Jonathan and Danielle Snow are married and live at 1800 Winterland Place, Virginia Beach, VA 23453. They have two children Arielle and Jason who lived with them the entire year. They do not wish to contribute to the Presidential Election campaign fund. Their daytime telephone number is 757-555-6678. Note: Use your own name in place of Arielle Snow.

Below is their information:

Name Birthdate SSN

Jonathan T. Snow 02/28/76 227-15-5555

Danielle T. Snow 12/21/78 226-21-7948

(Your Name) Snow 01/04/2008 226-13-4594

Jason P. Snow 10/16/2006 385-14-8972

3. Alimony paid to Jonathans former spouse Goldy Digger (SSN: 224-16-7777) whom he divorced in 2002. $9,640.

4. Jonathans Gambling winnings: from Harrahs Casino (EIN: 13-2229999) in Atlantic City, NJ $1,200 won on 7/8).

5. Jonathan and Danielle received From 1099-B (basis was reported to IRS) with the following capital transactions. No adjustment codes are needed. Enter on Form 8949 of Sch. D:

Item Purch. Sold Sales price Basis

40 shares - OMG stock 10/13/12 08/13/19 $3,460 $ **

50 shares - LOL stock 11/10/18 09/21/19 $ 4,500 $ 5,280

100 shares - HUH stock 6/21/13 07/26/19 $ 2,400 $ 1,000

** The Snows originally purchased 150 shares of the OMG stock for $6,450.

6. Jonathan likes to spend his spare time practicing photography. He wants to specialize in structural photography. Pursuant to this desire, Jonathan has a photography business and incurs the following expenses:

Photography supplies $1,840

Travel to locations to take photos 2,872

During the year, Jonathan sells 7 photos for $200 each. (He received Form 1099-Misc from ACME Co.) In the last five years, Jonathan has had similar results with this business.

7. As a school teacher, Danielle is often asked to help her neighbors children. She does this work on the side. This year, she began an entrepreneurial venture (1/08/19) which is small, but profitable. Because she helps on location, Danielle has no rent expense. She did not set up a home office either. She also did not make any payments that would require filing Forms 1099. Below is the information for Danielles cash basis helping business:

Name: A-Plus Learning

Business address and ID: (Use personal information)

Business Activity type: Education Services

Business Activity Code: 611000

Tutoring Fees $5,240 (No Forms 1099-MISC received)

Expenses:

Business Miles 184

Total Commuting Miles 9400

Other Personal Miles 5800

Total Miles driven 15,384

(Danielle keeps a written log of her auto miles. Use the standard mileage rate.)

City business license $150

Supplies $210

Liability Insurance $130

8. During the year, Jonathan and Danielle paid the following amounts (all of which can be substantiated):

Home mortgage interest (Commerce Bank) $17,640

Mastercard interest 750

Real estate taxes on personal residence 3,800

Property taxes on cars 632

Unreimbursed hospital bills 2,200

Prescription medicine 380

New eyeglasses and eye check for Jack 450

Income tax preparation fee 200

Gambling losses 1,800

Charitable contributions:

Church (receipt) 930

VA Democratic Party (receipt) 220

United Way (receipt) 120

Noncash (Salvation Army) (receipt) 235

Owens family (house fire victims) 100

9. Because their home is so close to the beach, the Snows rented out their home for one week in July. During that time, the Snows went away on vacation. They received $2,400 in rental income. The utilities for that week were $134. (Hint: See Example 8-9 in Ch. 8.)

10. As a teacher, Danielle spent a total of $215 on her class for supplies, teaching aides, etc. She kept her receipts.

11. Danielles father passed away in 2018. In February 2019, Danielle received a check for $10,000 of life insurance proceeds. Danielles mother Leah Hall also received a check for $80,000 of life insurance proceeds which she immediately invested in a certificate of deposit.

12. The Snows made quarterly estimated tax payments on Form 1040-ES because they thought their federal withholdings would not be enough to cover the additional income from the photography business, rental and tutoring business.

Paid 4/15/2019 $300

Paid 6/14/2019 $300

Paid 9/15/2019 $300

Paid 1/10/2020 $300

13. If they have any amount due or refund, they want it handled by a check.

Required: Complete Form 1040 for Jonathan and Danielle Snow for the 2019 tax year using the TaxAct software.

Make realistic assumptions about any missing information. You may ignore Alternative Minimum Tax (AMT)