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How would I use this information on the 1040 form? Like how do I calculate their ordinary dividends Client: Spouse: John Harrison (date of birth

How would I use this information on the 1040 form? Like how do I calculate their ordinary dividends

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Client: Spouse: John Harrison (date of birth 08/10/1966 & social security #456-78-0123) Jane Harrison (date of birth 06/01/1968 & social security #321-45-7891) Address: 610 Market Street, Wilmington, NC 28403 Children: Amy (date of birth 01/15/1998 & social security #055-44-3235) Chris (date of birth 07/22/2002 & social security #041-11-3268) Mike (date of birth 08/02/2006 & social security #068-11-1789) Health Insurance: All family members were covered all year under Jane's employer provided plan. Additional: . John is self-employed. He has owned and run a cash-basis doggy daycare for the past 3 years. During the year, the daycare purchased no depreciable assets, and made no payments requiring 1099s. . John has a SEP-IRA and made a $5,000 contribution. Jane is a Human Resources executive. She is covered by her employer's retirement plan. . Amy is a full-time college sophomore. She lives on campus but comes home over school breaks. . John's uncle died and left John $50,000 in life insurance proceeds. John and Jane have been unable to sell their old home in Raleigh (9 Madison Way, Raleigh, NC 27612). They began renting it out January 1. John actively manages the property, and made no payments which required forms 1099. The income and expenses related to this activity were: Rental Income $20,400 Repairs & Maintenance Expense $ 331 Real Estate Tax Expense $ 3,840 Mortgage Interest Expense $12,270 *Depreciation Expense $ 8,779 "The fair market value of the house on January 1 was $251,900, original cost $280,000

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