Question
Hello! I need help with problem 8-64 for Federal Taxation Individuals 2016, by Thomas J. Rupert, Thomas R. Pope, and Kenneth E. Anderson. ISBN-978-0-13-410590-1. This
Hello! I need help with problem 8-64 for Federal Taxation Individuals 2016, by Thomas J. Rupert, Thomas R. Pope, and Kenneth E. Anderson. ISBN-978-0-13-410590-1.
This is the problem from the textbook: "Heather and Nikolay are married and file a joint income tax return. Their address is 3847 Jackdaw Path, Madison WI 58493. Nikolay's SSN is 000-00-1111 and Heather's is 000-00-2222. Nikolay is a mechanical engineer, and Heather is a highly renowned speech therapist. She is self-employed. They report all their income and expenses on the cash method. For 2014, they report the following items of income and expense:
Gross Receipts from Heather's business $ 110,000
Rent on Heather's office 12,000
Receivables written off during the year (received in Heather's business) 1,300
Subscriptions to linguistic journals for Heather 250
Salary for Heather'ssecretary- receptionst 22,000
Nikolay's Salary 78,000
Qualified Medical Expenses 12,000
Property taxes on their personal residence 4,200
State income tax refund received this year (the tax benefit was
received in the prior year from the state income tax deduction) 400
State income taxes withheld on Nikolay's salary 4,600
Federal income taxes withheld on Nikolay's salary 12,000
Heather's estimated tax payments 20,000
Interest paid on residence 11,000
Income tax preparation fee for the prior year's return paid
this year ($ 500 is allocated to preparatin of Scheduke C) 940
Heather and Nikolay sold the following assets:
Asset | Acquired | Sold | Sales Price | Cost |
KNA Stock | 2/12/13 | 3/13/14 | $ 14,000 | $ 8,000 |
AEN Stock | 3/2/14 | 7/7/14 | 20,000 | 22,000 |
KLN Stock | 6/8/09 | 4/10/14 | 13,000 | 17,000 |
Motorcycle | 5/3/06 | 9/12/14 | 2,500 | 6,000 |
Heather owned the KLN stock and sold it to her brother, Jacob. Heather and Nikolay used the motorcycle for personal recreation.
In addition to the items above, they donate Miner Corporation stock to their community church. The FMV of the stock on the date it is donated (8/18/14) is $ 6,200. It cost $ 2,700 when purchased 3/12/96. Heather and Nikolay's home is burglarized during the year. The burglar stole an enetrtainment system (FMV $ 3,500; cost $ 5,000), an antique diamond ring and endant (FMV $ 12,000; cost $ 10,000), and a painting (FMV $ 1,500; cost $ 1,300). The insurance company pays $ 1,500 for the entertainment system, $ 4,000 for the jewerly, and $ 500 for the painting. Complete Heather and Nikolay's Form 1040, Scedule A,C,D , and SE, Form 8949, Form 4684, Form 8283, and Qualified Dividents and Capital Gain Tax Worksheet. For purposes of this problem, disregard the alternative minimum tax and any credits.
Thank you!
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