Question
Joe and Jane Bowie are married taxpayers, filing jointly and have a son named Brandon. They live at 14000 Jericho Park Road, Bowie, MD 20785.
Joe and Jane Bowie are married taxpayers, filing jointly and have a son named Brandon. They live at 14000 Jericho Park Road, Bowie, MD 20785. Joe works as the director of information systems at Bowie State University (BSU). Jane is a stay-at-home mom. Their SSNs are Joe, 412-34-5670; Jane, 412-34-5671; and Brandon, 412-34-5672. Their birth dates are as follows: Joe, June 7, 1976; Jane, March 20, 1977; and Brandon, October 10, 2009. The Bowies own their home and paid $15,000 in mortgage interest during the year to Wells Fargo Bank and property taxes of $3,200. Assume they have no other deductible expenses. The Form W-2 Joe received from BSU contained the following information: Wages (box 1) = $79,002.50 Federal W/H (box 2) = $8,000.14 Social security wages (box 3) = $79,002.50 Social security W/H (box 4) = $ 4,898.16 Medicare wages (box 5) = $79,002.50 Medicare W/H (box 6) = $1,145.54 In addition, the Bowies own a small four-unit rental at 1015 Race Track Road, Bowie, MD 20785. The rental was purchased and placed in service on July 1, 2003, and was rented for the entire year. The following income and expense information relates to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations. Rental income $24,000 Real estate taxes 2,000 Utilities 1,500 Mortgage interest 3,800 Depreciation 7,200 Repairs and maintenance 1,300 Prepare the Bowies' federal tax return for 2015. Use Form 1040, Schedule A, Schedule E, and any other appropriate schedules. Assume they do not qualify for any credits (although they may). The taxpayers had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions.
Please prepare on a tax 1040 form1
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