Key Component:

Using the case data from the attachedCase 1,complete the attachedtemplatethat has the respective tax forms (page 1 of form 1040 and schedules) to complete the tax return. Complete all the applicable parts of the tax forms. Also, address any instructor feedback provided in the milestone submissions.

Requirements:

Submit your tax return and computations to the dropbox identified for that submission.

Please complete the assignment using the attachments.

Brian and Sheila Williams were married in October of 2005. They live at 1000 Main Street, Atlanta, GA 33127. Bria School. Brian's social security number is 555-11-1111 and Sheila's social security number is 555-22-2222. They hav May 12th). Jayla's social security number is 555-33-3333. In 2013, Brian's wages was $45,860 while Sheila's was $43 Included or Excluded Items Two years ago, the taxpayer loaned a friend $2000. The friend has filed for bankruptcy this year and will not be able Earned $100 interest on county municipal bonds Found a diamond worth $1000 on the ground Received $500 in death benefits fron Brian's father Received $4,000 court settlement. $1,000 was punitive damanges. Brian paid $400/month in child support Received a $1000 gift from his brother Sheila won $100 playing bingo Brian paid $200/month in alimony to his ex-wife Sheila received a $1000 gift from her mother Sheila spent $300 on supplies for her classroom Portfolio Investments Stock Red Stock White Stock Blue Stock Black Stock Yellow Stock Acquired 2/1/2013 6/11/2006 10/1/2002 3/6/2013 4/5/2000 Interest Income Source Money Market Account Savings Account State Municipal Bonds Amount $200 $25 $35 Sold 10/5/2013 10/15/2013 8/3/2013 12/15/2013 N/A Sales Price $6,000 $5,000 $2,000 $3,000 N/A Cost (Basis) $2,500 $4,000 $10,000 $5,000 $5,000 Rental Property They own and rent two pieces of residential real estate in Miami, FL. These properties were acquired with cash (so estate broker licenses in Georgia and Florida. They dedicate enough hours (through their business) to qualify as a \"r Property 1 The first property is located at 17750 NW 17th Ave, Miami, FL. They collect $1,000 monthly in rent. The property w show that the value of the land is $30,000 and the value of the home was $90,000 when purchased. They actively p The property has the following expenditures: Property tax Repairs Insurance Washing Machine Refrigerator Furniture $7,000/yr $ 900/yr $1,200/yr $300 $700 $2,000 (purchased 6/2/2012) (purchased 7/1/2013) (purchased 4/1/2011) Property 2 The second property is located at 5610 NW 11th Ave, Miami, FL. They collect $1,500 monthly in rent. The property records show that the value of the land is $20,000 and the value of the home was $80,000 when purchased. They a The property has the following expenditures: Property tax Repairs Insurance Legal fees Advertising Expense $6,200/yr $3,000/yr $1,200/yr $ 500/yr $ 500/yr n Street, Atlanta, GA 33127. Brian is a postal service worker. Sheila is a teacher at Grady High umber is 555-22-2222. They have a dependent daughter Jayla who is 10 years old (Born on as $45,860 while Sheila's was $43,590. or Excluded Items ptcy this year and will not be able to repay Qualified Dividends $0 $100 $0 $0 $300 ties were acquired with cash (so there are no mortgages on the homes). They both have real h their business) to qualify as a \"real estate professional\" with regard to these properties. monthly in rent. The property was purchased June 30, 2010 for $150,000. The tax records when purchased. They actively participate in the management of the real property. urchased 6/2/2012) urchased 7/1/2013) urchased 4/1/2011) Reasoning for Incl 0 monthly in rent. The property was purchased on June 12, 2010 for $100,000. The tax $80,000 when purchased. They actively participate in the management of the real property. Reasoning for Including or Excluding and if Including, Indicate amount to include Olagbemi, Felicia: Added more words here as applicable. 2013 Form 1040 Department of tInternal Revenue Service U.S. Individual Tax Form OMB No.1545-0074 For the year Jan.1--Dec. 31,2013, or any other tax year beginning ,2013, IRS Use Only--Do not write or staple in this ,20 See Separate Instructions Your first name and initial Last name Social Security Number If a joint return, spouses first nameLast Spouse Social Security Num name Home address( number and street). If you have a P.O. Box, see instructions Make Sure that the SSN(s) ab and on line 6c are correct City, town, or post office, state, and zip code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campa Check here if you, or your spo Foreign country name Foreign province/state/country Foreign postal code checking this box below will no refund. Filing Status 1. Single 4.Head of Household (with qualifying person.) (See instru Check only one box 2.. married filing jointly the qualifying person is a child but not your dependent, en 3. Married filing separately. Enter spouse's SSN above child's name here Exemptions If more than four dependents, see instructions and check here and full name here. 5. Qualifying Window(er) with dependent child 6a Yourself. If someone can claim you as a dependent, do not check box 6a b spouse c. Dependents (1) First name Last name (2) dependents (3) dependents (4) check if child under age 17 social security number relationship to you qualifying for tax credit see instructions. d. Total number of Exemptions Claimed Income 7 8a Wages, salaries, tips, etc. Attach Forms (W-2) Attach Form(s) b Tax-exempt interest. Do not include on line 8a W-2 here. Also 9a Ordinary dividends. Attach Schedule B if required attach Forms(s) b Qualified dividends W-2 and 1099-R 10 Taxable refunds, credits, or offsets state or local income taxes if tax was withheld. 