Question
For your seventh client, your boss wants you to prepare Form 1040, Schedules A, B, D and supporting forms (8949, 4684, 4797 if needed) for
For your seventh client, your boss wants you to prepare Form 1040, Schedules A, B, D and supporting forms (8949, 4684, 4797 if needed) for Christina Hunter.
Facts: Christina is a 30-year old single woman who works full time as a hair stylist and part time as the hair stylist at a local theater company. No one else can claim Christina as a dependent. For last year, she had the following information:
Taxpayer | Christina Hunter 123 Candy Land Lane Cantonment, FL 33400 | |
Social Security No. | 123-45-6789 | |
INCOME: | ||
W-2 from 1st employer Gross wages income: |
$13,164 | |
Federal Withholding | 921 | |
W-2 from 2d employer Gross wages: |
50,000 | |
Federal withholding | 9,500 | |
Interest income from bank | 132 | |
Interest income from brokerage firm | 2,100 | |
Ordinary "qualified" dividends from large U.S. corporation | 3,000 | |
She sold the following assets during last year: | ||
1,000 shares of General Motors stock originally purchased January 1, 2010 for $10,000 and sold July 1 of last year for: | 16,000 | |
500 shares of Facebook stock originally purchased February 1 of last year for $8,000 and sold August 1 of last year for: | 6,000 | |
Car on Craigslist originally purchased July 13, 20X7, for $25,000 and sold October 1 of last year for:
| 9,000
| |
|
| |
Her fishing boat, originally purchased July 1, 20X7 for $3,000 and sold November 1 of last year for: | 4,000 | |
POSSIBLE DEDUCTIONS | ||
Mortgage interest paid | 6,700 | |
State and local income taxes paid | 1,400 | |
Charitable contributions to a 501(c)(3) charity | 1,800 | |
Casualty loss, her storage shed was destroyed in a hurricane, in a federally certified disaster area. Cost and fair market value were both: | 9,000 | |
Insurance pay out for the shed: | 3,000 | |
Property taxes on her home: | 2,600 | |
Using the facts above, prepare Form 1040, Schedules A, B & D for Christina for the most recent year for which there is a form.
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