form 8829 and qualified dividends and capital gains tax worksheet

Instructions traction Comprehensive Problem 3-2A (thdate February 2, 1969) and Linda (blithdate August 30, 1974) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 32-1456789). The business is perted out of their home, located at 124 Cherry Lane, Nampa, ID 33687. The principal business code is 561730. Russell's bookeeper provided the following income statement from the landscaping business Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2019 to 12/31/2019 REVENUES $82.350 34,600 17.100 134,050 $71,998 48.576 8,001 128,575 Lawn maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Eugment Rental Maintenance Equipment) Spedal Clothing and Safety Shoes Contract Labor 78.445 5.432 83,433 6,700 12.600 1.300 10,651 8,435 200 6,790 560 7.700 Instructions 660 200 Special Clothing and Safety Shoes 7.780 6,790 Contract Labor 110,953 119,473 TOTAL COST OF SERVICES 17,622 14,577 GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion 1,500 700 Donations 600 500 Insurance 4,000 870 Meals and Entertainment 2.300 2,100 Subscriptions 120 120 Business Gifts 790 600 Telephone 2,015 1,956 Training 1,975 Travel 865 750 Other 1,700 2,724 TOTAL OPERATING EXPENSES 15,865 10,320 NET INCOME (LOSS) (51,288) $7,302 The bookkeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to the Elect Senator Ami Dahla Training indudes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program In tandscaping in order to improve Ws skills and advertise his designation as a certified landscaper. The tuition fees, and books cost $1,400 He also drove his personal car 57 miles round trip to Bolse to take exams three times for a total of 171 miles No business gift exceeded $22 in value The subscription is for a trade magazine titled Plants Unlimited Instructions NET INCOME (LOSS) ($1,288) $7,302 The bookeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. Training indudes $575 for an educational Seminar on bug control. It also includes the cost for Russell to attend an online certificate program in Landscaping in order to improve his skills and advertise his designation as a certified tandscaper. The tuition, fees, and books cost $1,400, He also drove his personal car 57 miles round trip to Bolse to take exams three times for a total of 171 miles No business gift exceeded $22 in value The subscription is for a trade magazine titled Plants Unlimited. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 160 square feet and their house has a total of 1,500 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year, The Longs also have the following interest Income for the year from corporate bonds: Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Long have two dependent children, (Social Security number 123 23 7654) and Martha (Social Security number 345-67-8654). Both B and Martha are full-time high school students, ages 17 and 18, respectively, and each can be daimed for the $500 other dependent credit. Russell's Social Security number is 664-98-5678 and Linda's is 554-983946. They made an estimated tax payment to the IRS of $300 on December 31, 2020. The Longe recrived a $2,400 EIP in 2020, Required: Complete the long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full year health coverage and neithet taxpayer wants to contribute to the presidential election campaign Do not complete Form 4562 (depreciation). You may ignore any related self-employment taxes, Make realistic assumptions about any missing data If required, enter a "lows" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers . If an amount box does not require an entry or the answer is rero, enter"0" Do not found any division. If required, round your final answers to the nearest dollar For 1829 Complete the Longs' Form 29. OMB No 1545-0074 Fun 8829 Expenses for Business Use of Your Home 2020 Department of the File only with Schedule C (Form 1040). Use a separate Form 8829 for each home you Attachment Treasury Internal used for business during the year. Sequence No. 176 Revenue Service (99) Go to www.irs pow/Form8.829 for instructions and the latest information Name) of proprietors) Your social security number Russell Long 664.99-5678 Part 1 Part of Your Home Used for business Lawns and Landscapes 1 Area used regularly and exdusively for business, regularly for daycare, or for storage of Inventory or product 1 samples instructions) 2 Total area of home 2 3 Divide line 1 by line 2. Enter the result as a percentage 3 For daycare facilities not used exclusively for business, go to line 4. All others, go to line 7 4 Multiply days used for daycare during