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INDIVIDUAL PRACTICE SET #2 GEORGE AND NILA AMBERSON INDIVIDUAL FEDERAL INCOME TAX RETURN 2019 ANNUAL EDITION ALL DATES RELATE TO YEAR 2019 UNLESS STATED OTHERWISE

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INDIVIDUAL PRACTICE SET #2 GEORGE AND NILA AMBERSON INDIVIDUAL FEDERAL INCOME TAX RETURN 2019 ANNUAL EDITION ALL DATES RELATE TO YEAR 2019 UNLESS STATED OTHERWISE 1.0 INTRODUCTION: You have been employed to complete the 2019 Federal income tax return for George and Nila Amberson. The Ambersons have provided you with original copies of all third-party documents filed with the IRS, such as W- 2's, 1099's, and K-1's. They have also provided you with adequate written documentation to substantiate all transactions mentioned in this case. Lastly, they have provided you with copies of their respective 2018 Federal income tax returns. 1.1 Taxpayer Biographical Information: Biographical data relating to the Ambersons are as follows: George Cohan Amberson, SSN 448-56-2301. Born February 26, 1969. Operated unincorporated landscape engineering business in Temple, Texas during the entire year. Nila Rademaker Amberson, SSN 460-30-2020. Born November 11, 1969. Employed as a professor of English literature at Howard Payne University in Brownwood, Texas during the entire year. George and Nila Amberson were married in Temple on February 14. They reside at 315 West Avenue, Temple, Texas 76501. Their daytime telephone number is (254)555 3976. avable until y Employee's social security number 460-30-2020 b Employe lentification number (EN 72-5415634 e Employer's name, address, and ZIP code 52000.00 Soft, court, OMB No. 1545-0008 F4311 me Wages, lps, other compensation t soon security wape 52000.00 5 Medicae wages and tips 52000.00 7 Social securly tips Visit the IRS Wwbo i le www.h.govuta 2 Federal income tax with 10400.00 Social Security tax witheid 3224.00 6 Medicare tax withold 754.00 # Allocated Tips HOWARD PAYNE UNIVERSITY 1000 FISK AVE BROWNWOOD, TX 76801 d Control number 10 Dependent care benefits Last name But It Nonqualified plans Se instructions for box IP Employee's first name and initial NILA R AMBERSON 315 WESI AVE TEMPLE, TX 76501 Employee's address and ZIP code 16 St Employer's state ID number 16 Stewage, p . 57 state income tax 18 Local wages, Local income tax 20 L Department of the Treasury-hal Revenue Seri Wago and Tax - Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service 2019 L . Some a available CORRECTED (it checked) 3000- 2019 HALSEY CORPORATION WASHINGTON 3rd.STS SPRINGFIELD 112701 Dividends and Distribution 3000 - Porn 1000-DIV Totalcaps U p Set 130 Copy For Recipient cafe raceste moment 53451789 448-56-2303 CERCE AND NILA AMBERSON WEST AVE CONNE TEMPLE, TX 76501 FATCA on 10 Examptntarost dvidenan 11 sonte provato cover For 1090-DIV keep for your records) 1099 -Div Updale App Some account available until CORRECTED checked) PAYER' name strade city of town, thet or povinca, country, Zip regn pou n d phone no Total dinary dividends OMB NO. 1545-0110 4000 DRAPER CORPORATION 902 WASHINGTON AVE HOUSTON, TX 77002 2019 11 O dividends Dividends and Distributions 400 Do Forn 1058-01M 2 Totul capital distr 2 Uvecas Bec, 1250 Cain PAYER'S oder erfitab Copy For Recipient RECIPENT'Senticion De De Section 1200 Collectibles A gain 76--1151234 448-56-2301 PEPERTSTE Nedividend destrution Federal income with This is a Information being furnished to I r ecent For Free US Service, you are required to mengen GEORGE AMBERSON Stratos encang aplin 315 WEST AVE Oy brown, use provho ry, and ZIP or even used TEMPLE, TX 76501 FATCAI requirement Cash in New unction may be Impored on you the income is able and the IRS determine that it has to be p resende Speed pri Rete borbenetton aap for your recorda) www.ingowform 1 Dep o f the Truthmal Revenue Terms 100 1099 ON available until 200- 2019 Dividends and Distributions INTEWORD GROWTH FUNT 300 WESI PERSHING KANSAS CITY, MO 64105 150- 1000-DIV 12000 U 700- Copy For Recipen 460-30-2020 76-6678001 TCPENT'S nane HILA ADON 315 WEST AV THE TX 76501 1090-DIV 1099-01V PAYER' S I CORRECTED (f chocked) weety or on the