I'm needing help preparing a 2109 tax return on this?

Samson, a world renowned strong man and athlete, is employed as an owner and a trainer for his business "FeelFit Health Club". To some people, he is just another long-haired strong man living a life of earlier eras. Delilah, his vivacious wife, is also not your stereo-typical "blonde". She also happens to be employed as a barber and hairstyling consultant at "Abraham's Hairstyling Salon". Samson and Delilah Athena live with their family at 4323 Elaine Way, Kearney, Nebraska 68845. Samson's social security number is 413-17-4677, while Delilah's is 429-11-1947. Their land line telephone number is 402-497-9625. Both are in their mid-forties and enjoy good health. Both have excellent eyesight, although Samson has occasionally complained of blackouts when Delilah cuts his hair. Samson, born July 1, 45 years ago, and Delilah, born April 15, 43 years ago, have been married 25 years and have always lived in Nebraska. In the past, they always filed their tax returns as married filing jointly. They plan to continue to file the same this year. However, this year they both would like to have part of their taxes go to the Presidential Election campaign fund. Also, to aid in the preparation of the return, the couple has provided a copy of last year's tax return. Samson and Delilah have three children: Cain, born January 1, age nineteen, social security number 501-18-2222; Abel, born February 10, age seventeen, social security number 503-11-3116; and Seth, born July 4, age eight, social security number 508-62-8056. The couple also welcomed into their home a baby boy on June 8. Joseph's social security number is 502-34-1927. Cain graduated from Kearney High School in May this year and started his freshman year at the University of Houston, 210 Education Boulevard, Houston, Texas 77005 in August. He earned $3,500 on a summer job, which he deposited in a savings account and did not use it for his support. Samson sent Cain $400 per month (August through December) so that Cain would not have to use his personal savings for living expenses. Samson and Delilah also helped pay for his tuition, fees, books, board and room, and purchased some of his clothes. Cain's tuition and fees totaled $22,350, books were $2,700 and board and room was $23,000 for the fall semester and received a Form 1098-T from the University. Cain received a $6,000 scholarship. The school's Federal ID is 37-7941003. Abel is proving to be a very serious student with high academic standards already set in High School. Little Seth just started 2 grade this fall and has already decided that he is going to follow in his father's footsteps as a strong man and take over his dad's business when he retires. Since Samson solely owns and works full-time at the FeelFit Health Club at 2731 Ark Avenue, Kearney. He submitted the business records for the club for you to use this year. He began this business on February 10, four years ago. The EIN number for the business is 47-0669032 and the business code for his health club is 812990. Since he provides only a service, he uses the cash basis method of keeping his books. He believes he has given you everything you need to complete the business portion on the return. He felt there was nothing required a filing of Form 1099-Misc. $185,000 142,000 15,200 ? ? 3,400 2,500 11,700 12,500 600 4,300 Business information submitted by Samson: Revenue: General Membership Fees Private Trainer Fees Expenses: Advertising Car, Truck, miles, expense Depreciation Insurance (Health Insurance is made available to all full-time employees but no premiums are paid by the company) On the building On the equipment Liability Interest related to building mortgage Last year's business portion of accounting and tax work Office expenses Repairs and Maintenance: Painted wall Exercise Equipment repairs Bathroom plumbing repairs Broken lights Supplies Taxes: Real property Personal property (equip.) Payroll taxes Travel Utilities: Telephone Electricity Garbage Water and Sanitation Natural gas Wages: One full-time office assistant 945 385 1,085 750 1,200 5,500 2,810 8,921 ? 