Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane's Social Security number is 123-45-6789. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. During 2018, Jane had the following income and expense items:

$100,000 salary from Legal Services, Inc.

$20,000 gross receipts from her typing services business.

$700 interest income from Acme National Bank.

$1,000 Christmas bonus from Legal Services, Inc.

$60,000 life insurance proceeds on the death of her sister.

$5,000 check given to her by her wealthy aunt.

$100 won in a bingo game.

Expenses connected with the typing service:

$9,500 interest expense on a home mortgage (paid to San Jose Savings and Loan).

$15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2011. Jane had paid $14,000 for the silverware onJuly 1, 2002. She was reimbursed $10,000 by her insurance company.

Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2008. Joan declared bankruptcy on August 14, 2011, and was unable to repay the loan. Assume that the loan is a bona fide debt.

Legal Services, Inc., withheld Federal income tax of $15,000.

Alimony of $10,000 received from her former husband, Ted Smith.

Interest income of $800 on City of Boca Raton bonds.

Jane made estimated Federal tax payments of $1,000.

Sales taxes from the sales tax table of $953

.Charitable contributions of $2,500.

On November 1st, 2018, jane was involved in an automobile accident. At the time of the accident her automobile had an FMV of 45,000. After the accident the FMV was 38,000. Jane acquired her car on may 2, 2017 at a cost of 52,000. Janes car was covered by insurance but because the policy had a 5000 deduction clause jane decided not to file a claim.

Part 1Tax Computation

Compute Jane Smith's 2019 Federal income tax payable (or refund due). I specifically need help with schedule 1 and the 1040.

Question

Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane's Social Security number is 123-45-6789. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. During 2018, Jane had the following income and expense items:

$100,000 salary from Legal Services, Inc.
$20,000 gross receipts from her typing services business.
$700 interest income from Acme National Bank.
$1,000 Christmas bonus from Legal Services, Inc.
$60,000 life insurance proceeds on the death of her sister.
$5,000 check given to her by her wealthy aunt.
$100 won in a bingo game.
Expenses connected with the typing service:

$9,500 interest expense on a home mortgage (paid to San Jose Savings and Loan).

$15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2011. Jane had paid $14,000 for the silverware onJuly 1, 2002. She was reimbursed $10,000 by her insurance company.

Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2008. Joan declared bankruptcy on August 14, 2011, and was unable to repay the loan. Assume that the loan is a bona fide debt.

Legal Services, Inc., withheld Federal income tax of $15,000.

Alimony of $10,000 received from her former husband, Ted Smith.

Interest income of $800 on City of Boca Raton bonds.

Jane made estimated Federal tax payments of $1,000.

Sales taxes from the sales tax table of $953

.Charitable contributions of $2,500.

On November 1st, 2018, jane was involved in an automobile accident. At the time of the accident her automobile had an FMV of 45,000. After the accident the FMV was 38,000. Jane acquired her car on may 2, 2017 at a cost of 52,000. Janes car was covered by insurance but because the policy had a 5000 deduction clause jane decided not to file a claim.

Part 1Tax Computation

Compute Jane Smith's 2019 Federal income tax payable (or refund due). I specifically need help with schedule 1 and the 1040.

Accepted Answer

The Answer is in the image, click to view ...

Question

Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Modern Internal Auditing Appraising Operations And Controls

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question