individual tax return project 2021?

a Employee's social security number 554-85-6549 b Employer identification number (EIN) 26-3356489 c Employer's name, address, and ZIP code Safe, accurate, Visit the IRS website at e file OMB No 1545-0008 FASTI Use www.irs.gov/ofile 1 Wages, tips, other compensation 2 Federal income tax withheld $142,000.00 $24,982.00 3 Social Security wages 4 Social Security tax withheld $142,800.00 $8,853.60 5 Medicare wages and tips 6 Medicare tax withheld $154,000.00 $2,223.00 7 Social Security tips 8 Allocated tips General Motors LLC 9832 Detroit Way Detroit, MI 54569 d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans e Employee's first name and initial Jim Smith 5453 Lebanon Road Mint Hill, NC 28227 Recent 13 Story olyo Thad-party Gay 12a See instructions for box 12 D$12,000.00 12b AA $6,500.00 12c 14 Other 12d f Employee's address and ZIP code 15 State Employer's state ID number NC 6000021346 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, oto 17 State income tax $142,000.00 $6,987.00 Form W-2 Wage and Tax Statement 2021 Department of the Treasury ---Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Jim and Linda have the following investment income: Truliant Interest: $1,554 USAA interest: $1,374 City of Charlotte Bonds: $1500 US Treasury Bonds: $850 (none of which is Series EE or 1 Bonds) Bank of America Dividends: $3,121 (qualified) IBM Dividends: $664 (qualified) Samsung Dividends: $1,177 (non-qualified) The Smiths did not own, control, or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the tax year. Jim and Linda have also engaged in some stock sales and purchases in 2021. On the following page you will find the transaction history. All of these transactions are covered and Form 8949 is required. Stock Ford McDonalds Bank of America H&R Block Disney Tesla Apple Chiptole Wells Fargo Ford Quantity Date Purchased Purchase Price 500 9/9/2005 $ 50,000.00 200 6/3/2020 $ 10,750.00 1000 11/12/2018 $ 411,000.00 250 8/5/2015 $ 65,300.00 150 5/14/1995 $ 7,500.00 200 12/15/2020 $ 75,000.00 100 8/7/2011 $ 17,500.00 50 9/9/2020 $ 2,750.00 700 8/7/2009 $ 20,500.00 200 1/31/2021 $ 21,000.00 Date Sold - Sales Price 1/9/2021 $ 42,500.00 2/1/2021 $ 8,225.00 3/17/2021 $ 325,000.00 4/30/2021 $ 52,250.00 6/3/2021 $ 33,500.00 6/15/2021 $ 120,000.00 7/8/2021 $ 37,750.00 8/2/2021 $ 750.00 10/11/2021 $ 24,350.00 Linda is a self-employed antiques dealer (NAICS Code 453310). Linda rents a space at a local antique shop but does most of the administrative work out of the home. The space at the local antique shop is for display only and has no office space available for Linda to work. Linda has prepared the following information in aiding you with the preparation of her sole proprietorship in which she materially participates. Linda has not incorporated the sole proprietorship or made an Selection. Linda uses the cash basis of accounting, and her home address is listed as the business address. The name of her business is My Little Treasures Antique Store. Linda does not want to defer any social security or medicare tax if given the option. Sales: $56,335 Cost of Goods Sold: $25,774 (no beginning or ending inventory) Advertising: $2,358 Contract Labor: $3,500 (required to and did issue 1099s) Office Supplies: $357 Rent: $6,500 Merchant account fees: $973 (credit card processing fees for accepting credit cards) Miscellaneous supplies: $474 (not Cost of Goods Sold) Legal and Professional Fees: $400 Travel: $1,559 Meals: $313 (100% deductible) Office in the home information (she wants to use the actual method and depreciate the home) Square footage of office space: 195 Total square footage of the home: 3245 Mortgage interest: $14,432 (Original mortgage was $375,000) Real Estate taxes: $4,575 Insurance: $1,647 Utilities: $3,194 Home purchased in 2018 for $445,000 (including land value of $50,000) and placed in service 7/1/18 Jim and Linda also own various rental property. One of their properties (1125 Central Avenue, Charlotte, NC 28205) is a single-family residence that was rented all year (365 days of rental use). Jim and Linda did not use the home in 2021 for personal purposes but are actively involved in finding tenants, doing repairs and other general duties required of being a landlord. They purchased the Central Avenue home and immediately began renting it on 6/1/16. The purchase price