year by hours used per day 4 hr. 5 If you started or stopped using your home for daycare during the years 5 hr Instructions otherwise, enter 3.760 6 Divine 4 by line 5. Enter the result as a decimal amount 7 Business percentage for daycare facilities not used exclusively for business, multiply line by line Center the results a percentage). All others, enter the amount from line 2 Part II Figure Your Allowable Deduction Enter the amount from Schedult line 29, plus any gain derived from the business of your home, mines 6 Form 8829 Part II Figure Your Allowable Deduction Enter the amount from Schedule line 29, plus any gain derived from the business use of your home, minus any loss from the trade or business not derived from the business use of your home. See Instructions See Instructions for columns (a) and (b) before (b) Indirect (a) Direct expenses completing lines 9-22. expenses 9 Chaty losses (see Instruction) 9 10 Deductible mortgage Interest (see instructions) 10 11 Rate (see instructions) 11 12 Add lines 9, 10, and 11 12 13 Milline 12, column) by the 13 16 Add line 12, column() and line 13 14 16 15 Subtract line 14 from info or less enter-0. 16 Excess mortgage leterest (see instructions 17 Els real estate e se instructions) LIS IR 17 1 19 Bet 19 20 21 22 20 pairs and maintenance 21 22 other pentru 2. Add the 16th h 22 24 Multiply fine, column (b), by 25 Carver or your itinu see instructions 24 25 26 27 20 32 33 Tom 25 75 Carryover of prior year operating expenses (e instructions) 26 Add in 23 column (line 24, and line 25 27 Awable conting expenses the smaller of line 15 or line 26 28 maaltyfoes and depreciation. Subtract line 27 from ine 15 29 Escloses Construction) 29 30 Dreation of your home from line 42 below 30 31 Camrywer of year styles and depredation (see instructions) 11 33 As through 33 owat is calles and depresion Enter the smaller of line 26 or line 32 14 Aline 14.2 and 33 3 Cyan, from 14 and 3). Carly amount to form 4684 (instructions) Allowable expenses for business use of your hom. Subtract from line Enter here and on Schedule Cine 30. If your home walsed for more than one businesses instructions Part II Depreciation of Your Home 37 the smaller of your home's a bassor its firmanastruction * Value of land included on line 7 29 Basis of building Subtract from line 37 40 basis of bruilding Multiply line 29 by it * Decation partition) 42. Desetinn allowattese Instruction Multiline by line 11. Et here and on line 30 boven Part IV Carryover of unallowed Expenses to 2021 34 35 36 37 35 39 40 41 42 28 29 30 From 3829 28 Limit on excess Gasty losses and depredation. Subtract line 27 from line 15 29 Excess casualty losses (see Instructions) 30 Depreciation of your home from line 42 below 31 Carryover at prior year excess casualty losses and depreciation (see instructions) 32 Add lines 29 through 31 31 32 33 33 Allowable excess casualty losses and depreciation Enter the smaller of line 28 or line 32 34 35 36 37 38 34 Add lines 14. 27, and 33 35 Casualty loss portion, if any, from lines 14 and 33. Carry amount to form 4684 (see instructions) 36 Allowable expenses for business use of your home. Subtract line 35 from line 34. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions Part III Depreciation of Your Home 37 Enter the smaller of your home's adjusted basis or its fair market value (see Instructions) 38 Value of land induced on line 37 39 Basis of building. Subtract line 38 from line 37 40 Business basis of building. Multiply line 39 by line 7 41 Depreciation percentage (see instructions) 42 Depreciation allowable (see instructions). Multiply line 40 by line 41. Enter here and on line 30 above Part IV Carryover of Unallowed Expenses to 2021 43 Operating expenses. Subtract line 27 from line 26. Il less than zero, enter 0 44 Excess casually losses and depreciation. Subtract line 33 from line 32. 1f less than zero, entero For Paperwork Reduction Act Notice, see your tax return instructions Cat. No 13232M 39 40 41 % 42 43 44 Form 1829 (2020) Qualified Dividends and Capital Gain Tux Worksheet Complete the Russell's Qualified Dividends and Capital Gain Tax Worksheet Russell Long Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Before you begin: See the adier Instructions for line 16 to see if you can use this worksheet to figure your tax Before completing this worksheet, complete Form 1040 or 1040-SR through line 15 If you don't have to file Schedule and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7 1. Enter the amount from Form 1040 or 1040-5R, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet 2. Enter the amount from Form 1040 of 1040-SR, line 3a" 3. Are you filling Schedule ?" Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss enter-O- NO Enter the amount from Form 1040 or 1040-SR, line 1. 2 4. Add Ines 2 and 3 5. If fling Form 4952 used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, entro 5. 6. 7. Qualified Dividends and Capital Gain Tax Worksheet form Otherwise, enter 6. Subtract line from line. 4. If zero or less, enter-O- 7. Subtract line from line 1. It zero or less, enter -6. B. Enter 340,000 if single or married filing separately, $80,000 if married filing Jointly or qualifying widow(er) 553.000 if head of household 3 8. 9. Enter the smaller of line 1 or line 9. 10. Enter the smaller of line 7 or line 9 10. 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. 12. Enter the smaller of line 1 or line 6 12 13. Enter the amount from line 11 13 14. Subtract line 13 from line 12 14. 15. Enter: 3441.450 i single, $248.100 married in separately 5496,600 i marted filling Jointly or qualifying widower), $469,050 if head of household 16. Enter the smaller of line 1 or line 15 15. 16. 17. Add lines 7 and 11 12 13 17 meter 16 Qualified Dividends and Capital Gain Tax Worksheet TU. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter- 18. 19. Enter the smaller of line 14 or line 18 19. 20. 20. Multiply line 19 by 15% (0.15)... 21. Add lines 11 and 19.... 21. 22. Subtract line 21 from line 12 22 23. Multiply line 22 by 20% (0.20) 23 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 24. 25. Add lines 20, 23, and 24 25. 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 26. 27. Tax on all taxable income. Enter the smaller of line 25 of 26. Also include this amount on the entry space on Form 1040 or 1040-SR, Iine 16. If you are fling Form 2555, dont enter this amount on the entry space on Form 1040 of 1040-5R, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27. + 1/ you are filling Form 2555, see the footnote in the Foreign Eamed Income Tax Worksheet before completing this ne. LINI Instructions traction Comprehensive Problem 3-2A (thdate February 2, 1969) and Linda (blithdate August 30, 1974) Long have brought you the following information regarding their income and expenses for the current year. Russell owns and operates a landscaping business called Lawns and Landscapes Unlimited (EIN: 32-1456789). The business is perted out of their home, located at 124 Cherry Lane, Nampa, ID 33687. The principal business code is 561730. Russell's bookeeper provided the following income statement from the landscaping business Lawns and Landscapes Income Statement 12/31/2020 Current Period 1/1/2020 to 12/31/2020 Prior Period 1/1/2019 to 12/31/2019 REVENUES $82.350 34,600 17.100 134,050 $71,998 48.576 8,001 128,575 Lawn maintenance Lawn and plant installation Other TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Eugment Rental Maintenance Equipment) Spedal Clothing and Safety Shoes Contract Labor 78.445 5.432 83,433 6,700 12.600 1.300 10,651 8,435 200 6,790 560 7.700 Instructions 660 200 Special Clothing and Safety Shoes 7.780 6,790 Contract Labor 110,953 119,473 TOTAL COST OF SERVICES 17,622 14,577 GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion 1,500 700 Donations 600 500 Insurance 4,000 870 Meals and Entertainment 2.300 2,100 Subscriptions 120 120 Business Gifts 790 600 Telephone 2,015 1,956 Training 1,975 Travel 865 750 Other 1,700 2,724 TOTAL OPERATING EXPENSES 15,865 10,320 NET INCOME (LOSS) (51,288) $7,302 The bookkeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to the Elect Senator Ami Dahla Training indudes $575 for an educational seminar on bug control. It also includes the cost for Russell to attend an online certificate program In tandscaping in order to improve Ws skills and advertise his designation as a certified landscaper. The tuition fees, and books cost $1,400 He also drove his personal car 57 miles round trip to Bolse to take exams three times for a total of 171 miles No business gift exceeded $22 in value The subscription is for a trade magazine titled Plants Unlimited Instructions NET INCOME (LOSS) ($1,288) $7,302 The bookeeper provided the following additional information: Donations expense is a $600 donation to the Campaign to Re-Elect Senator Ami Dahla. Training indudes $575 for an educational Seminar on bug control. It also includes the cost for Russell to attend an online certificate program in Landscaping in order to improve his skills and advertise his designation as a certified tandscaper. The tuition, fees, and books cost $1,400, He also drove his personal car 57 miles round trip to Bolse to take exams three times for