Forms required

Form 1040

Schedule A

Schedule B

Schedule C

Schedule D

Form 8949 (2 transactions)

Schedule E (Rental and S-Corp.)

Schedule SE

Section 10:

• Enter the Grubstake information through Documents Received/S-Corporation K-1.
• If you have to override this, it is fine.
• She owns 1% of the S-Corporation, so her share of the income is $2,000.
• Enter her ownership percentage (K-1 Line F), her share of the income (K-1 Line 1), and then the distribution (on Schedule K-1 Line 16 D).
• You do not need any more of the information given in Section 10.

Section 11:

• The only thing you need on this section is the disability pay that was already entered per Sections 3 and 4 above.

Section 12:

• Enter both sale transactions through Form 1040 Line 13.

Section 13:

• Enter federal estimates through Form 1040 Line 65.
• Enter state estimates through Schedule A. Notice the 4^th quarter estimate payment date.

Section 14:

• Include the state tax refund on Line 10 of Form 1040. Disregard federal tax info since it is from last year?s taxes.

Section 15:

• Enter the number of fair rental days on Schedule E. Do not enter personal use days.
• Big hints: The rents received should be $2,400 total, and you should have $300 in repairs expense.
• OVERRIDE depreciation on Schedule E as $1,080. Disregard the note about the value of the land.

Check Figures:

Line 22 = $72,815

Line 37 = $70,409

Line 43 = $44,760

Line 57 = $1,211

Line 75 = $1,695