was $211,500 and the land was valued at $41,250 (included in purchase price). The home on Central Avenue had the following income and expenses for 2021. Rent Received: $24,000 ($2,000 per month) Mortgage Interest: $9,549 Real Estate Taxes: $1,856 Homeowners Association Dues: $450 Repairs and Maintenance: $3,125 (none of these repairs need to be capitalized) Insurance: $921 Lawn Care: $1275 Another one of their properties (543 S Ocean Blvd, North Myrtle Beach, SC 29582) is a vacation home that was rented 82 days and had personal use of 18 days in 2021. Jim and Linda also are actively involved in this rental home and prefer to use the IRS method. The home was purchased on 8/1/2000 for $375,000 and the land was valued at $225,000. The home in North Myrtle Beach had the following income and expenses for 2021: Rent Received: $38,263 Mortgage Interest: $12,275 Real Estate Taxes: $4,877 Insurance: $5,975 Management Fees: $5,105 (direct expense) Cleaning Fees: $2,500 Homeowners Association Dues: $4,200 Repairs and Maintenance: $2,525 (none of these repairs need to be capitalized) Utilities: $3164 Jim and Linda also own a mountain home (6646 Mountain View Way, Boone, NC 28607). This home is used primarily as a second home, but they did rent it to friends for two weeks in 2021. The home was purchased on 12/6/2009 for $625,750 and the land was valued at $153,650 (included in purchase price). Rent Received: $3,000 Real Estate Taxes: $2,925 Insurance: $3,224 Homeowners Association Dues: $600 Repairs and Maintenance: $3,004 (none of these repairs need to be capitalized Jim and Linda have other information they have provided to aid in preparation: Amount paid in 2021 for 2020 balance due on state income tax return: $839 Real estate taxes on additional land: $7,212 Cash contribution to United Way: $3,500 Cash contribution to church: $4,500 Non-cash contribution to Goodwill: $400 (FMV), property originally purchased for $3213 Credit card interest on personal purchases: $3,254 Vehicle property taxes based on value of vehicle: $422 Gambling losses: $2,887 Charitable contribution carryforward form donation of stock in 2020: $1,850 Jim and Linda really appreciate your help with their tax return. a Employee's social security number 554-85-6549 b Employer identification number (EIN) 26-3356489 c Employer's name, address, and ZIP code Safe, accurate, Visit the IRS website at e file OMB No 1545-0008 FASTI Use www.irs.gov/ofile 1 Wages, tips, other compensation 2 Federal income tax withheld $142,000.00 $24,982.00 3 Social Security wages 4 Social Security tax withheld $142,800.00 $8,853.60 5 Medicare wages and tips 6 Medicare tax withheld $154,000.00 $2,223.00 7 Social Security tips 8 Allocated tips General Motors LLC 9832 Detroit Way Detroit, MI 54569 d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans e Employee's first name and initial Jim Smith 5453 Lebanon Road Mint Hill, NC 28227 Recent 13 Story olyo Thad-party Gay 12a See instructions for box 12 D$12,000.00 12b AA $6,500.00 12c 14 Other 12d f Employee's address and ZIP code 15 State Employer's state ID number NC 6000021346 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, oto 17 State income tax $142,000.00 $6,987.00 Form W-2 Wage and Tax Statement 2021 Department of the Treasury ---Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Jim and Linda have the following investment income: Truliant Interest: $1,554 USAA interest: $1,374 City of Charlotte Bonds: $1500 US Treasury Bonds: $850 (none of which is Series EE or 1 Bonds) Bank of America Dividends: $3,121 (qualified) IBM Dividends: $664 (qualified) Samsung Dividends: $1,177 (non-qualified) The Smiths did not own, control, or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the tax year. Jim and Linda have also engaged in some stock sales and purchases in 2021. On the following page you will find the transaction history. All of these transactions are covered and Form 8949 is required. Stock Ford McDonalds Bank of America H&R Block Disney Tesla Apple Chiptole Wells Fargo Ford Quantity Date Purchased Purchase Price 500 9/9/2005 $ 50,000.00 200 6/3/2020 $ 10,750.00 1000 11/12/2018 $ 411,000.00 250 8/5/2015 $ 65,300.00 150 5/14/1995 $ 7,500.00 200 12/15/2020 $ 75,000.00 100 8/7/2011 $ 17,500.00 50 9/9/2020 $ 2,750.00 700 8/7/2009 $ 20,500.00 200 1/31/2021 $ 21,000.00 Date Sold - Sales Price 1/9/2021 $ 42,500.00 