a total of 171 miles No business gift exceeded $22 in value The subscription is for a trade magazine titled Plants Unlimited. The business uses the cash method of accounting and has no accounts receivable or inventory held for resale In addition to the above expenses, the Longs have set aside one room of their house as a home office. The room is 160 square feet and their house has a total of 1,500 square feet. They pay $13,200 per year rental on their house, and the utilities amount to $1,800 for the year, The Longs also have the following interest Income for the year from corporate bonds: Qualified dividends from Potato High Yield Dividend Mutual Fund $44,500 The Long have two dependent children, (Social Security number 123 23 7654) and Martha (Social Security number 345-67-8654). Both B and Martha are full-time high school students, ages 17 and 18, respectively, and each can be daimed for the $500 other dependent credit. Russell's Social Security number is 664-98-5678 and Linda's is 554-983946. They made an estimated tax payment to the IRS of $300 on December 31, 2020. The Longe recrived a $2,400 EIP in 2020, Required: Complete the long's tax return including Form 1040 and the provided schedules and forms. Assume the taxpayers had full year health coverage and neithet taxpayer wants to contribute to the presidential election campaign Do not complete Form 4562 (depreciation). You may ignore any related self-employment taxes, Make realistic assumptions about any missing data If required, enter a "lows" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers . If an amount box does not require an entry or the answer is rero, enter"0" Do not found any division. If required, round your final answers to the nearest dollar For 1829 Complete the Longs' Form 29. OMB No 1545-0074 Fun 8829 Expenses for Business Use of Your Home 2020 Department of the File only with Schedule C (Form 1040). Use a separate Form 8829 for each home you Attachment Treasury Internal used for business during the year. Sequence No. 176 Revenue Service (99) Go to www.irs pow/Form8.829 for instructions and the latest information Name) of proprietors) Your social security number Russell Long 664.99-5678 Part 1 Part of Your Home Used for business Lawns and Landscapes 1 Area used regularly and exdusively for business, regularly for daycare, or for storage of Inventory or product 1 samples instructions) 2 Total area of home 2 3 Divide line 1 by line 2. Enter the result as a percentage 3 For daycare facilities not used exclusively for business, go to line 4. All others, go to line 7 4 Multiply days used for daycare during year by hours used per day 4 hr. 5 If you started or stopped using your home for daycare during the years 5 hr Instructions otherwise, enter 3.760 6 Divine 4 by line 5. Enter the result as a decimal amount 7 Business percentage for daycare facilities not used exclusively for business, multiply line by line Center the results a percentage). All others, enter the amount from line 2 Part II Figure Your Allowable Deduction Enter the amount from Schedult line 29, plus any gain derived from the business of your home, mines 6 Form 8829 Part II Figure Your Allowable Deduction Enter the amount from Schedule line 29, plus any gain derived from the business use of your home, minus any loss from the trade or business not derived from the business use of your home. See Instructions See Instructions for columns (a) and (b) before (b) Indirect (a) Direct expenses completing lines 9-22. expenses 9 Chaty losses (see Instruction) 9 10 Deductible mortgage Interest (see instructions) 10 11 Rate (see instructions) 11 12 Add lines 9, 10, and 11 12 13 Milline 12, column) by the 13 16 Add line 12, column() and line 13 14 16 15 Subtract line 14 from info or less enter-0. 16 Excess mortgage leterest (see instructions 17 Els real estate e se instructions) LIS IR 17 1 19 Bet 19 20 21 22 20 pairs and maintenance 21 22 other pentru 2. Add the 16th h 22 24 Multiply fine, column (b), by 25 Carver or your itinu see instructions 24 25 26 27 20 32 33 Tom 25 75 Carryover of prior year operating expenses (e instructions) 26 Add in 23 column (line 24, and line 25 27 Awable conting expenses the smaller of line 15 or line 26 28 maaltyfoes and depreciation. Subtract line 27 from ine 15 29 Escloses Construction) 29 30 Dreation of your home from line 42 below 30 31 Camrywer of year styles and depredation (see instructions) 11 33 As through 33 owat is calles and depresion Enter the smaller of line 26 or line 32 14 Aline 14.2 and 33 3 Cyan, from 14 and 3). Carly amount to form 4684 (instructions) Allowable expenses for