes in 2017 assuming everything stays the same as in 2016. (10 Points each suggestion as a letter to the Jacksons.) :\u0010\u0015 )RUP :DJH DQG 7D[ 6WDWHPHQW 2016 a Employee's social security number This information is being furnished to the Internal Revenue Service. 215-53-1772 b Employer identification number (EIN) 1 Wages, tips, other compensation 38-5655699 2 Federal income tax withheld 32155 c Employer's name, address, and ZIP code 3 Social security wages BK COMPUTER CONSULTING 1145 WINTER RD HOLT MI 48842 5 Medicare wages and tips 3152 4 Social security tax withheld 28132 1744 6 Medicare tax withheld 28132 408 7 Social security tips d Control number 10 Dependent care benefits 9 e Employee's first name and initial BEN 8 Allocated tips Suff. 11 Nonqualified plans Last name 12a See instructions for box 12 C o d e JACKSON 13 Statutory employee Retirement plan Third-party sick pay X 1244 EAGLE RD HOLT MI 48842 D 4023 12b C o d e 12c 14 Other C o d e 12d C o d e f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. MI 32155 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 1698 2016 a Employee's social security number 255-48-9766 b Employer identification number (EIN) This information is being furnished to the Internal Revenue Service. 1 Wages, tips, other compensation 36-5656565 2 Federal income tax withheld 102577 c Employer's name, address, and ZIP code 3 Social security wages LOCAL HOSPITAL 1235 LOCAL AVE LANSING MI 48911 5 Medicare wages and tips 12553 4 Social security tax withheld 109577 6794 6 Medicare tax withheld 109577 1589 7 Social security tips d Control number 10 Dependent care benefits 9 e Employee's first name and initial LISA 8 Allocated tips Suff. 11 Nonqualified plans Last name 12a See instructions for box 12 C o d e JACKSON 13 Statutory employee Retirement plan Third-party sick pay X 1244 EAGLE RD HOLT MI 48842 D 8000 12b C o d e DD 17985 12c 14 Other C o d e 12d C o d e f Employee's address and ZIP code 15 State MI Employer's state ID number 16 State wages, tips, etc. 102577 17 State income tax 3659 18 Local wages, tips, etc. 102577 19 Local income tax 1236 20 Locality name LAN TAX RETURN PROJECT 2 Ben and Lisa Jackson have provided you with the posted documents and the following verified information. Ben and Lisa have 3 children and wish to file jointly. Ben's DOB is 11-21-1971 and Lisa's DOB is 3-4-1974. Their dependents are: Son Kenny 336-98-7522 DOB 5/25/1996, Daughter Wendy 336-59-8475 DOB 6/21/1999, and Lisa's niece Brenda Kennedy 26598-7415 DOB 2/6/2001 who has been living with the Jackson's since the death of her parents in March of 2016. The Jacksons are the sole means of support for Brenda and Lisa was the sole beneficiary of $650,000 of life insurance benefits from Brenda's parent's estate intended to be used for Brenda's support. The Jackson's have not received any social security payments for Brenda as yet. Interest earned on the life insurance totaled $26,050 for the year from Prudential Insurance and a 1099 was presented. This money is saved for Brenda's education and minimal amounts are used for annual support (less than 50% of her living expenses). Kenny is a fulltime student and his eligible college costs were $16,500. Ben is a computer designer and consultant and he has opened a computer consulting business Blue Ribbon Consultants 165 West Commerce Park, Holt Mi 48842. Ben is a cash basis taxpayer. He started the business on 6-6-2016 and he has had the following expenses in 2016 for which he has the appropriate documentation: Advertising $1,150; Insurance for property and general liability $1,775; Accounting 2,566, Rent $2,200 per month starting June 6; Office Supplies $1,650; Utilities $2,200, Misc. Publications $265, Internet service $830. He also paid an employment service $17,111 for a part time secretary. He traveled to several conventions and spent $2,366 on Hotels and $1,196 on food and he has provided receipts. He also entertained potential clients for $295. He drove to the most of the conventions and paid air expenses of $1,100 for one convention and he rented a car for a total of $396. All travel was over night and domestic. Ben purchased a computer system for $4,900, office furniture for $3,150 and other office equipment for $2,323 when he opened for business. He chose not to apply section 179 of the IRC. He drives a 2008 Chevy sedan (he purchased it used with a cost of $22,560 in 2011 current value is unknown) 100% for business except for some of the miles driven in January, February and March 2016 and he would like the largest deduction for his vehicle. He drove a total of 11,586 business miles including in that total 1,592 miles in March, April and May 2016 when he was preparing to open his business. Total miles for that car for the year were 19,283. He had the following automobile related business expenses: parking $258, interest on financing the vehicle $1,100, license plates of $166, Gas oil and maintenance of $2,140. A mileage log was used to verify the mileage. Business revenue included $31,659 on his books plus the income from a School District reported on a Form 1099 MISC of $42,950 not on his books. The school district was a new client. He