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I need to prepare a tax return to include a 1040 and required schedules. Tax Return #4 Victor Hernandez (SSN 277-31-7264) is divorced and age
I need to prepare a tax return to include a 1040 and required schedules.
Tax Return #4 Victor Hernandez (SSN 277-31-7264) is divorced and age 41.His eight-year-old son, Mitch, lives with him all year at 321 Hickory Drive in Tempe, AZ 85282. Mitch's SSN is 527-42-9236. Victor has a salary of $89,000. Taxes withheld during the year are $3,221 federal withholding and 850 state withholding. Interest on checking account: $25 Interest on Arizona state bonds: $1000 US Treasury bond interest: $1500 Cash dividends that were reinvested: $2000 Stock dividends: 100 shares. The stock has a fair market value of $50 per share Victor received a K-1 from a partnership indicating that his share of the partnership interest income is $500 and STCL is $200. Victor has a side business in which he makes and sells wooden toys in his garage workshop. He made $12,000 from sales in 2015. He incurred the following expenses. Cost of materials and supplies Internet web page Merchant fees Phone and internet Office supplies $5000 900 125 500 200 On July 14 of the current year, he sold the following assets: Land was sold for $35,000 on February 1, 2015. The land was received as the divorce property settlement on January10, 2001, when the land's FMV amounted to $30,000. His ex-wife's basis for the land, purchased on January 10, 1991, was $18,600 A personal-use computer acquired on March 2 last year for $4,000 was sold for $2,480 on June 3, 2015 A membership card for a prestigious country club was sold for $8,500 on April 1, 2015. The card was acquired on October 10, 1993, for $6,000. Marketable securities held as an investment were sold for $20,000 December 31, 2015. The securities were inherited from his uncle, who died on March 10, 2015 when FMV of the securities was $21,000. The uncle purchased the securities on May 10, 1990, for $10,700. . In addition to the above sales, Victor received a $100 refund of state income taxes paid last year. Victor used the standard deduction last year to compute his tax liability. Victor and his son were covered by an employer sponsored health insurance all year. 1 Tax Return #4 He incurred the following expenses during the year. Doctor visits Prescriptions Sales tax on an RV Property tax on home Loan interest on the RV Mortgage interest on home Mortgage insurance premium Cash donations to church Donations of clothing to Goodwill condition; donate 6/30/2015 Unreimbursed travel expenses Other than meals Unreimbursed meals and entertainment Preparation of a will Attorney fees for child custody issue Tax preparation $500 $100 $3120 $1800 $500 $7500 $1250 $3000 $1000 fair market value; cost $4000; good $6000 $1200 $1500 $2500 $425 Prepare the 2015 tax return and all necessary supporting schedules. 2Step by Step Solution
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