business use of your hom. Subtract from line Enter here and on Schedule Cine 30. If your home walsed for more than one businesses instructions Part II Depreciation of Your Home 37 the smaller of your home's a bassor its firmanastruction * Value of land included on line 7 29 Basis of building Subtract from line 37 40 basis of bruilding Multiply line 29 by it * Decation partition) 42. Desetinn allowattese Instruction Multiline by line 11. Et here and on line 30 boven Part IV Carryover of unallowed Expenses to 2021 34 35 36 37 35 39 40 41 42 28 29 30 From 3829 28 Limit on excess Gasty losses and depredation. Subtract line 27 from line 15 29 Excess casualty losses (see Instructions) 30 Depreciation of your home from line 42 below 31 Carryover at prior year excess casualty losses and depreciation (see instructions) 32 Add lines 29 through 31 31 32 33 33 Allowable excess casualty losses and depreciation Enter the smaller of line 28 or line 32 34 35 36 37 38 34 Add lines 14. 27, and 33 35 Casualty loss portion, if any, from lines 14 and 33. Carry amount to form 4684 (see instructions) 36 Allowable expenses for business use of your home. Subtract line 35 from line 34. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions Part III Depreciation of Your Home 37 Enter the smaller of your home's adjusted basis or its fair market value (see Instructions) 38 Value of land induced on line 37 39 Basis of building. Subtract line 38 from line 37 40 Business basis of building. Multiply line 39 by line 7 41 Depreciation percentage (see instructions) 42 Depreciation allowable (see instructions). Multiply line 40 by line 41. Enter here and on line 30 above Part IV Carryover of Unallowed Expenses to 2021 43 Operating expenses. Subtract line 27 from line 26. Il less than zero, enter 0 44 Excess casually losses and depreciation. Subtract line 33 from line 32. 1f less than zero, entero For Paperwork Reduction Act Notice, see your tax return instructions Cat. No 13232M 39 40 41 % 42 43 44 Form 1829 (2020) Qualified Dividends and Capital Gain Tux Worksheet Complete the Russell's Qualified Dividends and Capital Gain Tax Worksheet Russell Long Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Before you begin: See the adier Instructions for line 16 to see if you can use this worksheet to figure your tax Before completing this worksheet, complete Form 1040 or 1040-SR through line 15 If you don't have to file Schedule and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7 1. Enter the amount from Form 1040 or 1040-5R, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet 2. Enter the amount from Form 1040 of 1040-SR, line 3a" 3. Are you filling Schedule ?" Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss enter-O- NO Enter the amount from Form 1040 or 1040-SR, line 1. 2 4. Add Ines 2 and 3 5. If fling Form 4952 used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, entro 5. 6. 7. Qualified Dividends and Capital Gain Tax Worksheet form Otherwise, enter 6. Subtract line from line. 4. If zero or less, enter-O- 7. Subtract line from line 1. It zero or less, enter -6. B. Enter 340,000 if single or married filing separately, $80,000 if married filing Jointly or qualifying widow(er) 553.000 if head of household 3 8. 9. Enter the smaller of line 1 or line 9. 10. Enter the smaller of line 7 or line 9 10. 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. 12. Enter the smaller of line 1 or line 6 12 13. Enter the amount from line 11 13 14. Subtract line 13 from line 12 14. 15. Enter: 3441.450 i single, $248.100 married in separately 5496,600 i marted filling Jointly or qualifying widower), $469,050 if head of household 16. Enter the smaller of line 1 or line 15 15. 16. 17. Add lines 7 and 11 12 13 17 meter 16 Qualified Dividends and Capital Gain Tax Worksheet TU. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter- 18. 19. Enter the smaller of line 14 or line 18 19. 20. 20. Multiply line 19 by 15% (0.15)... 21. Add lines 11 and 19.... 21. 22. Subtract line 21 from line 12 22 23. Multiply line 22 by 20% (0.20) 23 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 24. 25. Add lines 20, 23, and 24 25. 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 26. 27. Tax on all taxable income. Enter the smaller of line 25 of 26. Also include this amount on the entry space on Form 1040 or 1040-SR, Iine 16. If you are fling Form 2555, dont enter this amount on the entry space on Form 1040 of 1040-5R, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27. + 1/ you are filling Form 2555, see the footnote in the Foreign Eamed Income Tax Worksheet before completing this ne. LINI