made estimated tax payments of $7,100 to the IRS and $3,500 to the State for the year. They paid $3,255 in additional Federal taxes due for 2015 on April 14, 2016 and $1,300 in additional State taxes due on the same date. They sold 300 shares of CMS stock for $13,720 on 6-7-2016 which cost $9,500 on 5-72000 and 100 shares of XCV for $976 on 7-7-2016 for which they paid $1,375 on 1-292009. They also sold 77 Shares of LTV for $11,980 which had a basis of $9,570 purchased on 1/29/2016 and sold on 11/22/2016. They received $1,230 of dividends of which $930 were qualified dividends. They also received $1,100 in interest from Series EE Savings Bonds that they cashed in March 3, 2016 which was used to help start the business. Lisa is a Nurse and she occasionally must work in some of the hospital's specialty clinics. She drove her 2007 van ($27,000 original cost) a total of 32,155 miles of which 5,655 were for traveling to the clinics and 16,345 commuting to her job. The rest was personal use miles. She also incurred $543 in lunch expenses while at the clinics. Her employer does not reimburse Lisa for any expenses. Lisa is still paying on her student loans and she has paperwork indicating that she paid $2,675 in interest on the loans. Lisa also paid $326 for uniforms. Insurance on the van was $2,300 and the License plates cost $266. She bought a new watch for $110 on July 11, 2016 and she wonders if she can claim it as a deduction. The Jackson's had the following personal items: Property tax of $3,655, Mortgage Interest of $11,966 and Private Mortgage insurance of $1,296 on a form 1098, gifts to their church of $6,622 cash, and paid $266 to have their taxes done in 2015. They did not itemize in 2015. They made a gift of $5,000 to Ben's cousin Sid who lives in Portland Oregon. The health insurance premiums on their W2s were pre-tax and they had out of pocket medical, dental, and prescription expenses of $3,760. They traveled 550 miles for medical reasons. Lisa had withdrawn $10,000 from her IRA in 2016 to help pay for the business start-up expenses. Prepare their 2016 Federal tax return (80 pts.) and provide two ways they might save on their taxes in 2017 assuming everything stays the same as in 2016. (10 Points each suggestion as a letter to the Jacksons.) Form 1040 2016 (99) Department of the TreasuryInternal Revenue Service U.S. Individual Income Tax Return For the year Jan. 1-Dec. 31, 2016, or other tax year beginning Your first name and initial OMB No. 1545-0074 , 2016, ending IRS Use OnlyDo not write or staple in this space. See separate instructions. , 20 Last name Ben Your social security number Jackson 215-53-1772 Last name If a joint return, spouse's first name and initial Lisa Spouse's social security number 255-48-9766 Jackson Apt. no. Home address (number and street). If you have a P.O. box, see instructions. Eagle Rd c 1244 City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking Foreign postal code a box below will not change your tax or refund. You Spouse Holt MI 48842 Foreign country name Filing Status Check only one box. Exemptions Foreign province/state/county 1 2 3 6a b Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a W-2, see instructions. Adjusted Gross Income Spouse . Dependents: . Last name Kenny Wendy Brenda Jackson Jackson Kennedy the qualifying person is a child but not your dependent, enter this child's name here. a 5 . . . . . . . . . . (2) Dependent's social security number Qualifying widow(er) with dependent child . . . . . . . . . . . . . . . . . . . (4) \u0014 if child under age 17 qualifying for child tax credit (see instructions) (3) Dependent's relationship to you 336-98-7522 336-59-8475 265-98-7415 Total number of exemptions claimed . } . . Dependents on 6c not entered above . . . . . . . 7 . . . . . . . 8a 134,732. 27,150. . . . . . . . 9a 1,230. . . . . . . . . . . . . . . . . . 930. 10 11 Qualified dividends . . . . . . . . . . . 9b Taxable refunds, credits, or offsets of state and local income taxes Alimony received . . . . . . . . . . . . . . . . . . . 10 11 12 13 14 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . Capital gain or (loss). Attach Schedule D if required. If not required, check here a Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 12 13 14 15a 16a 17 IRA distributions . 15a b Taxable amount . . . Pensions and annuities 16a b Taxable amount . . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 15b 16b 17 18 19 20a Farm income or (loss). Attach Schedule F . Unemployment compensation . . . . Social security benefits 20a 18 19 20b 21 22 Other income. List type and amount Combine the amounts in the far right column for lines 7 through 21. This is your total income 23 Educator expenses 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 25 Health savings account deduction. Attach Form 8889 . 24 25 26 27 28 Moving expenses. Attach Form 3903 . . . . . . Deductible part of self-employment tax. Attach Schedule SE . Self-employed SEP, SIMPLE, and qualified plans . . 26 27 28 29 30 31a Self-employed health insurance deduction Penalty on early withdrawal of savings . . . . . . . . . . 