Hi, I do need help with doing my homework. In order to complete the requirements of this project, you will prepare a tax return for the Smith family. The information you will need for the tax return is listed below. You will find all the forms and tax tables you need for this project at the IRS web site

(http://www.irs.gov). Depending on when you complete your project, you may needto locate the forms under the heading of prior year (https://www.irs.gov/forms-pubs/prior-year).

Note, in any case you will not be penalized if you need to use the forms andtables for a more recent tax year. Just make sure that the forms, instructions, andtables are consistent for one tax year.

Project Details: The Smith Family

David and Hope Smith are married and have two children, Katelyn and Cory. Theyall live at 134 Crystal Lake Road, New Hope, PA 18938.

The Smith family had health care coverage provided by David's employer for theentire year of 2018.

Earnings

• David's earnings and tax withholdings for 2018 can be found on his W-2.
• Hope's earnings and tax withholdings for 2018 can also be found on herW-2.
• Hope was laid off in 2018 and received $27,755 in unemployment benefitsand had $2,793 Federal income tax withheld.

Federal income tax withheld

• Hope also started a small consulting business in 2018. The businessclassification is "Other Finance and Investment Activities." The 2018 grossincome and expenses for the business are listed below:

Gross Receipts $3,427

Expenses

Office Expense 495

Lodging 434

Baggage 50

Parking 45

Hope also drove 225 business miles and 15,000 personal miles.

Dividends and Interest Income

David and Hope received $316 in certificate of deposit interest income fromPrudential and $3,328 of dividend income from Fidelity Brokerage Services, ofwhich $2,698 was qualifying dividend income. In addition, there was $53 ofcapital gain distributions and $60 in foreign taxes withheld. A copy of David andHope's 2017 1099 INT and 1099 DIV can be found in the tax documents sectionbelow. Note: Neither David nor Hope has any interest or signatory authority overa foreign bank account. Be sure to check the correct boxes on the bottom of yourSchedule B to ensure compliance.

Retirement Distributions

Hope directly rolled over $87,769.45 into a qualified IRA. A copy of her 1099-R canbe found in the tax documents section.

Schedule A?Itemized deductions

The Smith family has the following itemized deductions:

• State and Local Income Taxes?This information can be found on theirW-2s. In addition, David and Hope paid an additional $172 in state taxes in2018 for their 2017 state tax liability.
• Real Estate Taxes paid in 2018?$3,296
• Home Mortgage Interest for 2018?$4,116 (reported on Form 1098)
• Cash Contributions for 2018?$825
• Non-cash Contributions for 2018?Thrift Store Value $2,625. The following information is what you will need to fill out the form for non-cashcontributions.
• The contribution was 8-12-2018
• Date acquired?various
• How acquired?purchased
• Donor's cost?adjusted basis?N/A

Schedule D?Capital Gains and Losses

The Smith family had a short term capital loss carryover of $2,169 from 2017.Hint:Remember to also look at the Capital Gains Dividend on Schedule 1099 DIV for2018.

Schedule E?Rental Property

The Smiths purchased an investment rental property in 2018. Details relatingto the property transaction can be found in the tax documents section. Thedepreciation schedule needed to calculate depreciation can be found in thetax documents section.Note:Remember to complete 8582 Passive Activity LossLimitations.

Tax Calculation

Hint:When calculating the tax liability on line 44 of the 1040, be sure to take intoconsideration the qualified dividends. When you complete this project, your taxrefund should be $3,756.

David & Hope Smith

Rental Property

542 Route 247

New Hope, PA 18938

2018

The Smiths purchased a rental property on 5-15-18. The property was placed intoservice on 7-1-18. All of the property's expenses are listed below. You will needto break the expenses down into capitalized costs which need to be added tothe basis of the house and depreciated and regular expenses. All expenses arealready pro-rated to only include the portion attributable to 2018.

Basis:Purchase Price Purchase date (5-15-18)110,000.00

Less Land(25,000.00)

Basis (before the addition of capitalized expenses)85,000.00

Rent 950.00 x 6 5,700.00

Expenses:Annual 2018 Association Dues 600.00

Legal-Acquisition Cost 500.00

RE Taxes 1,055.52

Title Insurance 908.75

School Taxes 1,630.68

Recording Fee 65.00

Transfer Tax 550.00

Sewer 300.00

Repairs 981.84

Insurance 550.00

Mold Inspection 250.00

Misc.111.95

Depreciation1,451.00

Thank you! Looking forward to your reply, please let me know if you need any aditional information.