2,800 3,260 720 800 3,250 49,000 6 part-time workers 65,000 Samson also included a list of the equipment and furniture in the business that needs to be depreciated. He has always had the accountant use the MACRS method for figuring the depreciation and wishes the same thing for this year. He has also never taken advantage of the bonus year depreciation nor the Section 179 expensing of any of his previous purchases and does not wish to this year either. All purchases made by Samson were new purchases with no trade-ins. Price Paid $383,000 800 1,200 1,500 750 510 Assets in Business Purchase Date Building February 10, four years ago (Cost of land included in the price is $42,000) Office Equipment: Desk February 10, four years ago Chairs June 1, two years ago Computer & Printer August 25, two years ago File Cabinets July 1, two years ago Storage credenza February 10, four years ago Workout and Training Equipment: Elliptical machines February 10, four years ago June 15, three years ago Treadmills February 10, four years ago Stationary bikes February 10, four years ago April 26, this year Weight machines September 1, three years ago Items for the weight and training room: Rubber floor mats August 1, three years ago Storage weight racks February 10, four years ago May 23, a year ago 2,800 2,750 5,200 2,200 820 4,900 1,778 350 500 There are no vehicles dedicated to the business because Samson does not do that much transportation or travel-related business. However, he did some traveling this year to promote the health club and entertain customers. He drove is personal car and kept records of his business-related miles only. The business mileage totaled 5,600 miles this year. He did not keep records of the gas used or repairs made because his total miles driven with the vehicle this year was 24,800 miles (which includes the 5,600 business miles). These miles were all personal or commuting miles except the miles for business identified earlier. Five of the business trips required him to stay two to three days at a specific location. He incurred $1,600 in lodging and $950 in meals. He did not incur any parking fees nor toll fees on his travels. Samson drives a 2017 Ford Edge that was purchased new on January 2, 2017. No other vehicle was traded in at the time of the purchase. However, being so busy with keeping his muscles well- tuned, he did not have time to keep track of the motor vehicles costs. Delilah began work in February two years ago for a barber in Kearney-Abraham's Haircutting, 1692 Spa Street, Kearney, EIN No. 47-1975331. Her Form W-2 for the year included the following: Wages, tips, and other compensations $46,425 Total Social Security and Medicare wages 48,000 Social Security tax withheld 2.976 Medicare tax withheld 696 Federal Income tax withheld 5,215 State income tax withheld 820 In addition to their earnings, Samson received the following amounts on Form 1099s for dividends and other income: Dividends on Apple stock (ordinary and qualified) $280 Dividends on Chevrolet stock (ordinary and qualified) 550 Interest on savings in Employee Federal Credit Union 80 Samson had modeling fees for Camel Power drink advertising 1,220 Samson sold three sets of stock this year and received a Form 1099-B from Ameritrade for each of these sales. The 1099-B indicated that the basis was not reported to the IRS. 100 shares of BK's Burgers stock-sold on April 1 this year for $122 a share. They were purchased for $100 a share on December 20 two years ago. 135 shares of Lights Bright stock-sold on November 23 this year for $100 a share. They were purchased for $104 a share on March 10 five years ago. 62 shares of Slim Look stock-sold on March 14 this year for $95 a share. They were purchased for $39 a share on May 20 last year. Samson and Delilah received Form 1099s for interest earned from: First National Bank savings account 160 First Federal Security investments 1,280 (They cashed a CD early at First Federal Security, receiving a penalty of $98.00.) U.S. Government bonds 180 Samson and Delilah did not the sell the home they purchased on January 1, 25 years ago, when they were first married. They converted it to a rental home 10 years ago. When they completed the conversion, the home had a fair market value of $107,000 while they originally paid $57,000 on the home 25 years ago. The land had a $16,000 value 25 years ago and has a fair market value at the time of conversion of $38,000 today. The house is located at 825 E. Lovely Lane, Kearney, NE 68845. During the current year, Samson and Delilah received $1,075 a month for each of the twelve months this year in rental income from the tenants and paid the following expenses: Management Fees $ 440 Insurance 140 Mortgage interest Real estate taxes 1,310 Repairs Utilities 1,600 Depreciation on home ? 