2/1/2021 $ 8,225.00 3/17/2021 $ 325,000.00 4/30/2021 $ 52,250.00 6/3/2021 $ 33,500.00 6/15/2021 $ 120,000.00 7/8/2021 $ 37,750.00 8/2/2021 $ 750.00 10/11/2021 $ 24,350.00 Linda is a self-employed antiques dealer (NAICS Code 453310). Linda rents a space at a local antique shop but does most of the administrative work out of the home. The space at the local antique shop is for display only and has no office space available for Linda to work. Linda has prepared the following information in aiding you with the preparation of her sole proprietorship in which she materially participates. Linda has not incorporated the sole proprietorship or made an Selection. Linda uses the cash basis of accounting, and her home address is listed as the business address. The name of her business is My Little Treasures Antique Store. Linda does not want to defer any social security or medicare tax if given the option. Sales: $56,335 Cost of Goods Sold: $25,774 (no beginning or ending inventory) Advertising: $2,358 Contract Labor: $3,500 (required to and did issue 1099s) Office Supplies: $357 Rent: $6,500 Merchant account fees: $973 (credit card processing fees for accepting credit cards) Miscellaneous supplies: $474 (not Cost of Goods Sold) Legal and Professional Fees: $400 Travel: $1,559 Meals: $313 (100% deductible) Office in the home information (she wants to use the actual method and depreciate the home) Square footage of office space: 195 Total square footage of the home: 3245 Mortgage interest: $14,432 (Original mortgage was $375,000) Real Estate taxes: $4,575 Insurance: $1,647 Utilities: $3,194 Home purchased in 2018 for $445,000 (including land value of $50,000) and placed in service 7/1/18 Jim and Linda also own various rental property. One of their properties (1125 Central Avenue, Charlotte, NC 28205) is a single-family residence that was rented all year (365 days of rental use). Jim and Linda did not use the home in 2021 for personal purposes but are actively involved in finding tenants, doing repairs and other general duties required of being a landlord. They purchased the Central Avenue home and immediately began renting it on 6/1/16. The purchase price was $211,500 and the land was valued at $41,250 (included in purchase price). The home on Central Avenue had the following income and expenses for 2021. Rent Received: $24,000 ($2,000 per month) Mortgage Interest: $9,549 Real Estate Taxes: $1,856 Homeowners Association Dues: $450 Repairs and Maintenance: $3,125 (none of these repairs need to be capitalized) Insurance: $921 Lawn Care: $1275 Another one of their properties (543 S Ocean Blvd, North Myrtle Beach, SC 29582) is a vacation home that was rented 82 days and had personal use of 18 days in 2021. Jim and Linda also are actively involved in this rental home and prefer to use the IRS method. The home was purchased on 8/1/2000 for $375,000 and the land was valued at $225,000. The home in North Myrtle Beach had the following income and expenses for 2021: Rent Received: $38,263 Mortgage Interest: $12,275 Real Estate Taxes: $4,877 Insurance: $5,975 Management Fees: $5,105 (direct expense) Cleaning Fees: $2,500 Homeowners Association Dues: $4,200 Repairs and Maintenance: $2,525 (none of these repairs need to be capitalized) Utilities: $3164 Jim and Linda also own a mountain home (6646 Mountain View Way, Boone, NC 28607). This home is used primarily as a second home, but they did rent it to friends for two weeks in 2021. The home was purchased on 12/6/2009 for $625,750 and the land was valued at $153,650 (included in purchase price). Rent Received: $3,000 Real Estate Taxes: $2,925 Insurance: $3,224 Homeowners Association Dues: $600 Repairs and Maintenance: $3,004 (none of these repairs need to be capitalized Jim and Linda have other information they have provided to aid in preparation: Amount paid in 2021 for 2020 balance due on state income tax return: $839 Real estate taxes on additional land: $7,212 Cash contribution to United Way: $3,500 Cash contribution to church: $4,500 Non-cash contribution to Goodwill: $400 (FMV), property originally purchased for $3213 Credit card interest on personal purchases: $3,254 Vehicle property taxes based on value of vehicle: $422 Gambling losses: $2,887 Charitable contribution carryforward form donation of stock in 2020: $1,850 Jim and Linda really appreciate your help with their tax return