Individual Income Tax

ACC 209 Income Tax Project

Problem- Page # 3-47

Comprehensive Problem #2A (Russell Long)

Requirements: Based on the facts provided in the aforementioned, complete the following:

1. Federal income tax return on Form 1040, Schedule 1 and Schedule 5
2. Schedule A (note see information below pertaining to Schedule A)
3. Schedule B
4. Schedule C
5. Form 8829

NOTE THE FOLLOWING (in addition to the facts from the problem, the following also pertains to taxable events that Russell incurred).

1. Russell owns his house and has a mortgage of $500,000. His annual mortgage interest on the house is $20,000. (Note; according to the facts, Russell is renting his house for $12,000. PLEASE DISREGARD THIS STATEMENT). THE FACT REMAINS THAT HE USES HIS ONE ROOM AS HIS HOME OFFICE USING THE SAME FACTS AS IN THE BOOK.

2. His annual Property Tax is $10,000 annually.

3. During the year his wife incurred medical bills as follows;
4. 1. Medical bills for a surgery and paid out of pocket cost of $ 18,000
   2. Prescribed drugs $500
   3. Doctor bills $2000
   4. Rehabilitation after surgery $5000

4. The Longs made a charitable donation of $500 cash to the US Red Cross (registered not- for profit organization)