825 380 Joseph, being so young, required daycare while Delilah worked. Delilah as fortunate enough to have found Babylonian Care Center, 2917 Avenue C, Kearney, NE 68845, employee ID number 47-0976215. Joseph has enjoyed being there since August 1. The total daycare costs were $2,640 for the year. Samson and Delilah believe they might be able to itemize their deductions and gave you a list of the items they paid by check, among other things, this year: Medicine and drugs from prescriptions $267 Vitamins and mineral supplements 65 Doctor expenses 320 Dentist expenses 320 Glasses for Samson (after all, he is past 40) 110 Bottled water 75 Hospital costs for Abel's appendectomy 380 (The above amounts are what the insurance company did not pay in each situation.) Personal automobiles' insurance 1,533 Real estate taxes on home 3,200 Personal Property taxes 2016 Ford Edge 512 1969 Ford Mustang 35 Driver's license for Samson 30 Sales tax on Ford Mustang 2,100 Home mortgage interest 9,323 Interest on the new vehicle loan 1,460 Finance charge, Consumer Charge card 35 Finance charge, Overprices Clothes, Inc. 15 Contribution toward funeral expenses for Uncle Sam 1,100 Contribution to V.E. Glib's campaign for Governor 150 Contribution to Congregation Disciple church 5,200 Contribution to American Red Cross 850 Contribution to Payne Hospital Services of I. M. Sharp, CPA, for computation of last year's federal income tax (this is for the personal tax return not related to the business) 320 Gymnastics clothing and sweat suits for Samson 450 Uniforms and shoes for Delilah, only used for work 302 98 Samson and Delilah also realized and noted mileage within their personal miles, in addition to the business miles, that were for: Medical purposes, 120 miles; and for Charity purposes with Payne Hospital for delivery of Meals on Wheels, 250 miles. Samson and Delilah took a trip to the casinos to celebrate their anniversary. Delilah won $3,600 playing the slots. Samson, being a great business man, kept all his receipts and costs of gambling. They spent $4,900 over the year on lottery tickets and playing the slots. In addition to the federal withholdings in Delilah Form W-2, they quarterly estimated payments on April 15, June 15, September 15, and January 15 of 54,200 each quarter for the federal income tax and $1,450 each quarter for state income taxes. The fourth quarter estimated payment for last year's taxes paid on January 15 this year: federal income tax payment of $2,100 and state income tax payment of $1,600. Prepare Samson and Delilah's federal income tax return for this year. Be sure to include all the necessary forms in the proper sequence and schedules related to their return. If there is a refund, Samson would like to have it applied to next year's return. Samson, a world renowned strong man and athlete, is employed as an owner and a trainer for his business "FeelFit Health Club". To some people, he is just another long-haired strong man living a life of earlier eras. Delilah, his vivacious wife, is also not your stereo-typical "blonde". She also happens to be employed as a barber and hairstyling consultant at "Abraham's Hairstyling Salon". Samson and Delilah Athena live with their family at 4323 Elaine Way, Kearney, Nebraska 68845. Samson's social security number is 413-17-4677, while Delilah's is 429-11-1947. Their land line telephone number is 402-497-9625. Both are in their mid-forties and enjoy good health. Both have excellent eyesight, although Samson has occasionally complained of blackouts when Delilah cuts his hair. Samson, born July 1, 45 years ago, and Delilah, born April 15, 43 years ago, have been married 25 years and have always lived in Nebraska. In the past, they always filed their tax returns as married filing jointly. They plan to continue to file the same this year. However, this year they both would like to have part of their taxes go to the Presidential Election campaign fund. Also, to aid in the preparation of the return, the couple has provided a copy of last year's tax return. Samson and Delilah have three children: Cain, born January 1, age nineteen, social security number 501-18-2222; Abel, born February 10, age seventeen, social security number 503-11-3116; and Seth, born July 4, age eight, social security number 508-62-8056. The couple also welcomed into their home a baby boy on June 8. Joseph's social security number is 502-34-1927. Cain graduated from Kearney High School in May this year and started his freshman year at the University of Houston, 210 Education Boulevard, Houston, Texas 77005 in August. He earned $3,500 on a summer job, which he deposited in a savings account and did not use it for his support. Samson sent Cain $400 per month (August through December) so that Cain would not have to use his personal savings for living expenses. Samson and Delilah also helped pay for his tuition, fees, books, board and room, and purchased some of his clothes. Cain's tuition and fees totaled $22,350, books were $2,700 and board and room was $23,000 for the fall semester and received a Form 1098-T from the