• In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the miscellaneous income? In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the Schedule B interest and dividend income? In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the Adjusted Gross Income? In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the total itemized deduction for taxes? In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the total itemized deduction for interest expense? In the Comprehensive Individual Tax Return Problem for Paige Turner (Base case-2015), what is the Taxable Income? Please help me with this. These are the questions I repeatedly got wrong, please help me with this.

COMPREHENSIVE INDIVIDUAL TAX RETURN PROBLEM PAIGE TURNER - BASE CASE - 2015 (Spring 2016 version) Introduction: Every student will have four weeks to work on the same base case and there will be 20 questions to answer to earn 40 points. You will have an unlimited number of attempts and an Excel template will be provided to you. The test is in Black board under \"Quizzes and Exams\" with a course link in the Paige Turner folder. The problem (this document) and the excel template can be found under \"Course Documents\" - \"Paige Turner\" folder. Students need to earn 540 points to receive an \"A\" for this course. It is possible to earn this number of points without taking the final project. In such a case, the final project will be optional as it will not affect the final grade. BONUS POINTS: There is an option for 30 bonus points for those students looking to earn a higher grade. The bonus points option will be patterned after the Paige Turner Base Case with variations which will be unique for every student. For the final project, you will only answer three ten-point questions: (1) What is Adjusted Gross Income (2) What is Taxable Income, and (3) What is the Tax Payable or (Refund). You will have one week to complete the final project and you will have only one attempt because each student submission will be individually graded. A thorough understanding of all of the issues and calculations in the base case will be very helpful in preparing your for the final project. The bonus point option will be available upon request only. Facts: 1 Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paige provides more than half of her support. In the current year, Ali earned $1,500 of interest income and $3,000 as a professional model. Leif lives with his father, Will (Lief lived with Will for all of the current year). Will provides more than half of Leif's support. Paige pays \"alimony\" of $400 per month to Will. The payments are to continue until Leif reaches age 18, when they will be reduced to $250. Paige uses the cash method of accounting and a calendar year for reporting. Paige's birthday is May 31, 1975. Ali's birthday is October 5, 2004. Leif's birthday is December 1, 2002. 2 Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). Paige's pay stubs indicate that she had $7,320 withheld in federal taxes, $4,897 in state taxes. She earned $75,000 of wages subject to employee Social Security taxes and Medicare taxes. ASCI has an extensive fringe benefits program for its employees. 3 Paige earned salary of $70,000 (before subtracting her 401(k) and flexible spending plan contributions). She contributed $6,000 to her 401(k) account, and she contributed $3,600 to her flexible spending account. 4 ASCI paid $397 of whole life insurance premiums to cover Paige's personal whole life insurance policy. ASCI also paid health club dues of $900 to a nearby health club on Paige's behalf. 5 Taking advantage of ASCI's educational assistance program, during the fall Paige enrolled in two graduate engineering classes at a local college. ASCI paid her tuition, fees, and other course-related costs of $2,300. 6 Paige received free parking in the company's security garage that would normally cost $200 per month. 7 Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500. 8 On January 15, of the current year, Paige's father died. From her father's estate, she received stock valued at $30,000 (his basis was $12,000) and her father's house valued at $90,000 (his basis in the house was $55,000). 9 Paige owns several other investments and received the following information reports for the current tax year: Form 1009-Div: General Dynamics - Gross qualified dividends - $300 Form 1099-Int New Jersey Economic Development bonds - Gross interest - $300 IBM bonds - Gross interest - $600 State of Nebraska bonds - Gross Interest - $200 Form 1098-Mortgage Interest Statement Sunbelt Credit Union - Mortgage interest - $7,100 Northeast Bank - Home-equity loan interest - $453 Form K-1 Grubstake Mining and Development: Distribution to shareholder - $1,000 Ordinary income (1% of $200,000) - $2,000 10 In addition to the investments discussed above, Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding. Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Paige does not materially participate in Grubstake's activities. 11 Paige slipped on a wet spot in front of a computer store last July. She broke her ankle and was unable to work for two weeks. She incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave her $1,000 for pain and suffering resulting from the injury. ASCI continued to pay her salary during the two weeks she missed because of the accident. ASCI's plan also paid her $1,200 in disability pay for the time she was unable to work. Under this plan ASCI pays the premiums for the disability insurance as a fringe benefit. The disability plan premiums are not included in Paige's W-2 wages. 