32 33 34 Alimony paid b Recipient's SSN a IRA deduction . . . . . . . Student loan interest deduction . . Tuition and fees. Attach Form 8917 . 29 30 31a . . . . . . . . . . . . 32 33 34 35 36 37 Domestic production activities deduction. Attach Form 8903 35 Add lines 23 through 35 . . . . . . . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . . . . . . . . . 5 . . . Add numbers on lines above a . 8b . . Wages, salaries, tips, etc. Attach Form(s) W-2 . . 3 . Taxable interest. Attach Schedule B if required . Tax-exempt interest. Do not include on line 8a . Ordinary dividends. Attach Schedule B if required . . 2 . 7 . Boxes checked on 6a and 6b No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) Son Daughter Niece 8a b 9a b Head of household (with qualifying person). (See instructions.) If Yourself. If someone can claim you as a dependent, do not check box 6a . (1) First name d Income 4 Married filing separately. Enter spouse's SSN above and full name here. a c If more than four dependents, see instructions and check here a Single Married filing jointly (even if only one had income) Make sure the SSN(s) above and on line 6c are correct. . . . . . . . . . . . . . . . . . . b Taxable amount . . . . . . . . . . . . a 21 22 21,160. 6,231. 190,503. 23 1,495. . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA . . . . . a 36 37 REV 01/25/17 TTW 1,495. 189,008. Form 1040 (2016) Page 2 189,008. Form 1040 (2016) 38 Amount from line 37 (adjusted gross income) Tax and Credits 39a Check if: Standard Deduction for People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. All others: Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,300 If you have a qualifying child, attach Schedule EIC. You were born before January 2, 1952, Spouse was born before January 2, 1952, . . Blind. Blind. . } . . . . . . 38 Total boxes checked a 39a 39b 42 43 Exemptions. If line 38 is $155,650 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . Form 4972 c Tax (see instructions). Check if any from: a Form(s) 8814 b 44 45 46 Alternative minimum tax (see instructions). Attach Form 6251 . Excess advance premium tax credit repayment. Attach Form 8962 47 48 Add lines 44, 45, and 46 . . . . . . . Foreign tax credit. Attach Form 1116 if required . 49 50 51 52 53 54 55 . . . . . . . . . . . . . 48 . . . . . . 52 Residential energy credits. Attach Form 5695 . . . . 53 3800 b 8801 c Other credits from Form: a 54 Add lines 48 through 54. These are your total credits . . . . . Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . . . . . . . . Self-employment tax. Attach Schedule SE . . . . . . . 8919 . . Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . . . . . . . . . . . 58 59 60a Unreported social security and Medicare tax from Form: a b 61 First-time homebuyer credit repayment. Attach Form 5405 if required 67 68 69 70 71 72 75 76a . Household employment taxes from Schedule H . . . . . . 43 44 45 46 47 . . a . . . . 4137 . . . . . . . 67 American opportunity credit from Form 8863, line 8 . Net premium tax credit. Attach Form 8962 . . . . Amount paid with request for extension to file . . . . . . . . . 68 69 70 . . . . b . . . . . . . . . . . . . . 25,001. 2,990. 58 59 60a 60b 61 62 63 27,991. 74 26,060. 3,255. 71 Credit for federal tax on fuels. Attach Form 4136 72 Credits from Form: a 2439 b Reserved c 8885 d 73 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . Excess social security and tier 1 RRTA tax withheld 25,001. 55 56 57 a Health care: individual responsibility (see instructions) Full-year coverage . . . . . Form 8960 c Taxes from: a Form 8959 b Instructions; enter code(s) a Add lines 56 through 62. This is your total tax . . . . . . . . . . . . . 15,705. 64 Federal income tax withheld from Forms W-2 and 1099 . . 7,100. 2016 estimated tax payments and amount applied from 2015 return 65 Earned income credit (EIC) . . . . . . . . . . 66a Nontaxable combat pay election 66b Additional child tax credit. Attach Schedule 8812 . 33,027. 155,981. 20,250. 135,731. 25,001. 40 41 42 49 50 51 Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 19 . . . . . Retirement savings contributions credit. Attach Form 8880 Child tax credit. Attach Schedule 8812, if required . . . . 64 65 66a b . . . . . . . . . a If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 . a 76a Routing number Checking Savings X X X X X X X X X a c Type: X X X X X X X X X X X X X X X X X Account number Amount of line 75 you want applied to your 2017 estimated tax a 77 77 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions a 78 79 Estimated tax penalty (see instructions) . . . . . . . 63. 79 Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. a\u0001 Third Party Designee . . . Direct deposit? See a instructions. Amount You Owe . Itemized deductions (from Schedule A) or your standard deduction (see left margin) Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . 73 74 Refund . 