Table C-General Depreciation System Method: Straight line Convention: Mid-month Recovery period: 27.5 years The month in the ist recovery year the property is placed in service: Year 2 3 5 6 7 B 9 10 11 12 3.485% 3.182% 2879% 2.576% 2.273% 1.970% 1.657% 1.3649% 1.0619% 0.758% 0.4556 0.1529% 3.636% 3.635% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 2-9 10,12,14,16,18,20. 22. 24, 26 3.637% 3.637% 3.637% 3.6379% 3.63796 3.63796 3.636% 3.6366 3.636% 3.636% 3.636% 3.636% 11,13,15,17,19. 21. 23, 25, 27 3.6369% 3.636% 3.636% 3.636% 3.636% 3.636% 3.637% 3.637% 3.6379% 3.637% 3.637% 3.637% 28 1.97% 2.273% 2.576% 2.879% 3.182% 3.485% 3.636% 3.636% 3.636% 3.636% 3.63696 3.636%a. Employee's SSN: Void 123-45-6789 F Do NOT carry SSN from Background Wkst Note: We do not carry ITINs from the Background Worksheet. You need to manually enter the Social Security number shown in box a of this W-2 Employer ID No. 1. Wages, etc. 2. Fed Tax WH 99-9999999 79,249 12, 374 c. Employer/payer name, address, 3. Soc Sec Wages 4. SocSec Tax WH and zip code: 96, 249 5,967 Name1: Martin Aerospace Name2: 5. Med. Wages 6. Med. Tax WH Street 40 Aerospace Drive 96, 249 1, 396 City: New Hope State: PA ZIP: 18938 7. Soc Sec Tips 8. Alloc. tips Check if foreign address. Note: See help panel for special data entry instructions. d. Control Number 9. 10. Depndnt Care e. Employee's name (1st, MI, last, Jr) 11. Nonqual 12. See instrns. David J plans Code Amt. Smith C 106 Do NOT carry name from Bkgd Wkst D 17, 000 DD 16, 124 Employee's address and ZIP code 13. Statutory Add1: 134 Crystal Lake Road employee . . I Add2: Retirement Apt No. plan . . . . . . P Town/City New Hope Third party State & ZIP PA 18938 sick pay . . . Note: If you have F Do NOT carry addr from Bkgd Wkst a Code P amount, complete the additional info. section below. Note: To e-file your address and 14. Other Description Other Amt. your employer's address must be entered exactly as it appears on the W-2. 15. Employer State 16. State 17. State 18. Local 19. Local 20. Locality State Tax ID # Wages Tax Wages Tax Name PA 99-9999999 95, 844 2, 942 96, 201 962 New Hopea. Employee's SSN; Void 234-56-7890 Do NOT carry SSN from Background Wkst Note: We do not carry ITINs from the Background Worksheet. You need to manually enter the Social Security number shown in box a of this W-2. b. Employer ID No. 1. Wages, etc. 2. Fed Tax WH 99-9999999 50,568 12 , 042 c. Employer/payer name, address, 3. Soc Sec Wages 4. SocSec Tax WH and zip code: 50, 568 3, 135 Name1: The Forumn Name2: 5. Med. Wages 6. Med. Tax WH Street 5101 Mountain Road 50, 568 733 City: New Hope State: PA ZIP. 18938 7. Soc Sec Tips 8. Alloc. tips Check if foreign address. Note: See help panel for special data entry instructions. d. Control Number 9. 10. Depndnt Care e. Employee's name (1st, MI, last, Jr) 11. Nonqual 12. See instrns. Hope K plans Code Amt Smith C 8 8 Do NOT carry name from Bkgd Wkst Employee's address and ZIP code 13. Statutory Add1: 134 Crystal Lake Road employee . . Add2: Retirement Apt No. plan . . . .. . Town/City New Hope Third party State & ZIP PA 18938 sick pay . . . C Note: If you have IF Do NOT carry addr from Bkgd Wkst a Code P amount, complete the additional info. section below. Note: To e-file your address and 14. Other Description Other Art. your employer's address must be OTHER 40 entered exactly as it appears on the W-2. 