University. Cain received a $6,000 scholarship. The school's Federal ID is 37-7941003. Abel is proving to be a very serious student with high academic standards already set in High School. Little Seth just started 2 grade this fall and has already decided that he is going to follow in his father's footsteps as a strong man and take over his dad's business when he retires. Since Samson solely owns and works full-time at the FeelFit Health Club at 2731 Ark Avenue, Kearney. He submitted the business records for the club for you to use this year. He began this business on February 10, four years ago. The EIN number for the business is 47-0669032 and the business code for his health club is 812990. Since he provides only a service, he uses the cash basis method of keeping his books. He believes he has given you everything you need to complete the business portion on the return. He felt there was nothing required a filing of Form 1099-Misc. $185,000 142,000 15,200 ? ? 3,400 2,500 11,700 12,500 600 4,300 Business information submitted by Samson: Revenue: General Membership Fees Private Trainer Fees Expenses: Advertising Car, Truck, miles, expense Depreciation Insurance (Health Insurance is made available to all full-time employees but no premiums are paid by the company) On the building On the equipment Liability Interest related to building mortgage Last year's business portion of accounting and tax work Office expenses Repairs and Maintenance: Painted wall Exercise Equipment repairs Bathroom plumbing repairs Broken lights Supplies Taxes: Real property Personal property (equip.) Payroll taxes Travel Utilities: Telephone Electricity Garbage Water and Sanitation Natural gas Wages: One full-time office assistant 945 385 1,085 750 1,200 5,500 2,810 8,921 ? 2,800 3,260 720 800 3,250 49,000 6 part-time workers 65,000 Samson also included a list of the equipment and furniture in the business that needs to be depreciated. He has always had the accountant use the MACRS method for figuring the depreciation and wishes the same thing for this year. He has also never taken advantage of the bonus year depreciation nor the Section 179 expensing of any of his previous purchases and does not wish to this year either. All purchases made by Samson were new purchases with no trade-ins. Price Paid $383,000 800 1,200 1,500 750 510 Assets in Business Purchase Date Building February 10, four years ago (Cost of land included in the price is $42,000) Office Equipment: Desk February 10, four years ago Chairs June 1, two years ago Computer & Printer August 25, two years ago File Cabinets July 1, two years ago Storage credenza February 10, four years ago Workout and Training Equipment: Elliptical machines February 10, four years ago June 15, three years ago Treadmills February 10, four years ago Stationary bikes February 10, four years ago April 26, this year Weight machines September 1, three years ago Items for the weight and training room: Rubber floor mats August 1, three years ago Storage weight racks February 10, four years ago May 23, a year ago 2,800 2,750 5,200 2,200 820 4,900 1,778 350 500 There are no vehicles dedicated to the business because Samson does not do that much transportation or travel-related business. However, he did some traveling this year to promote the health club and entertain customers. He drove is personal car and kept records of his business-related miles only. The business mileage totaled 5,600 miles this year. He did not keep records of the gas used or repairs made because his total miles driven with the vehicle this year was 24,800 miles (which includes the 5,600 business miles). These miles were all personal or commuting miles except the miles for business identified earlier. Five of the business trips required him to stay two to three days at a specific location. He incurred $1,600 in lodging and $950 in meals. He did not incur any parking fees nor toll fees on his travels. Samson drives a 2017 Ford Edge that was purchased new on January 2, 2017. No other vehicle was traded in at the time of the purchase. However, being so busy with keeping his muscles well- tuned, he did not have time to keep track of the motor vehicles costs. Delilah began work in February two years ago for a barber in Kearney-Abraham's Haircutting, 1692 Spa Street, Kearney, EIN No. 47-1975331. Her Form W-2 for the year included the following: Wages, tips, and other compensations $46,425 Total Social Security and Medicare wages 48,000 Social Security tax withheld 2.976 Medicare tax withheld 696 Federal Income tax withheld 5,215 State income tax withheld 820 In addition to their earnings, Samson received the following amounts on Form 1099s