40 41 62 63 Payments . If your spouse itemizes on a separate return or you were a dual-status alien, check here a b 56 57 Other Taxes { . Amount of line 75 you want refunded to you. If Form 8888 is attached, check here b d No Personal identification a number (PIN) Phone no. a Designee's name a 1,994. Sign Here Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Joint return? See instructions. Keep a copy for your records. F Paid Preparer Use Only Your signature Date Your occupation Daytime phone number Spouse's signature. If a joint return, both must sign. Date Spouse's occupation computer consulting Nurse Print/Type preparer's name Firm's name a Firm's address a www.irs.gov/form1040 Preparer's signature Self-Prepared Date (742)851-9632 If the IRS sent you an Identity Protection PIN, enter it here (see inst.) PTIN Check if self-employed Firm's EIN a Phone no. REV 01/25/17 TTW Form 1040 (2016) SCHEDULE A (Form 1040) OMB No. 1545-0074 Itemized Deductions Department of the Treasury Internal Revenue Service (99) a Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. a Attach to Form 1040. Name(s) shown on Form 1040 Ben & Lisa Jackson Medical and Dental Expenses Taxes You Paid 1 2 3 4 5 6 7 8 Interest You Paid Note: Your mortgage interest deduction may be limited (see instructions). 215-53-1772 Caution: Do not include expenses reimbursed or paid by others. Medical and dental expenses (see instructions) . . . . . 189,008. Enter amount from Form 1040, line 38 2 Multiply line 2 by 10% (0.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . State and local (check only one box): a Income taxes, or . . . . . . . . . . . b General sales taxes Real estate taxes (see instructions) . . . . . . . . . Personal property taxes . . . . . . . . . . . . . Other taxes. List type and amount a } 3 . 18,901. . . . . . . 5 10,518. 6 7 3,655. 266. 8 9 Add lines 5 through 8 . . . . . . . . . . . . . . . . 10 Home mortgage interest and points reported to you on Form 1098 10 11 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address a 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . 3,865. 1 11 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . 12 13 Mortgage insurance premiums (see instructions) . . . . . 13 14 Investment interest. Attach Form 4952 if required. (See instructions.) 14 15 Add lines 10 through 14 . . . . . . . . . . . . . . . Gifts to 16 Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . 16 Charity 17 Other than by cash or check. If any gift of $250 or more, see If you made a gift and got a instructions. You must attach Form 8283 if over $500 . . . 17 benefit for it, 18 Carryover from prior year . . . . . . . . . . . . 18 see instructions. 19 Add lines 16 through 18 . . . . . . . . . . . . . . . Casualty and Theft Losses 2016 Attachment Sequence No. 07 Your social security number . . . . . . . 4 0. 9 14,439. 15 11,966. 6,622. 11,966. . . . . . . 6,622. . . . . . . 19 . . . . . . 20 Job Expenses 21 Unreimbursed employee expensesjob travel, union dues, and Certain job education, etc. Attach Form 2106 or 2106-EZ if required. Miscellaneous 21 (See instructions.) a Employee business expenses Deductions 22 Tax preparation fees . . . . . . . . . . . . . 22 2,921. 266. 23 Other expensesinvestment, safe deposit box, etc. List type and amount a Other Miscellaneous Deductions 24 25 26 27 28 23 Add lines 21 through 23 . . . . . . . . . . . . 24 189,008. Enter amount from Form 1040, line 38 25 Multiply line 25 by 2% (0.02) . . . . . . . . . . 26 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . Otherfrom list in instructions. List type and amount a 3,187. 3,780. . . . . . 27 0. 28 29 Is Form 1040, line 38, over $155,650? Total Itemized No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. Deductions } . Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . a For Paperwork Reduction Act Notice, see Form 1040 instructions. BAA REV 01/25/17 TTW . 29 33,027. Schedule A (Form 1040) 2016 SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040A or 1040) (Rev. January 2017) Department of the Treasury Internal Revenue Service (99) a Information a Attach to Form 1040A or 1040. about Schedule B and its instructions is at www.irs.gov/scheduleb. Name(s) shown on return Ben & Lisa Jackson Part I 1 Interest 2016 Attachment Sequence No. 08 Your social security number 215-53-1772 Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. Also, show that buyer's social security number and address a Series EE Savings Bonds Prudential Insurance 1,100. 26,050. (See instructions on back and the instructions for Form 1040A, or Form 1040, line 8a.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. Part II 1 2 3 Add the amounts on line 1 . . . . . . . . . . Excludable interest on series EE and I U.S. savings Attach Form 8815 . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and 1040, line 8a . . . . . . . . . . . . . . Note: If line 4 is over $1,500, you must complete Part III. List name of payer a 5 Dividends . . . . . . . . bonds issued after 1989. . . . . . . . . on Form 1040A, or Form . . . . . . . . a 27,150. 2 3 4 27,150. Amount 1,230. Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Part III Foreign Accounts and Trusts (See instructions on back.) 5 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 6 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . a Note: If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. 