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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 Schedule Schedule Schedule C Schedule D Schedule SE Form and Form USE Forms and Tax tables and instructions. Most are fillable forms.
Use the following information to complete Phillip and Claire Dunphys 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 forms can be found at the IRS website wwwirs.gov The instructions can be helpful in completing the forms.
Facts:
Phillip and Claire are married and file a joint return. Phillip is selfemployed 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 Brighton Avenue, Los Angeles, California
Phillips birthday is and his Social Security number is
Claires birthday is and her Social Security number is
Haleys birthday is and her Social Security number is
Alexs birthday is and her Social Security number is
Lukes birthday is and his Social Security number is
The Dunphys do not have any foreign bank accounts or trusts.
Claire is a flight attendant for Western American Airlines WAA where she earned $ in salary. WAA withheld federal income tax of $ state income tax of $ Los Angeles city income tax of $ Social Security tax of $ and Medicare tax of $
Phillip and Claire received $ of interest from State Savings Bank on a joint account. They also received a qualified dividend of $ on jointly owned stock in Xila Corporation.
Phillips fulltime real estate business is named Phillip Dunphy Realty. His business is located at Grove Street, Los Angeles, California and his employer identification number is Phillips gross receipts during the year were $ Phillip uses the cash method of accounting for his business. Phillips business expenses are as follows:
Advertising
$
Professional dues
Professional journals
Employee wages
Insurance on office contents
Accounting services
Miscellaneous office expense
Utilities and telephone
Payroll taxes
Depreciation
To be calculated
On March Phillip moved his business out of the old offices at 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
Land
$
Office building
Furniture
Computer system
Artwork
Phillip computes his cost recovery allowance using MACRS. He would like to use the immediate expensing, but he has elected to not claim any bonus depreciation. Phillip has never claimed or bonus depreciation before. The assets Phillip sold on March are as follows:
Date Acquired
Asset
Sales Price
Original Cost
Accumulated Depreciation as of Beginning of the Year
Office building
$
$
$
Land
Furniture
Furniture
Office equipment
Computers
Phillip has never sold any assets relating to his business before this transaction.
Phillip and Claire donated $ to the Salvation Army during
The Dunphys sold shares of Fizbo Corporation common stock on September for $ a share minus a $ total commission The Dunphys purchased the stock on November for $ a share. They also sold a painting for $ on March Claire purchased the painting for $ on September as an investment.
The Dunphys filed their federal, state, and local returns on April They paid the following additional taxes with their returns: federal income taxes of $ state income taxes of $ and city income taxes of $
The Dunphys made timely estimated federal income tax payments of $ each quarter during They also made estimated state income tax payments of $ each quarter and estimated city income
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