for dividends and other income: Dividends on Apple stock (ordinary and qualified) $280 Dividends on Chevrolet stock (ordinary and qualified) 550 Interest on savings in Employee Federal Credit Union 80 Samson had modeling fees for Camel Power drink advertising 1,220 Samson sold three sets of stock this year and received a Form 1099-B from Ameritrade for each of these sales. The 1099-B indicated that the basis was not reported to the IRS. 100 shares of BK's Burgers stock-sold on April 1 this year for $122 a share. They were purchased for $100 a share on December 20 two years ago. 135 shares of Lights Bright stock-sold on November 23 this year for $100 a share. They were purchased for $104 a share on March 10 five years ago. 62 shares of Slim Look stock-sold on March 14 this year for $95 a share. They were purchased for $39 a share on May 20 last year. Samson and Delilah received Form 1099s for interest earned from: First National Bank savings account 160 First Federal Security investments 1,280 (They cashed a CD early at First Federal Security, receiving a penalty of $98.00.) U.S. Government bonds 180 Samson and Delilah did not the sell the home they purchased on January 1, 25 years ago, when they were first married. They converted it to a rental home 10 years ago. When they completed the conversion, the home had a fair market value of $107,000 while they originally paid $57,000 on the home 25 years ago. The land had a $16,000 value 25 years ago and has a fair market value at the time of conversion of $38,000 today. The house is located at 825 E. Lovely Lane, Kearney, NE 68845. During the current year, Samson and Delilah received $1,075 a month for each of the twelve months this year in rental income from the tenants and paid the following expenses: Management Fees $ 440 Insurance 140 Mortgage interest Real estate taxes 1,310 Repairs Utilities 1,600 Depreciation on home ? 825 380 Joseph, being so young, required daycare while Delilah worked. Delilah as fortunate enough to have found Babylonian Care Center, 2917 Avenue C, Kearney, NE 68845, employee ID number 47-0976215. Joseph has enjoyed being there since August 1. The total daycare costs were $2,640 for the year. Samson and Delilah believe they might be able to itemize their deductions and gave you a list of the items they paid by check, among other things, this year: Medicine and drugs from prescriptions $267 Vitamins and mineral supplements 65 Doctor expenses 320 Dentist expenses 320 Glasses for Samson (after all, he is past 40) 110 Bottled water 75 Hospital costs for Abel's appendectomy 380 (The above amounts are what the insurance company did not pay in each situation.) Personal automobiles' insurance 1,533 Real estate taxes on home 3,200 Personal Property taxes 2016 Ford Edge 512 1969 Ford Mustang 35 Driver's license for Samson 30 Sales tax on Ford Mustang 2,100 Home mortgage interest 9,323 Interest on the new vehicle loan 1,460 Finance charge, Consumer Charge card 35 Finance charge, Overprices Clothes, Inc. 15 Contribution toward funeral expenses for Uncle Sam 1,100 Contribution to V.E. Glib's campaign for Governor 150 Contribution to Congregation Disciple church 5,200 Contribution to American Red Cross 850 Contribution to Payne Hospital Services of I. M. Sharp, CPA, for computation of last year's federal income tax (this is for the personal tax return not related to the business) 320 Gymnastics clothing and sweat suits for Samson 450 Uniforms and shoes for Delilah, only used for work 302 98 Samson and Delilah also realized and noted mileage within their personal miles, in addition to the business miles, that were for: Medical purposes, 120 miles; and for Charity purposes with Payne Hospital for delivery of Meals on Wheels, 250 miles. Samson and Delilah took a trip to the casinos to celebrate their anniversary. Delilah won $3,600 playing the slots. Samson, being a great business man, kept all his receipts and costs of gambling. They spent $4,900 over the year on lottery tickets and playing the slots. In addition to the federal withholdings in Delilah Form W-2, they quarterly estimated payments on April 15, June 15, September 15, and January 15 of 54,200 each quarter for the federal income tax and $1,450 each quarter for state income taxes. The fourth quarter estimated payment for last year's taxes paid on January 15 this year: federal income tax payment of $2,100 and state income tax payment of $1,600. Prepare Samson and Delilah's federal income tax return for this year. Be sure to include all the necessary forms in the proper sequence and schedules related to their return. If there is a refund, Samson would like to have it applied to next year's return