orphos, country, Payor's hair poucos are telephone OMEHS 1545-0112 2019 H FIRST RATIONAL BANK OF TEMPLE 1700 EASI AVE TEMPLE, IX 76502 Interest Income inc COOR- Porn 1000-INT 2 Ey with Copy PAYS RECIPES de courber S S 448-56-2301 on US, and the For Recipient 74-6767005 RECENT TO Federa lex with hantaxpans For US. de los GEORGE & NILE AMBERSON E xpl te p l.10) STA 315 WEST AVE Co p con 2 oorwin postal de TALE, 2X 76501 Verde FAYCANOS This is important la Information and is boing furnished to the Internal Revenue Service. If you are required le return penalty or nation may be pored on you the income determhes that not been reported padu bond CUP coop for your record F 1000-INT 1099-INT Update Apple Some account available until CORRECTED O checkods. 1900 BASIVE IBILE. TX 76502 2019 Interest Income 10000 1089-INT Copy For Boolplant 7--234588 460-30-2020 SISESTAVE FATCA 1000 1099-INT CORREO 2019 Interest Income DAN 10 ter 1029-INT Copy For Recipient 76-116888 60-30-2020 ON 35 VESTAVE 1099-INT PU14 U10 Q Update Some acc avalable Description Of Asset: Date of Acquisition: Date of Sale: Proceeds from Sale: Method of Acquisition: Method of Sale: Silver tea Service 9/25/06 7/12/19 $900 Received by George as a gift. Basis to donor was $300 FMV at time of Gift was $700. Sold to unrelated neighbor * The donor paid no gift tax on the gift. All assets listed above were held by the Ambersons for investment purposes. Other Investments: A. George is a general partner of Harrison Tubulars, LP. He owns a 15 percent interest in the partnership. He devoted 200 hours to the operation of the partnership. The three other partners contributed 140, 420 and 80 hours respectively. His basis in his partnership interest at the beginning of 2019 was $44,000. His Form K-1 from Harrison Tubulars is attached. B. George is a shareholder of Amberson Brothers, Inc., an S corporation. He owns 20 percent of all shares in the corporation, George devoted only 100 hours to the operation of the corporation. The other shareholder contributed only 40 hours to the corporation. The corporation has no employees. His basis in his stock at the beginning of 2019 was $25,000. His Form K-1 from Amberson Brothers, Inc. is attached INDIVIDUAL PRACTICE SET #2 GEORGE AND NILA AMBERSON INDIVIDUAL FEDERAL INCOME TAX RETURN 2019 ANNUAL EDITION ALL DATES RELATE TO YEAR 2019 UNLESS STATED OTHERWISE 1.0 INTRODUCTION: You have been employed to complete the 2019 Federal income tax return for George and Nila Amberson. The Ambersons have provided you with original copies of all third-party documents filed with the IRS, such as W- 2's, 1099's, and K-1's. They have also provided you with adequate written documentation to substantiate all transactions mentioned in this case. Lastly, they have provided you with copies of their respective 2018 Federal income tax returns. 1.1 Taxpayer Biographical Information: Biographical data relating to the Ambersons are as follows: George Cohan Amberson, SSN 448-56-2301. Born February 26, 1969. Operated unincorporated landscape engineering business in Temple, Texas during the entire year. Nila Rademaker Amberson, SSN 460-30-2020. Born November 11, 1969. Employed as a professor of English literature at Howard Payne University in Brownwood, Texas during the entire year. George and Nila Amberson were married in Temple on February 14. They reside at 315 West Avenue, Temple, Texas 76501. Their daytime telephone number is (254)555 3976. avable until y Employee's social security number 460-30-2020 b Employe lentification number (EN 72-5415634 e Employer's name, address, and ZIP code 52000.00 Soft, court, OMB No. 1545-0008 F4311 me Wages, lps, other compensation t soon security wape 52000.00 5 Medicae wages and tips 52000.00 7 Social securly tips Visit the IRS Wwbo i le www.h.govuta 2 Federal income tax with 10400.00 Social Security tax witheid 3224.00 6 Medicare tax withold 754.00 # Allocated Tips HOWARD PAYNE UNIVERSITY 1000 FISK AVE BROWNWOOD, TX 76801 d Control number 10 Dependent care benefits Last name But It Nonqualified plans Se instructions for box IP Employee's first name and initial NILA R AMBERSON 315 WESI AVE TEMPLE, TX 76501 Employee's address and ZIP code 16 St Employer's state ID number 16 Stewage, p . 