Question
George and Martha Washington ask you to prepare their tax return for 2018. They give you the following information upon which to work. 1) George's
George and Martha Washington ask you to prepare their tax return for 2018. They give you the following information upon which to work.
1) George's social security number is 123-45-6789, while Martha's is 987-65-4321. The have two children: Derrick, ss# 111-11-1111 who is age 8 and Sharon, age 6, whose social security number is 222-22-2222. All four live at 987 Evergreen Lane, Freedonia, FL 10000.
2) George works for Mason Industries, Inc. His Form W-2 is attached. Martha works for St. Joseph's Prep School. Her W-2 is also attached.
3) George and Martha own a brokerage account and a savings account. They earned some interest and dividend income from these. Their Forms 1099 that indicate these amounts are attached.
The W-2s and 1099s can be accessed here:
https://nationalparalegal.edu/uploads/185forms for assignment 3 new.pdf
4) In addition, George and Martha made the following relevant stock transactions:
- They bought 200 shares the stock AAXX on Feb. 1, 2017 for $5,000. On March 10, 2017, they sold all 200 shares for $6,500.
- They bought 500 shares the stock BBX on Feb. 1, 2017 for $10,000. They sold those shares on April 15, 2017 for $12,200.
- They bought 600 shares of the stock CCC on January 15, 2017 for $13,000 and sold those same shares on March 15, 2017 for $12,100.
[Assume that all these numbers include brokerage fees and commissions.]
5) George and Martha own their home and they have a 30-year mortgage loan on their home. In 2017, they paid $8,500 in mortgage interest and $1,900 in property taxes. They also contributed a total of $2,000 in cash to Section 501(c)(3) charities.
6) In addition, George and Martha owned a summer home that they sold this year. They bought the house on December 1, 2007 for $75,000. On January 1, 2017, they sold the same house for $85,000. Assume that they had made $5,000 in capital improvements to the house. You may discount any depreciation that they may have taken in previous years.
How would you make a tax return (Form 1040) and all appropriate schedules for Martha and George.
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Step: 1
Answer To begin I will start with Form 1040 the US Individual Income Tax Return This will be the mai...Get Instant Access to Expert-Tailored Solutions
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