7a 1,230. Yes No At any time during 2016, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . . . . . . b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located a 8 During 2016, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If \"Yes,\" you may have to file Form 3520. See instructions on back . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 01/25/17 TTW Schedule B (Form 1040A or 1040) 2016 SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Profit or Loss From Business OMB No. 1545-0074 Name of proprietor 215-53-1772 B Enter code from instructions Principal business or profession, including product or service (see instructions) computer consulting C Attachment Sequence No. 09 Social security number (SSN) Ben Jackson A 2016 (Sole Proprietorship) about Schedule C and its separate instructions is at www.irs.gov/schedulec. a Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065. a Information a 5 4 1 5 1 0 D Employer ID number (EIN), (see instr.) Business name. If no separate business name, leave blank. Blue Ribbon Consultants E Business address (including suite or room no.) F G H Holt, MI 48842 City, town or post office, state, and ZIP code Cash (2) Accrual (3) Other (specify) a Accounting method: (1) Did you \"materially participate\" in the operation of this business during 2016? If \"No,\" see instructions for limit on losses If you started or acquired this business during 2016, check here . . . . . . . . . . . . . . . . . I J Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) . If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . Part I a 165 West Commerce Park . . . . . . . . . . . . . Yes No Yes Yes No No a . . Income 2 3 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the \"Statutory employee\" box on that form was checked . . . . . . . . . a Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 4 5 6 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . . . . . . . 4 5 6 74,609. 7 Gross income. Add lines 5 and 6 . . . a 7 74,609. 1 . . . . . . . . . . . . . . . . . . Expenses. Enter expenses for business use of your home only on line 30. 1,415. 18 Office expense (see instructions) Advertising . . . . . 8 1 74,609. 2 3 74,609. Part II 8 9 Car and truck expenses (see instructions) . . . . . Commissions and fees . 10 11 12 13 Contract labor (see instructions) Depletion . . . . . Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . 14 Employee benefit programs (other than on line 19) . . Insurance (other than health) 15 16 9 10 6,225. 11 12 17,111. 19 20 20a Other business property . . . Repairs and maintenance . . . Supplies (not included in Part III) . 20b 21 22 Taxes and licenses . . . . . Travel, meals, and entertainment: Travel . . . . . . . . . 23 24a 3,862. 25 Deductible meals and entertainment (see instructions) . Utilities . . . . . . . . 24b 25 745. 3,030. 26 27a b Wages (less employment credits) . Other expenses (from line 48) . . Reserved for future use . . . 26 27a 27b a 13 b 21 22 1,430. 23 24 a 14 15 18 Pension and profit-sharing plans . Rent or lease (see instructions): Vehicles, machinery, and equipment b 1,775. 19 17 Interest: Mortgage (paid to banks, etc.) Other . . . . . . Legal and professional services 28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . a 28 29 30 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . 29 a b 16a 16b 17 2,566. . . . . . . . . . . . . Use the Simplified . . . . . . . Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 1,650. 53,449. 21,160. Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 31 . 13,640. If you have a loss, check the box that describes your investment in this activity (see instructions). If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. For Paperwork Reduction Act Notice, see the separate instructions. BAA } } REV 01/25/17 TTW 30 31 32a 32b 21,160. All investment is at risk. Some investment is not at risk. Schedule C (Form 1040) 2016 Page 2 Schedule C (Form 1040) 2016 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If \"Yes,\" attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . Cost a b Lower of cost or market c Other (attach explanation) 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . . 35 36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36 37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37 38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38 39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . 39 40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40 41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42 Part IV . . . Yes . Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. a 43 When did you place your vehicle in service for business purposes? (month, day, year) 44 Of the total number of miles you drove your vehicle during 2016, enter the number of miles you used your vehicle for: a No Business b Commuting (see instructions) Yes No 45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . 46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No 47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No If \"Yes,\" is the evidence written? . . . . . . . . . . . . . . . . . . . . Yes No b Part V 48 . . . . . . c Other Other Expenses. List below business expenses not included on lines 8-26 or line 30. Total other expenses. Enter here and on line 27a . . . . . . . REV 01/25/17 TTW . . . . . . . . . 