Jane Ann Smith and Joshua Roger Smith are married taxpayers, ages 35 and 33 respectively. They have two children, ages 5 and 6 who live with them the entire year. Below is their information for 2019: They have wages, dividend, interest income, and capital gain/losses. Please see the related forms. Joshua owns a sole proprietorship called JRS Tools, which is a reseller of small tools. See the attached P & L. Please consider the following: o Schedule C O SE Tax o Depreciation o Home office o QBI deduction They have 7,000 in medical expenses. They donated cash of 11,000 to the kidney Foundation. They paid mortgage interest. See the 1098. They paid 12,500 in state and local taxes (income tax, property tax, etc.) They have all the necessary receipts to substantiate their deductions. During the year, they sold their home for 625,000 with an adjusted basis of 300,000. They lived in the home for 4 years and both owned it. They did not receive a 1099 S. They paid 8,000 in qualified child care expenses. . Please prepare Form 1040 and all related schedules. 22222 Void U a Employee's social security number I000-00-0000 For Official Use Only OMB No. 1545-0008 b Employer identification number (EIN) 00-000000000 c Employer's name, address, and ZIP code Employers R Us 1 Wages, tips, other compensation 70,000 3 Social security wages 70,000 5 Medicare wages and tips 70,000 7 Social security tips 2 Federal income tax withheld 6,952 4 Social security tax withheld 3,000 6 Medicare tax withheld 1,200 8 Allocated tips d Control number 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Jane A. Smith 13 Statutory employoo Retirement Third party sick pay 125 1 W 13N Someplace, UT 01010 14 Other f Employee's address and ZIP code 15 State Employer's state ID number UT 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, etc. 17 State income tax 70,000 3.000 2019 Department of the Treasury-Internal Revenue Service W-2 Wage and Tax Statement Form For Privacy Act and Paperwork Reduction Copy A For Social Security Administration - Send this entire page with Act Notice, see the separate instructions. Form W-3 to the Social Security Administration; photocopies are not acceptablo. Cat. No. 10134D Do Not Cut, Fold, or Staple Forms on This Page Payer. Investing National Fir! 2019 Form 1099-DIV $ 1,200.00 SUIVIIVIARY INFURIVIATION DIVIDEND AND DISTRIBUTIONS 1a Total ordinary dividends 1b Qualified dividends 2a Total capital gain distributions 2b Unrecaptured 1250 gain 2c Section 1202 gain 2d Collectibles 3 Nondividend distributions 4 Federal income tax withheld 5 Section 199A dividends 7 Investment expenses 8 Foreign country 9 cash liquidation distributions 10 Noncash Liquidations 11 Exempt-interest dividends 12 Specified private activity bond interest (AMT) Foreign tax paid 2019 Form 1099-INT $ 1,100.00 INTEREST INCOME 1 Interest income 2 Early withdrawal penalty 3 Interest on US savings bonds 4 Federal income tax withheld 5 Investment expenses 6 Foreign tax paid 7 Foreign country 8 Tax exempt interest 9 Specified Private Activity Bond interest 10 Market Discount 11 Bond Premium 12 Bond Premium on US obligations 13 Bond Premium on tax exempt bond 14 Tax exempt bond CUSIP 15 State 16 State Identification NO 17 State Tax withheld Proceeds Basis Gain or Loss FORM 1099-B TOTALS SUMMARY SHORT-TERM GAINS OR LOSSES BOX A Basis reported to the IRS BOX B Basis not reported to the IRS $ 15,000.00 $ 21,000.00 $ (6,000.00) LONG-TERM GAINS OR LOSSES BOX D Basis reported to the IRS BOX E Basis not reported to the IRS $ 5,000.00 $ 4,000.00 $ 1,000.00 JSR TOOL P&L Sales $ 20,000.00 COGS Beginning Inventory Purchases Ending inventory COGS $ 6,000.00 $ 4,000.00 $ 5,000.00 $ 5,000.00 Other expenses Advertising Legal and Professional fees Office supplies Licenses Total OTHER Expenses before depreciation and home office deduction $ $ $ $ $ 750.00 1,200.00 250.00 50.00 2,250.00 Other information: He uses the simplified method for home office deduction. His home office is 200 square feet. He bought a machine for use in his business. It cost 2,050. Mortgage Interest Statement I CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or Caution: The amount shown may OMB No. 1545-1380 province, country, ZIP or forelgn postal code, and telephone no. not ba fully deductible by you. Limits based on the loan amount 2019 and the cost and value of the Mortgage Company secured property may apply. Also, you may only doduct Interest to the 32 W 15 S extent it was incurred by you, Someplace, UT 01010 actually paid by you, and not rolmbursed by another person. Form 1098 1 Mortgage Interest received from payer(syborrower(s) 6,250 RECIPIENT'S/LENDER'S TIN PAYER'S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage origination date principal 435,000 01/01/2019 4 Refund of overpaid 5 Mortgage Insurance interest premiums PAYER'S/BORROWER'S name 6 Points pald on purchase of principal residence Joshua R. Smith $ Copy B For Payer/ Borrower The information in boxes 1 through 9 and 11 Is Important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6, or because you didn't report the refund of interest (box 4); or because you claimed a nondeductible itern. Street address (including apt. no.) 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked, or the address or description Is entered in box 8. 1 W 13 N Chty or town, state or province, country, and ZIP or foreign postal code 8 Address or description of property securing mortgage (sen Instructions) Someplace, UT 01010 10 Other 9 Number of properties securing the mortgage 11 Mortgage acquisition date Account number (see Instructions) Form 1098 (Keep for your records) www.lrs.gov/Form1098 Department of the Treasury - Internal Revenue Service