Group Project: This is a group assignment. Each group must have at least two people but no more than four. The tax return and schedules must be submitted at the beginning of the class on the due date.

Simulation Individual Tax AICPA Released

Information

Trevor and Jordan Riley were married during the year 2019. Following is additional information pertaining to the Riley family for the year 2019:

1. The Rileys earned qualified dividends $1,150 from Ford Motor Co. and $430 from Omaha Mutual Fund.

2. The Rileys earned $10,000 in ordinary interest from Chase Bank saving account and $8,500 in municipal bond interest from City of Chicago bonds.

3. Trevors wages were $85,000, and Jordans were $60,000. In addition, Trevors employer provided group term life insurance on Trevors life in excess of $50,000. The value of the excess coverage was $2,000.

4. The Rileys received a $2,000 security deposit on the rental property they actively manage. They are required to return the amount to the tenant. In addition, the Rileys received $20,000 in gross receipts from the rental property. The expenses for the residential rental property were:

Bank mortgage interest $5,000

Real estate taxes 2,600

Insurance 1,700

Depreciation 3,200

5. In January, as part of a sweepstakes contest, Jordan won a weeks stay valued at $3,000 at a luxurious hotel in Hawaii. Trevor and Jordan spent their honeymoon at that hotel.

6. The Rileys had no capital loss carryovers from prior years. During the year, the Rileys had the following stock transactions:

Date Acquired Date Sold Sales Price Cost Basis

Buster Co. 2/1/2016 3/17/2019 $15,000 $5,000

Copper lnc. 2/18/2019 4/1/2019 8,000 4,000

Requirements: complete the Rileys 2019 Form 1040, Schedule 1, Schedule B, Schedule D and Schedule E. They choose to file joint return and use standard deduction of 24,400. They do not claim any tax credits.