48 Schedule C (Form 1040) 2016 SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99) OMB No. 1545-0074 Capital Gains and Losses a Name(s) shown on return Attachment Sequence No. 12 Your social security number Ben & Lisa Jackson Part I 2016 a Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. a Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. 215-53-1772 Short-Term Capital Gains and LossesAssets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . 11,980. 9,570. 2,410. 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . Part II 4 5 6 ( 7 ) 2,410. Long-Term Capital Gains and LossesAssets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost (or other basis) (g) (h) Gain or (loss) Adjustments Subtract column (e) to gain or loss from from column (d) and Form(s) 8949, Part II, combine the result with line 2, column (g) column (g) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . 10 Totals for all transactions reported on Form(s) 8949 with 14,696. 10,875. Box F checked . . . . . . . . . . . . . . 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 01/25/17 TTW 3,821. 14 ( 15 ) 3,821. Schedule D (Form 1040) 2016 Page 2 Schedule D (Form 1040) 2016 Part III 16 Summary Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . 16 6,231. If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions a 18 19 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . a 19 20 . . Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) } . . . . . . . . . . . . . . . 21 ( ) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). No. Complete the rest of Form 1040 or Form 1040NR. REV 01/25/17 TTW Schedule D (Form 1040) 2016 Form 8949 Department of the Treasury Internal Revenue Service Sales and Other Dispositions of Capital Assets a a Information about Form 8949 and its separate instructions is at www.irs.gov/form8949. File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. Name(s) shown on return OMB No. 1545-0074 2016 Attachment Sequence No. 12A Social security number or taxpayer identification number Ben & Lisa Jackson 215-53-1772 Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part I Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term transactions, see page 2. Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS (C) Short-term transactions not reported to you on Form 1099-B 1 (a) Description of property (Example: 100 sh. XYZ Co.) 77 shares LTV Adjustment, if any, to gain or loss. If you enter an amount in column (g), (e) (h) enter a code in column (f). Cost or other basis. Gain or (loss). See the separate instructions. See the Note below Subtract column (e) and see Column (e) from column (d) and (f) (g) in the separate combine the result Code(s) from instructions with column (g) Amount of instructions adjustment (c) Date sold or disposed of (Mo., day, yr.) (d) Proceeds (sales price) (see instructions) 01/29/16 11/22/16 11,980. 9,570. 2,410. 11,980. 9,570. 2,410. (b) Date acquired (Mo., day, yr.) 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) a Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 01/25/17 TTW Form 8949 (2016) Attachment Sequence No. 12A Form 8949 (2016) Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side Ben & Lisa Jackson Page 2 Social security number or taxpayer identification number 215-53-1772 Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS (F) Long-term transactions not reported to you on Form 1099-B 1 Adjustment, if any, to gain or loss. If you enter an amount in column (g), (e) (h) enter a code in column (f). Cost or other basis. Gain or (loss). See the separate instructions. See the Note below Subtract column (e) and see Column (e) from column (d) and (f) (g) in the separate combine the result Code(s) from instructions with column (g) Amount of instructions adjustment (c) Date sold or disposed of (Mo., day, yr.) (d) Proceeds (sales price) (see instructions) 300 shares CMS 05/07/00 06/07/16 13,720. 9,500. 4,220. 100 shares XCV 01/29/09 07/07/16 976. 1,375. -399. 14,696. 10,875. 3,821. (a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) a Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. Form 8949 (2016) REV 01/25/17 TTW Form 4562 Depreciation and Amortization OMB No. 1545-0172 Department of the Treasury Internal Revenue Service (99) a Attach a Information to your tax return. about Form 4562 and its separate instructions is at www.irs.gov/form4562. Name(s) shown on return Business or activity to which this form relates Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If separately, see instructions . . . . . . . . . . . . . . . . . . . . (a) Description of property 6 (b) Cost (business use only) Attachment Sequence No. 179 Identifying number Ben & Lisa Jackson Sch C computer consulting Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 2 3 4 5 2016 (Including Information on Listed Property) . . . . . . . . . . . . married . . . 215-53-1772 . . . . . . . . filing . . 1 2 3 4 500,000. 2,010,000. 5 (c) Elected cost 7 Listed property. Enter the amount from line 29 . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . 9 10 Carryover of disallowed deduction from line 13 of your 2015 Form 4562 . . . . . . . . . . . 