Hi,

I need help with a tax project using ProSeries

ACC4301{21481) Individual Income Taxation Individual Income Tax Project Spring 2018 Instructions: Please complete the 2016 federal income tax return for Joseph and Diana Cohen. Ignore the requirement to attach the form{s} W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to ll in the gaps and include those assumptions in a cover page accompanying your submission of this project. Assignment Preparation Options: The Income Tax Return may be prepared manually, using the ProSeries 2016 software available on many UHD computers, or any other Federal Income Tax software to which you may have access. The ProSeries software may be accessed on the Network System in the Computer Center on the eight floor (South) at the University of Houston-Downtown One Main building, the second oor classrooms in the Davies College Of Business Building, or on the personal computers at UHD-Northwest campus at Lone Star College-University Park. If you choose to prepare the Income Tax (or Information} Return using the ProSeries 2016 software there is a new login requirement for every user. You must be granted access to log into the software and that access must be granted by Dr. Marvin Williams. To facilitate the access granting process, please send Dr. Williams at "williamsm@uhd.edu" the following email message (inserting your correct information in the bold/underlined item}: "My name is JOHN DOE and I am a student in Professor Thomas Jackson's Individual Income Taxation (ACC4301) class. I would like to have access to the ProSeries 2016 Version Software for purposes of completing class assignments." In the subject line, please use "ProSeries 2016 access request UHD Downtown Campus" or "UHD Northwest Campus." Please be sure to specify at which campus you will require access as ProSeries has assigned different account numbers for each. When your access has been granted you will have to create your own username and password. You will then be able to access the ProSeries software from any personal computer in the Computer Center that is connected to the Network System at the University Of HoustonDowntown Campus or on the personal computers on the personal computers at UHD-Northwest at Lone Star College-University Park. Please be sure to have a device available to you that will allow you to save your data. To assist you in using the ProSeries software, an operator's manual is available in the Computer Center (or at UHD Northwest at Lone Star College-University Park}. IMPORTANT - DEFAULT SETTINGS PLEASE DO NOT ALTER ANY OF THE DEFAULT SETTINGS IN THE SOFTWARE. If you have questions, need additional information or would like to discuss any aspect of this assignment further, please contact me by email at '|acksonth@uhd.edu. Thank you for your attention to this matter and Good Luck with the assignment. Forms Required: I 1040 - U.S. Individual Income Tax Return I Schedule A Itemized Deductions I Schedule B Interest and Ordinary Dividends I Schedule C - Prot and Loss From Business I Schedule D -Capital Gains and Losses I 8949 Sales and Other Dispositions of Capital Assets I Schedule SE Self- Em ployment Tax I 6251 Alternative Minimum Tax-Individuals I 8532 Passive Activity Loss Limitations Check gures: Please use the following as indicators as to whether you are on the correct path. Please do not be concerned about small differences between these and the results you get. Dierent tax preparation software packages often give slightly different results. Total Income {Line 22) 208,321 Adjusted Gross Income (Line 37} 205,122 Total Tax (Line 63} 29,557 Amount you owe (Line 78} 327 Assignment Submission Options: It is imperative that, when ready, you submit the project after combining all forms and schedules into a single .pdf document. Please upload it using Blackboard. You should name the le ACC4301(XXXXX) Fall 2017 Your Name Now, let's begin the assignment by carefully reviewing the following facts: Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a small start-up company. Diana is a former advertising executive who currently consults with former clients. She also serves on the board of directors of an advertising company. The Cohens have three children Rebecca {age 18}, Alan {age 15}, and David {age 12}. In January, Rebecca left home to attend a liberal arts college. All three children qualify as Joseph and Diana's federal income tax dependents. The Cohens plan to file ajoint tax return. The Cohens provided the following information: 0 Joseph's social security number is 598-94-2583 - Diana's social security number is 301-52-2942 - Rebecca's social security number is 887-448710 o Alan's social security number is 810-42-9092 - David's social security number is 855-11-3021 o The Cohen's mailing address is 85 North Maple Drive, Pleasantville, New Jersey 08233 Joseph Cohen reported the following thefollowing information relating to his employment during the year: Employer Gross Wages Federal Income Tax State Income Tax Withhoiding Withholding Alternative Enery $118,325 $29,230 $15,000 The above amounts do not reflect any income items described below. Joseph's employer withheld all payroll taxes it was required to withhold. The entire Cohen family was covered by minimum essential health insurance during each month in 2016. The insurance was provided by Joseph's employer, Alternative Energy. Diana Cohen received the following revenue during the year {she uses the cash method of accounting}. Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $8,500 Strategic Solutions $3,750 Board of director compensation reported to her on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $6,500 During the year, Diana paid the following business expenses: Consultant-related: Airfare $2,900 Hotel SL450 Meals $390 Parking $320 Diana drove 290 business miles for her consulting-related activities {she has documentation to verify} Board of Director-related: Meals $125 Hotel $225 Diana drove 315 business miles for her board of director activities (she has documentation to verify} Neither of Diana's business activities required the ling of Form(s) 1099 to report payments she made during the tax year. In addition, Ms. Cohen drove a 2014 Lexus purchased on January 1, 2014 for all her business mileage. She drove the vehicle a total of 10,605 miles during the year for all purposes. Diana has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes. The Cohens also received the following during the year: Interest income from First Bank of New Jersey $320 Interest income from Patterson, New Jersey School District $200 Interest income from U.S. Treasury Bond $350 Interest income from General Mills corporate bond $400 Qualified dividend income from Rio Tinto $1,500 Qualied dividend income from Microsoft $750 Qualified dividend income from Cooper Tire $200 Qualied dividend income from Cardinal Health $425 Qualified dividend income from Union Pacic $140 Qualied dividend income from Procter 8L Gamble $190 Qualified dividend income from PepsiCo $225 Qualied dividend income from Kellogg $200 Qualified dividend income from Abbott Labs $275 Qualied dividend income from 3M $350 Dividend income (not qualified} from China Fund $2,000 The Cohens did not own, control or manage any foreign bank accounts, nor were they grantors or beneciaries of a foreign trust during the tax year. The Cohens had the following activity in their brokerage account during the year {all transactions were reported on a Form 1099-3. Basis information on each stock sale was reported to the IRS}: Sold 2,000 shares of Microsoft 7/1/16 $22,500 Sold 75 shares of Apple, Inc. 4/15/16 $28,750 Sold 350 shares of Cooper Tire 10/14/16 $14,700 Sold 1,000 shares of Cardinal Health 9/3/16 $35,000 Sold 50 shares of Union Pacic 1/7/16 $2,750 Purchased 100 shares of Procter 8L Gamble 7/10/16 $7,700 Purchased 350 shares of Cooper Tire 11/1/16 $14,000 Purchased 350 shares of PepsiCo 5/14/16 $32,000 Purchased 300 shares of Kellogg 10/14/16 $21,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/16 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/14 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/13 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/16 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/00. Her father's basis in the stock at the time of the gift was $7,000. Fair market value ofthe stock at the date of the gift was $41,000 Purchased 100 shares of Union Pacic on 9/5/15 for $6,000 The Cohens have a $43,000 long-term capital loss carryover from the prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2015. The Cohens received the refund because they had overpaid their New Jersey state individual income tax in 2015. On their 2015 Federal income tax return, the Cohens deducted and received tax benet for all state tax income taxes paid in 2015. Diana is a 10% owner in an advertising agency named Bright Ideas (\"Bl\") (EIN 20-1234567}. BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Diana received a K-l from BI reporting her allocation of this business income. Diana acquired the stock several years ago. Her basis in the stock before considering her 2016 income allocation was $92,000. Diana is a passive owner with respect to this entity. Diana is also a 20% owner in Natural Sunshine, Inc. ("NS\") (EIN 2&9875543). NS is a Subchapter S corporation. The company reported an ordinary business loss for the year of {$80,000}. Diana received a K-1 from N5 reporting her allocation of this business loss. Diana acquired the stock several years ago. Her basis in the stock before considering her 2016 loss allocation was $45,000. Diana is a passive owner with respect to this entity. Joseph received 5,000 shares of restricted (common) stock from his employer on July 1, 2016. The terms of the restricted stock grant are such that if Joseph is still employed by Alternative Energy on July 1, 2021 the entire 5,000 shares will vest and become his property. Joseph, upon the advice of his tax advisor, prepared and filed an IRC Section 83(b} election on July 8, 2016. On July 1, 2016, the shares were valued at $5 per share. Joseph estimates the value of the shares in five years will be at least $150 per share. Joseph notified Alternative Energy about the IRC Section 83(b} election in a timely manner. None ofthe income tax consequences of this restricted stock grant was included in the $118,325 reported as part ofJoseph's gross wages (see above}. In May, Joseph was injured in a home accident. The injury prevented Joseph from working for about a month. During this time, Joseph received $15,000 in disability payments attributable to a disability insurance policy. The disability policy premiums were paid on Joseph's behalf as a nontaxable fringe benefit. The Cohens paid the following expenses during the year: Dentist {unreimbursed by insurance) $1.500 Doctors {unreimbursed by insurance} 3. 2,425 Prescriptions (unreimbursed by insurance) $ 675 Real property taxes on residence $7,525 Vehicle property tax based upon value $1,250 Mortgage interest on principal residence $12,550 Margin interest paid to broker $600 Contribution to United Way $2,000 Contribution to American Cancer Society $5,000 Contribution to neighborhood drive to oppose development project 5500 Contribution to the Temple Mount Synagogue $12,000 Fee paid to Mouser, Johnson, and Hintze CPAs fortax preparation $450 The Cohens also donated clothing, electronics, furniture and other household goods to the Salvation Army of Pleasantville, New Jersey on April 15, 2016. Estimated thrift value ofthe goods donated was $275. Miscellaneous Information On September 1, the Cohens paid $200 in foreign taxes attributable to the dividend received from the China Fund. During the year, the Cohens paid a portion of Rebecca's tuition to attend The College of Liberal Arts of New Jersey {CLA}. They also purchased Rebecca's school books. Rebecca attended the spring/summer and the fall semesters as a fulltime student. In total, the Cohens paid $9,000 for tuition and $2,000 for books. Rebecca used $6,000 from a scholarship she received from CLA to pay the remaining $6,000 of tuition for the year. Rebecca was not required to perform any services as a condition of accepting the scholarship. Rebecca was not employed during the year. CLA's address and employer identification number (EIN) is as follows: The College of Liberal Arts of New Jersey 65 Ivory Tower Penns Grove, NJ 08069 EIN- 226698324 The Cohens would like to contribute to the Presidential Election Campaign Fund. The Cohens would also like to receive a refund {if any} oftax they may have overpaid for the year. Their preferred method of receiving the refund is by check