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Go to IRS.gov for the following forms to be completed for this tax return: Required: Form 1 0 4 0 , Schedule 1 , Schedule

Go to IRS.gov for the following forms to be completed for this tax return: Required: Form 1040, Schedule 1, Schedule 2, Schedule C, Schedule D, Schedule SE, Form 4797, and Form 8812(USE 2022 Forms) and 2022 Tax tables and 2022 instructions. Most are fillable forms.
Use the following information to complete Phillip and Claire Dunphys 2022 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps.
The forms, schedules, and instructions (click on Forms and Publications on the top bar, then search for 2022 forms) can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.
Facts:
Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent children. All three children live at home with Phillip and Claire for the entire year.
The Dunphys provide you with the following additional information:
The Dunphys do not want to contribute to the presidential election campaign.
The Dunphys live at 3701 Brighton Avenue, Los Angeles, California 90018.
Phillips birthday is 11/5/1976 and his Social Security number is 321-11-5766.
Claires birthday is 5/12/1979 and her Social Security number is 567-11-1258.
Haleys birthday is 11/6/2010 and her Social Security number is 621-11-7592.
Alexs birthday is 2/1/2012 and her Social Security number is 621-11-8754.
Lukes birthday is 12/12/2016 and his Social Security number is 621-11-9926.
The Dunphys do not have any foreign bank accounts or trusts.
Claire is a flight attendant for Western American Airlines (WAA), where she earned $57,000 in salary. WAA withheld federal income tax of $6,375, state income tax of $1,800, Los Angeles city income tax of $675, Social Security tax of $3,600, and Medicare tax of $825.
Phillip and Claire received $300 of interest from State Savings Bank on a joint account. They also received a qualified dividend of $395 on jointly owned stock in Xila Corporation.
Phillips full-time real estate business is named Phillip Dunphy Realty. His business is located at 645 Grove Street, Los Angeles, California 90018, and his employer identification number is 93-3488888. Phillips gross receipts during the year were $730,000. Phillip uses the cash method of accounting for his business. Phillips business expenses are as follows:
Advertising
$ 5,000
Professional dues
800
Professional journals
200
Employee wages
48,000
Insurance on office contents
1,120
Accounting services
2,100
Miscellaneous office expense
500
Utilities and telephone
3,360
Payroll taxes
3,600
Depreciation
To be calculated
On March 20,2022 Phillip moved his business out of the old offices at 1103 Allium Lane into a newly constructed and equipped office on Grove Street. Phillip sold the old office building and all its furnishings. Phillips expenditures for the new office building are as follows:
Date Acquired
Asset
Cost
3/20/2022
Land
$ 300,000
3/20/2022
Office building
2,500,000
3/20/2022
Furniture
200,000
4/1/2022
Computer system
350,000
6/1/2022
Artwork
150,000
Phillip computes his cost recovery allowance using MACRS. He would like to use the 179 immediate expensing, but he has elected to not claim any bonus depreciation. Phillip has never claimed 179 or bonus depreciation before. The assets Phillip sold on March 20 are as follows:
Date Acquired
Asset
Sales Price
Original Cost
Accumulated Depreciation as of Beginning of the Year
5/1/16
Office building
$940,000
$900,000
$129,825
5/1/16
Land
150,000
100,000
0
7/1/16
Furniture
50,000
239,000
206,998
8/13/18
Furniture
10,000
324,000
222,782
4/12/19
Office equipment
100,000
120,000
67,524
5/13/21
Computers
30,000
50,000
10,000
Phillip has never sold any assets relating to his business before this transaction.
Phillip and Claire donated $350 to the Salvation Army during 2022.
The Dunphys sold 60 shares of Fizbo Corporation common stock on September 3 for $65 a share (minus a $50 total commission). The Dunphys purchased the stock on November 8,2021, for $90 a share. They also sold a painting for $13,000 on March 1. Claire purchased the painting for $20,050 on September 1,2014, as an investment.
The Dunphys filed their 2021 federal, state, and local returns on April 13,2022. They paid the following additional 2021 taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75.
The Dunphys made timely estimated federal income tax payments of $10,000 each quarter during 2022. They also made estimated state income tax payments of $1,000 each quarter and estimated city income

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