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 . . . . . . 12 13 13 Carryover of disallowed deduction to 2017. Add lines 9 and 10, less line 12 a Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property.) (See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . 14 15 Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . 15 16 Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . 16 Part III MACRS Depreciation (Don't include listed property.) (See instructions.) Section A 17 17 MACRS deductions for assets placed in service in tax years beginning before 2016 . . . . . . . 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . a Section BAssets Placed in Service During 2016 Tax Year Using the General Depreciation System (a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) 19a b c d e f g h 3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property i Nonresidential real property (d) Recovery period 4,900. 5.0 3,150. 7.0 25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs. (e) Convention (f) Method (g) Depreciation deduction HY HY 200 DB 200 DB 980. 450. MM MM MM MM S/L S/L S/L S/L S/L Section CAssets Placed in Service During 2016 Tax Year Using the Alternative Depreciation System S/L 20a Class life 12 yrs. S/L b 12-year 40 yrs. MM S/L c 40-year Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instructions . 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . 23 For Paperwork Reduction Act Notice, see separate instructions. BAA REV 01/25/17 TTW 21 22 1,430. Form 4562 (2016) Page 2 Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Form 4562 (2016) Part V Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section ADepreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use claimed? 24b If \"Yes,\" is the evidence written? Yes No Yes (c) (a) (b) Business/ (d) Type of property (list Date placed investment use Cost or other basis vehicles first) in service percentage (e) Basis for depreciation (business/investment use only) (f) Recovery period (g) Method/ Convention (h) Depreciation deduction No (i) Elected section 179 cost 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) . 25 26 Property used more than 50% in a qualified business use: Chevvy 2008 06/06/2016 51.83 % % % 27 Property used 50% or less in a qualified business use: S/L - % S/L - % S/L - % 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . 28 29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . . 29 Section BInformation on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other \"more than 5% owner,\" or related person. If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles. (a) Vehicle 1 30 Total business/investment miles driven during the year (don't include commuting miles) . 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven . . . . . . . . . 33 Total miles driven during the year. Add lines 30 through 32 . . . . . . . 34 Was the vehicle available for personal use during off-duty hours? . . . . . 35 Was the vehicle used primarily by a more than 5% owner or related person? . . (b) Vehicle 2 (c) Vehicle 3 (d) Vehicle 4 (e) Vehicle 5 (f) Vehicle 6 9,994 9,289 19,283 Yes No Yes No Yes No Yes No Yes No Yes No 36 Is another vehicle available for personal use? Section CQuestions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren't more than 5% owners or related persons (see instructions). No 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . . 39 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) . Note: If your answer to 37, 38, 39, 40, or 41 is \"Yes,\" don't complete Section B for the covered vehicles. . . Part VI Amortization (a) Description of costs (b) Date amortization begins (c) Amortizable amount (e) Amortization period or percentage (d) Code section (f) Amortization for this year 42 Amortization of costs that begins during your 2016 tax year (see instructions): 43 Amortization of costs that began before your 2016 tax year . . . . . . 44 Total. Add amounts in column (f). See the instructions for where to report . REV 01/25/17 TTW . . . . . . . . . . . . . . 43 44 Form 4562 (2016) Ben & Lisa Jackson 215-53-1772 1 Smart Worksheets from your 2016 Federal Tax Return SMART WORKSHEET FOR: Form 1040: Individual Tax Return Tax Smart Worksheet A 1 2 3 4 5 6 7 B C D E F G H Tax Check if from: Tax table Tax Computation Worksheet (see instructions) Schedule D Tax Worksheet Qualified Dividends and Capital Gain Tax Worksheet Schedule J Form 8615 Foreign Earned Income Tax Worksheet Additional tax from Form 8814 Additional tax from Form 4972 Tax from additional Form(s) 4972 Recapture tax from Form 8863 IRC Section 197(f)(9)(B)(ii) election for an additional tax Health Coverage Tax Credit Recovery, Form 8885, Line 5, if negative Tax. Add lines A through G. Enter the result here and on line 44 25,001. X 25,001. SMART WORKSHEET FOR: Schedule B: Interest and Dividend Income Interest Income Smart Worksheet Payer's Name To access Form 1099-INT Double-Click on payer Box 1 Interest Income Series EE Savings Bonds 1,100.00 Prudential Insurance 26,050.00 Typ Int* Box 2 Early Withdraw Penalty Box 3 US Savings Bond/Treas. Obligations Box 8 Tax-exempt Interest ST ID Box 9 Private Activity Bond Ben & Lisa