57 state income tax 18 Local wages, Local income tax 20 L Department of the Treasury-hal Revenue Seri Wago and Tax - Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service 2019 L . Some a available CORRECTED (it checked) 3000- 2019 HALSEY CORPORATION WASHINGTON 3rd.STS SPRINGFIELD 112701 Dividends and Distribution 3000 - Porn 1000-DIV Totalcaps U p Set 130 Copy For Recipient cafe raceste moment 53451789 448-56-2303 CERCE AND NILA AMBERSON WEST AVE CONNE TEMPLE, TX 76501 FATCA on 10 Examptntarost dvidenan 11 sonte provato cover For 1090-DIV keep for your records) 1099 -Div Updale App Some account available until CORRECTED checked) PAYER' name strade city of town, thet or povinca, country, Zip regn pou n d phone no Total dinary dividends OMB NO. 1545-0110 4000 DRAPER CORPORATION 902 WASHINGTON AVE HOUSTON, TX 77002 2019 11 O dividends Dividends and Distributions 400 Do Forn 1058-01M 2 Totul capital distr 2 Uvecas Bec, 1250 Cain PAYER'S oder erfitab Copy For Recipient RECIPENT'Senticion De De Section 1200 Collectibles A gain 76--1151234 448-56-2301 PEPERTSTE Nedividend destrution Federal income with This is a Information being furnished to I r ecent For Free US Service, you are required to mengen GEORGE AMBERSON Stratos encang aplin 315 WEST AVE Oy brown, use provho ry, and ZIP or even used TEMPLE, TX 76501 FATCAI requirement Cash in New unction may be Impored on you the income is able and the IRS determine that it has to be p resende Speed pri Rete borbenetton aap for your recorda) www.ingowform 1 Dep o f the Truthmal Revenue Terms 100 1099 ON available until 200- 2019 Dividends and Distributions INTEWORD GROWTH FUNT 300 WESI PERSHING KANSAS CITY, MO 64105 150- 1000-DIV 12000 U 700- Copy For Recipen 460-30-2020 76-6678001 TCPENT'S nane HILA ADON 315 WEST AV THE TX 76501 1090-DIV 1099-01V PAYER' S I CORRECTED (f chocked) weety or on the orphos, country, Payor's hair poucos are telephone OMEHS 1545-0112 2019 H FIRST RATIONAL BANK OF TEMPLE 1700 EASI AVE TEMPLE, IX 76502 Interest Income inc COOR- Porn 1000-INT 2 Ey with Copy PAYS RECIPES de courber S S 448-56-2301 on US, and the For Recipient 74-6767005 RECENT TO Federa lex with hantaxpans For US. de los GEORGE & NILE AMBERSON E xpl te p l.10) STA 315 WEST AVE Co p con 2 oorwin postal de TALE, 2X 76501 Verde FAYCANOS This is important la Information and is boing furnished to the Internal Revenue Service. If you are required le return penalty or nation may be pored on you the income determhes that not been reported padu bond CUP coop for your record F 1000-INT 1099-INT Update Apple Some account available until CORRECTED O checkods. 1900 BASIVE IBILE. TX 76502 2019 Interest Income 10000 1089-INT Copy For Boolplant 7--234588 460-30-2020 SISESTAVE FATCA 1000 1099-INT CORREO 2019 Interest Income DAN 10 ter 1029-INT Copy For Recipient 76-116888 60-30-2020 ON 35 VESTAVE 1099-INT PU14 U10 Q Update Some acc avalable Description Of Asset: Date of Acquisition: Date of Sale: Proceeds from Sale: Method of Acquisition: Method of Sale: Silver tea Service 9/25/06 7/12/19 $900 Received by George as a gift. Basis to donor was $300 FMV at time of Gift was $700. Sold to unrelated neighbor * The donor paid no gift tax on the gift. All assets listed above were held by the Ambersons for investment purposes. Other Investments: A. George is a general partner of Harrison Tubulars, LP. He owns a 15 percent interest in the partnership. He devoted 200 hours to the operation of the partnership. The three other partners contributed 140, 420 and 80 hours respectively. His basis in his partnership interest at the beginning of 2019 was $44,000. His Form K-1 from Harrison Tubulars is attached. B. George is a shareholder of Amberson Brothers, Inc., an S corporation. He owns 20 percent of all shares in the corporation, George devoted only 100 hours to the operation of the corporation. The other shareholder contributed only 40 hours to the corporation. The corporation has no employees. His basis in his stock at the beginning of 2019 was $25,000. His Form K-1 from Amberson Brothers, Inc. is attached

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