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i need help with this one to see if my 1040 is correctly done 1:6-61 Lyle and Kaye James are married, have two minor children,
i need help with this one to see if my 1040 is correctly done
1:6-61 Lyle and Kaye James are married, have two minor children, Jessica, age 8 and Jerron, age 4, and are filing a joint tax return in the current year. They are both employed. Lyle and Kaye, ages 38 and 37, respectively, have combined salaries of $240,000, from which $48,000 of fed- eral income tax and $10,000 of state income tax are withheld. Lyle and Kaye own two homes. Their primary residence is located at 11620 N. Mount Ave., New Haven, Connecticut 22222, and their vacation home is on the beach in Fort Lauderdale, Florida. They often rent their vaca- tion home to supplement their income. The following items are related to the two homes: Item New Haven Fort Lauderdale Rental income $ $15,000 Mortgage interest expense 7,200 5,000 Property taxes 1,400 1,000 Utilities 1,000 1,300 Repairs 200 300 Depreciation 0 3,500 Advertising 0 200 Insurance 1,500 1,500 The James family used their Fort Lauderdale home 20 days during the year. They rented the vacation home 60 days during the year. Lyle and Kaye jointly own an investment portfolio (which does not include any virtual currency) and have the following transactions in the current year. None of the stocks qualifies as small business stock. Date Transaction Price Paid/Sold 2/15 Bought 50 shares of Lake common stock $1,000 (they own no other Lake stock) 5/14 Bought 100 shares of Bass common stock 3,000 (they own no other Bass stock) 5/24 Sold 25 shares of Lake common stock 250 5/27 Bought 50 shares of Lake common stock 900 Sold 50 shares of Bass common stock 1,750 7/12 Bought 100 shares of Bass common stock 2,800 The James' have no other income or expense items. Lyle and Kaye's Social Security numbers are 111-22-3333 and 444-55-6666, respectively. Jessica and Jerron's Social Security numbers are 123-45-6789 and 888-99-1010. They use the IRS method of allocat- ing all expenses between personal and rental use. Prepare the James' income tax return Form 1040, Schedules 1, A, C, D, and SE for 2020 using the currently available forms and rates. Disregard the alternative minimum tax and any tax credits for which they may be eligible. 1:6-61 Lyle and Kaye James are married, have two minor children, Jessica, age 8 and Jerron, age 4, and are filing a joint tax return in the current year. They are both employed. Lyle and Kaye, ages 38 and 37, respectively, have combined salaries of $240,000, from which $48,000 of fed- eral income tax and $10,000 of state income tax are withheld. Lyle and Kaye own two homes. Their primary residence is located at 11620 N. Mount Ave., New Haven, Connecticut 22222, and their vacation home is on the beach in Fort Lauderdale, Florida. They often rent their vaca- tion home to supplement their income. The following items are related to the two homes: Item New Haven Fort Lauderdale Rental income $ $15,000 Mortgage interest expense 7,200 5,000 Property taxes 1,400 1,000 Utilities 1,000 1,300 Repairs 200 300 Depreciation 0 3,500 Advertising 0 200 Insurance 1,500 1,500 The James family used their Fort Lauderdale home 20 days during the year. They rented the vacation home 60 days during the year. Lyle and Kaye jointly own an investment portfolio (which does not include any virtual currency) and have the following transactions in the current year. None of the stocks qualifies as small business stock. Date Transaction Price Paid/Sold 2/15 Bought 50 shares of Lake common stock $1,000 (they own no other Lake stock) 5/14 Bought 100 shares of Bass common stock 3,000 (they own no other Bass stock) 5/24 Sold 25 shares of Lake common stock 250 5/27 Bought 50 shares of Lake common stock 900 Sold 50 shares of Bass common stock 1,750 7/12 Bought 100 shares of Bass common stock 2,800 The James' have no other income or expense items. Lyle and Kaye's Social Security numbers are 111-22-3333 and 444-55-6666, respectively. Jessica and Jerron's Social Security numbers are 123-45-6789 and 888-99-1010. They use the IRS method of allocat- ing all expenses between personal and rental use. Prepare the James' income tax return Form 1040, Schedules 1, A, C, D, and SE for 2020 using the currently available forms and rates. Disregard the alternative minimum tax and any tax credits for which they may be eligible Step by Step Solution
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