15. Employer State 16. State 17. State 18. Local 19. Local 20. Locality State Tax In # Wages Tax Wages Tax Name PA 99-9999999 50, 481 1, 550 50, 481 858 New HopeCORRECTED (if checked) PAYER'S name, street address, city, state, ZIP code, and telephone pu. Payer's RIN joptional) OND No. 1545-0112 Prudential P.O.41582 1 Interest Income Pulladelphia, PA 19176 $ 316.00 2017 2 Early willdanval penalty Interest Income S For 1099-INT PAYER'S federal identification number RECIPIENT'S idonlifention number 3 Interest on U.S. Savings Bonda and Treas. obligations Copy B 29-9090909 123-30303000 5 For Recipient RECIPIENT'S name 4 Federal income tax withheld 5 Investment mepences The is Important fox David J. Smith & Hope K. Smith information and la being finished to the bodemal Street address (nduding opt. no) 0.00 Revenue Service. I you 134 Crystal Lake Road I Faga county or US. possession wee required to ton G Forelgin tax paid relum, a neg gence City, lolo, and ZIP code S penalty or other canction may be imposed on you ! How Hope, PA 18938 8 Tax-exempt interest 9 Specialed pirate schilly bond beterent this income is tacable and the RS delemmings tal it $ Izes not been reported Account number (one inchructions) 10 Tow-mompl bond CUSIP no. |11 State 12 Stale Blendification not 13 Stain toy withhallCORRECTED (if checked) PAYER'S name. street address. city. state. ZIP ondo, and telephone no. 1a Tolal ordinary dividends OMB No. 1545-0110 Fidelity Brokerage Services, LLC $3.327.53 Dividends and PO Box 673000 1b Qualified dividends 2017 Distributions Dallas, TX 75267-3000 $ 2 698.46 Form 1090-DIV 2x Tolal capital gain distr 2h Uprecap. Sec. 1250 gain $ 52.66 Copy B RECIPIENT Sidentification 2c Section 1202 gain For Recipient PAYER'S federal identification 2d Collectibles (287%) gain number Ddiniber 23-8989939 123-30CXXX $ RECIPIENT'S name 3 Nomdividend distributions 4 David J. & Hope K. Smith S This is important tax information and is 5 Investment expenses being furnished to the Internal Revenue 6 Foreign fax paid 7 Foreign country or U.S. possession Service. If you are Street address (including apt. no) required to file a 134 Crystal Lake Road relum, a noglgence $60:00 penally or other sanction may be City, state, and ZIP code & Cash liquidation distributions 9 Noncash Typhoon dellbutons imposed on you if New Hope, PA 18938 this income is taxable and the IRS Account number (sea instructions) determines that it has not been reported.VOID CORRECTED PAYER'S name, street address, city, state, and ZIP code 1 Gross distribution OMB No. 1545-0119 Distributions From Pensions, Annuities, State Street Investments 902 Commerce Drive $ 87,769.45 2017 Retirement or 2a Taxable amount Profit-Sharing Dallas, TX 78758 Plans, IRAs, Insurance $ 0.00 Form 1099-R Contracts, etc. 2b Taxable amount Total not determined distribution X Copy 1 For PAYER'S federal identification RECIPIENT'S identification 3 Capital gain (included 4 Federal income tax State, City, number number in box 2a) withheld or Local 23-9999999 234-XX-XXXX Tax Department $ $ RECIPIENT'S name 5 Employee contributions 6 Net unrealized /Designated Roth appreciation in Hope K. Smith contributions or employer's securities insurance premiums S $ Street address (including apt no.) Distribution IRA 8 Other 134 Crystal Lake Road code(s) SEP/ G SIMPLE $ % City, state, and ZIP code 9a Your percentage of total 9b Total employee contributions New Hope, PA 18938 distribution % $ 10 Amount allocable to IRR 11 ist year of desig Roth contrib 12 State tax withheld 13 State/Payer's state no. 14 State distribution within 5 years $ $ Account number (see instructions) 15 Local tax withheld 16 Name of locality 17 Local distribution $ $ Form 1099-R www.irs.gow/form1099r Department of the Treasury - Internal Revenue Service