12 Paige received a Form 1099-B from her broker for the sale of the following securities during the current year (reported as \"XX\" below). The adjusted basis amounts were reported to the IRS. Sale Purchase Security Date Date Nebraska state03/14/XX 10/22/07 bonds Cassill Corp (50010/20/XX 02/19/12 shares) Sales Price $2,300 Commission on Sale $160 $8,500 $425 PaidHer Basis $1,890 $9,760 13 In addition to the taxes withheld from her salary, she also made timely estimated federal tax payments of $175 per quarter and timely estimated state income tax payments of $150 for the first three quarters. The $150 fourth-quarter state payment was made on December 28 of the current year. Paige would like to receive a refund for any overpayment. 14 In August of the current year, she received a federal refund of $60 and a state tax refund of $180 related to the tax returns she filed for the prior year. Her itemized deductions for the prior year were $18,430. 15 Paige found a renter for her father's house on August 1. The monthly rent is $400, and the lease agreement is for one year. The lease requires the tenant to pay the first and last months' rent and a $400 security deposit. The security deposit is to be returned at the end of the lease if the property is in good condition. On August 1, Paige received $1,200 from the tenant per the terms of the lease agreement. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $100 to compensate for the plumbing repairs. Paige provides you with the following additional information for the rental in the current year. Property taxes Other maintenance expenses Insurance expense Management fee Depreciation (to be computed) $770 285 495 350 ? Local practice is to allocate 12 percent of the fair market value of the property to the land. (See 8 for basis information.) Paige makes all decisions with respect to the property. 16 Paige paid $2,050 in real estate taxes on her principal residence. The real estate tax is used to pay for town schools and other municipal services. 17 Paige drives a 2012 Acura TL. Her car registration fee (based on the car year) is $50 and covers the period 1/1/14 through 12/31/14. In addition, she paid $280 in property tax to the state based on the book value of the car. 18 In addition to the medical costs presented in 11, Paige incurred the following unreimbursed medical costs: Dentist $ 310 Doctor 390 Prescription drugs 215 Over-the-counter drugs 140 Optometrist 125 Emergency room charges 440 LASIK eye surgery 2,000 Chiropractor 265 19 On March 1, Paige took advantage of low interest rates and refinanced her $75,000 home mortgage with her original lender. The new home loan is for 15 years. She paid $215 in closing costs and $1,500 in discount points (prepaid interest) to obtain the loan. The house is worth $155,000, and Paige's basis in the house is $90,000. As part of the refinancing arrangement, she also obtained a $10,000 home-equity loan. She used the proceeds from the home-equity loan to reduce the balance due on her credit cards. Paige received several Form 1098 statements from her bank for interest paid by her in the current year. Details appear below. (See also 9) Primary home mortgage Home-equity loan Credit cards Car loan $7,100 453 498 390 20 On May 14 of the current year, Paige contributed clothing to the Salvation Army. The original cost of the clothing was $740. She has substantiation valuing the donation at $360. In addition, she made the following cash contributions and received a statement from each of the following organizations acknowledging her contribution: Larkin College $850 United Way 152 First Methodist Church 790 Amos House (homeless shelter) 200 Local Chamber of Commerce 100 21 On April 1of the current year, Paige's house was robbed. She apparently interrupted the burglar because all that's missing is an antique brooch she inherited from her grandmother (June 12, 2005) and $300 in cash. Unfortunately, she didn't have a separate rider on her insurance policy covering the jewelry. Therefore, the insurance company reimbursed her only $500 for the brooch. Her basis in the brooch was $6,000, and its fair market value was $7,500. Her insurance policy also limits to $100 the amount of cash that can be claimed in a theft. 22 Paige sells real estate in the evening and on weekends (considered an active trade or business). She runs her business from a rental office she shares with several other realtors. Paige has been operating in a business-like way since 2003 and has always shown a profit. She had the following income and expenses from her business: Commissions earned Expenses: Advertising Telephone Real estate license Rent Utilities $21,250 2,200 95 130 6,000 600 23 She has used her Acura TL in her business since July 1of the current year. During the year, she properly documented 6,000 business miles (1,000 miles each month). The total mileage on her car (i.e., business- and personal-use miles) during the year was 15,000 miles. Paige elects to use the standard mileage method to calculate her car expenses. She spent $45 on tolls and $135 on parking related to the real estate business. 24 Paige's company has an accountable expense reimbursement plan for employees from which Paige receives $12,000 for the following expenses: Airfare Hotel Meals Car rentals Entertainment Incidentals Total $4,700 3,400 2,000 600 900 400 12,000 25 During the current year, Paige also paid $295 for business publications other than those paid for by her employer and $325 for a local CPA to prepare her tax return for the prior year