Jackson 215-53-1772 SMART WORKSHEET FOR: Schedule B: Interest and Dividend Income Dividend Income Smart Worksheet Payer's Name To access 1099-DIV, Double-Click from payer Box 1a Tot Ordinary Dividends Dividends 1,230.00 Box 1b Qualified Dividends Box 2a Capital Gain Distributions Box 2b Unrecap. Sec 1250 Box 3 Nondividend Distributions Box 10 Exempt- int Dividends State Private ID* Actvty Bond 930.00 SMART WORKSHEET FOR: Schedule C (computer consulting ): Profit or Loss from Business Business Address Information Smart Worksheet Business street address 165 West Commerce Park City, State and Zip Code (do not enter State and Zip Code if foreign address) Holt Or, foreign country information: MI 48842 2 Ben & Lisa Jackson 215-53-1772 SMART WORKSHEET FOR: Schedule C (computer consulting ): Profit or Loss from Business Domestic Production Activities Smart Worksheet ? Amounts have been gathered from the Schedule C as a starting point for the Domestic Production Activities deduction calculation. Make adjustments as necessary, taking care not to duplicate amounts on lines B, C and D. Be sure the amount on line E is also included on line(s) B, C and D, as appropriate. ? If you qualify for the deduction, complete the Domestic Production column and the Oil-Related Production column (if applicable). For the small business simplified overall method, enter gross receipts. For the simplified deduction method, enter gross receipts and cost of goods sold. For the Section 861 method, enter all amounts. Total A B C D E Gross receipts Cost of goods sold Directly allocable deductions, expenses, or losses Indirectly allocable deductions, expenses, or losses W-2 wages (adjust for wages from COGS, if necessary) Domestic Production Oil-Related Production 74,609. 53,449. QuickZoom to Form 8903, Domestic Production Activities Deduction SMART WORKSHEET FOR: Schedule C (computer consulting ): Profit or Loss from Business Activity Summary Smart Worksheet Supporting information provided by program. NO ENTRIES ARE NEEDED. Regular Tax A B C D E F G H I J K L M N Ownership At risk status Passive status Schedule C Tentative profit (loss) Other preferences and adjustments At risk disallowed loss Passive carryover loss Passive disallowed loss Net profit (loss) allowed Related Dispositions Tentative profit (loss) At risk disallowed loss Passive carryover loss Passive disallowed loss Net profit (loss) allowed Alternative Minimum Tax Taxpayer All Nonpassive 21,160. 21,160. 21,160. 21,160. 3 TAX RETURN PROJECT 2 Ben and Lisa Jackson have provided you with the posted documents and the following verified information. Ben and Lisa have 3 children and wish to file jointly. Ben's DOB is 11-21-1971 and Lisa's DOB is 3-4-1974. Their dependents are: Son Kenny 336-98-7522 DOB 5/25/1996, Daughter Wendy 336-59-8475 DOB 6/21/1999, and Lisa's niece Brenda Kennedy 26598-7415 DOB 2/6/2001 who has been living with the Jackson's since the death of her parents in March of 2016. The Jacksons are the sole means of support for Brenda and Lisa was the sole beneficiary of $650,000 of life insurance benefits from Brenda's parent's estate intended to be used for Brenda's support. The Jackson's have not received any social security payments for Brenda as yet. Interest earned on the life insurance totaled $26,050 for the year from Prudential Insurance and a 1099 was presented. This money is saved for Brenda's education and minimal amounts are used for annual support (less than 50% of her living expenses). Kenny is a fulltime student and his eligible college costs were $16,500. Ben is a computer designer and consultant and he has opened a computer consulting business Blue Ribbon Consultants 165 West Commerce Park, Holt Mi 48842. Ben is a cash basis taxpayer. He started the business on 6-6-2016 and he has had the following expenses in 2016 for which he has the appropriate documentation: Advertising $1,150; Insurance for property and general liability $1,775; Accounting 2,566, Rent $2,200 per month starting June 6; Office Supplies $1,650; Utilities $2,200, Misc. Publications $265, Internet service $830. He also paid an employment service $17,111 for a part time secretary. He traveled to several conventions and spent $2,366 on Hotels and $1,196 on food and he has provided receipts. He also entertained potential clients for $295. He drove to the most of the conventions and paid air expenses of $1,100 for one convention and he rented a car for a total of $396. All travel was over night and domestic. Ben purchased a computer system for $4,900, office furniture for $3,150 and other office equipment for $2,323 when he opened for business. He chose not to apply section 179 of the IRC. He drives a 2008 Chevy sedan (he purchased it used with a cost of $22,560 in 2011 current value is unknown) 100% for business except for some of the miles driven in January, February and March 2016 and he would like the largest deduction for his vehicle. He drove a total of 11,586 business miles including in that total 1,592 miles in March, April and May 2016 when he was preparing to open his business. Total miles for that car for the year were 19,283. He had the following automobile related business expe