Gonsalo runs a business doing car repairs, writes up his taxes on the cash basis, and on the calendar year.

Gonsalo paid $ 27,000 to his landlord on 12-1-2018 for a required advance rent payment on an 18 month lease covering the months 12-1-2018 through 5-31-2020.

Gonsalo paid $ 12,000 on 7-1-2018 for a one year insurance policy covering the months of 7-1-2018 through 6-30-2019. A payment of $ 16,000 was made on 7-1-2019 for a one year policy covering the period of 7-1-2019 to 6-30-2020.

Gonsalo has a business use only credit card, used to purchase supplies. A purchase was charged on 12-30-2018 for supplies of $ 4,000, buying in bulk to receive a quantity discount, and another $6,000 purchase of supplies was charged on 8-1-2019 to fill up the stocks for 2019, and for the early months of 2020. Gonsalo paid the interest on the credit card in the amount of $ 2,500 during 2019 and has paid the principal balance on the credit card down by $ 8,000 so far by the end of 2019.

Finally, on 11-30-2018, Gonsalo signed and gave a note payable to a supplier for $3,000, due to be paid with accrued interest on May 30, 2019 with 6% annual interest. The note has a below market interest rate, and is worth $ 2,950. Gonsalo made the required payment when due. All of the purchased supplies had been used by May 2019.

How much of these payments qualify as tax deductible expenses for Gonsalo during 2019?

2. Melanies mother is changing jobs and offered to sell an office building and used office furniture to Melanie, who is a psychologist. Melanie bought the two items of her mothers on March 25, 2019 for $ 56,700 (office furniture) and $ 917,000 (office building). Both were rented out to a lessee the next day. The rental income is sufficient to generate positive taxable income. Melanie also bought another item, used, from her mom to place into service in the same office building, a computer, and this was bought for $ 27,400 (and placed into service the same day) on 10-25-2019. Melanie did not need to buy any other equipment nor did she place into service any other real or personal property during 2019.

The depreciation Melanie can claim this year 2019 from these three items is?

3. Sandy and Denny are married with three dependent children ages 18, 19, and 20, and own and operate a store, selling masonry materials, although Denny also works part time as an employee at another store selling lumber. The records for the masonry stores current year 2019, revealed the following:

Gross income from sales for the store $ 276,600

Long-term capital gains

(from the sale of land) 7,900

Store operating expenses

Insurance (not health) 39,290

Rent 89,300

Supplies (nonmanufacturing) 35,500

Depreciation (ditto) 48,200

Wages and Payroll taxes 119,200

Also loss from theft of a business car (only business use) purchased originally for $ 40,200, depreciation of $ 12,500 taken so far, but which is now worth $ 34,800, Insurance proceeds from the theft were only $ 11,200.

Other items not related to the masonry business include

Dividend income from Apple Inc., stock 9,500

Interest expense on home mortgage 39,800

Property taxes on home 15,300

Long-term capital gain 7,950

Long-term capital loss 5,600

Dennys Salary (from the other job) 49,100

Sandy and Dennys AGI, taxable income or loss, and net operating loss for the year 2019 are?

1. Reggy and Dwight, ages 40 and 42, are married, have no children, and live in L. A.

Reg has a vacation cabin in Lake Isabella, and Dwight still owns his fathers house in Malibu. Reg works for a music publisher and earned $ 100,000 wages for 2019, while Dwight works for a book publisher and earned $ 80,000 in 2019. The couples w-2s for 2019 also included the following information: federal income tax withholding, Reg $ 4,000, Dwight $ 3,000, for state income tax withholding, Reg, $ 1,400, Dwight, $ 900, for social security withholding, Reg, $6,200,Dwight, $ 4,960, and for medicare withholding, Reg, $ 1,450, Dwight, $ 1,160.

The pair owe mortgage debt on all three homes and all debt is secured by the houses, and all mortgages were taken out prior to 2017. The L.A. home has an $ 800,000 purchase money mortgage on it, with a 5% interest rate. The mortgage payments due to the bank for the house totaled principal payments of $ 7,000, and interest of $41,000. The L.A. home is worth $950,000, and it has an equity loan of $ 100,000 on it also, used to buy a car, with a 5% interest rate, with $ 5,000 interest paid during 2019 for 2019 amounts due. The vacation cabin, worth $300,000 has a $200,000 purchase money mortgage to buy the home, with a 6% interest rate, and thus a $12,000 interest payment annually, which was paid by Dwight during 2019, for 2019. The Malibu home has a value of $ 600,000, and has a home equity loan of $ 250,000, used to buy a yacht, with a 4% interest rate, for which Reg paid interest during 2019 for 2019 in the amount of $ 10,000. The couples real property taxes were all paid on 12-10-2019, for the L.A. home, $ 19,000, for the Malibu home, $ 7,000, and for the cabin, $ 4,000.

The cabin was rented to a friend for ten days in May 2019, for a total rent received by Dwight from the friend of $ 16,000 (the cabin annual utility and repair cost is $ 4,500).

Reg drives a Jaguar, and he paid the license in March of 2019 (license of $ 2,700 including tax based on value of $ 950) for the Jaguar, and in April of 2019, Dwight paid the license for the car he drives, a Morris Gardens of $1,630 (including ad valorem amount of $ 890).

Reg bought a piano as a present for Dwight, and paid a sales tax related to the purchase of $2,000, as the piano price was $ 28,000. Dwight decided he did not feel he needed the piano, so he donated it to the Salvation Army, which promptly sold it to a dealer for cash needed for the charitable purposes. The value of the piano when it was donated was $ 31,000.

Dwight donated (all required documentation, and substantiation requirements were met for both donated items) some Ford, Inc., stock (bought on 12-14-2006 for $32,000 and worth $27,000 when he donated it) to to the Salvation Army, on 12-15-2019.

What are Reg and Dwights refund or amount due for 2019 (including AGI and taxable income for full credit)?