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ If you did not 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here get a W-2, 14 other gains or (losses). Attach Form 4797 see instructions 15a IRA distributions 15a b Taxable amount 16a Pensions and annuities 16a b Taxable amount 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F 19 Unemployment compensation 20a Social security benefits 21 22 Adjusted 23 Taxable interest. Attach Schedule B if required 8b 9b 20a b Taxable amount other income. List type and amount combine the amounts in the far right column for lines 7 through 21. TThis is your total income. Educator expenses 23 Certain business expenses of reservists, performing artists, and fee-basis government. Attach Form 2106 or 2106-EZ Gross Income 24 24 25 Health-savings account deduction. Attach Form 8889 25 26 Moving Expenses. Attach Form 3903 26 27 Deductible part of self-employment tax. Attach Schedu 27 28 Self-employed SEP, SIMPLE, and qualified plans 28 29 Self-employed health insurance deduction 29 30 Penalty on early withdrawal of savings 30 31a Alimony paid b. Recipient' 31a 32 IRA deduction 32 33 Student loan interest deduction 33 34 Tuition and fees. Attach Form 8917 34 35 Domestic production activities deduction. Attach Form 8903 35 36 Add lines 23 through 35 37 Subtract line 36 from line 22. This is your adjusted gross income. y--Do not write or staple in this space See Separate Instructions Social Security Number Spouse Social Security Number Make Sure that the SSN(s) above and on line 6c are correct . Presidential Election Campaign Check here if you, or your spouse if filing jointly, checking this box below will not change your tax you spouse qualifying person.) (See instructions.) If child but not your dependent, enter this with dependent child Boxes checked on 6a and 6b (4) check if child under age 17 qualifying for tax credit see instructions. No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines ab 7 8a 9a 10 11 12 13 14 15b 16b 17 18 19 b Taxable amount 20b 21 22 36 37 SCHEDULE A (Form 1040) Itemized Deductions Department of the Treasury Internal Revenue Service (99) Information about Schedule A and its separate instructions is at www.irs.gov/schedulea Attach to Form 1040. Name(s) shown on Form1040 Caution. Do not include expenses reimbursed or paid by others. Medical and Dental Expenses 1 Medical and dental expenses (see instructions)..... 2 2 Enter amount from Form 1040, line 38 3 Multiply line 2 by 10% (.10). But if either you or your spouse was born before January 2, 1949, multiply line 2 by 7.5% (.075) instead 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. 5 State and local (check only one box): Taxes You a b Income tax or General sales tax 6 Real estate taxes (see instructions) . 7 Personal Property taxes. . . . 8 Other taxes. List type and amount > Paid } . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Add lines 5 through 8 10 Home mortgage interest and points reported to you on Form 1098 11 Home mortgage interest not reported to you on Form 1098. If paid Interest You Paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address Note. Your mortgage interest deduction may be limited (see instructions). 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . . . . 13 Mortgage insurance premiums (see instructions) . . . . . 14 Investment interest. Attach Form 4952 if required. (See instructions.) 15 Add lines 10 through 14. . . . . . . . . . . . . . . . . . . 16 Gifts by cash or check. If you made any gift of $250 or more, Gifts to Charity . . . . . . . see instructions. . . . . . . . . . . . . . . . 17 Other than by cash or check. If any gift of $250 or more, see if you made a gift and got a instructions. You must attach Form 8283 if over $500 . . . benefits for it ., Casualty see andinstructions Theft Losses Job Expenses and Certain Miscellaneous Deductions 18 Carryover from prior year . . . . . . . . . . . . 19 Add lines 16 through 18. . . . . . . . . . . . . . . . . 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . 21 Unreimbursed employee expensesjob travel, union dues, ob education, etc. Attach Form 2106 or 2106-EZ if required. (see instructions) 22 Tax preparation fees . . . . . . . . . . . . . 23 Other expensesinvestment, safe deposit box, etc. List type and amount 24 Add lines 21 through 23 . . . . . . . . . . . . 25 Enter amount from Form 1040, line 38 25 26 Multiply line 25 by 2% (.02). . . . . . . . . . . . . . . . 27 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0-. 28 Otherfrom list in instructions. List type and amount Other Miscellaneo us Deductions 29 Is Form 1040, line 38, over $150,000? Total Itemized Deductions . . . . . . . Total Itemized Deductions No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C OMB No. 1545-0074 2013 ductions www.irs.gov/schedulea Attachment Sequence No. 07 Your social security number 1 . . . . . 3 . . 4 5 6 7 8 9 10 11 12 13 14 15 . . . . . . . . 16 17 18 . . . . . . . 19 20 21 22 23 24 26 27 28 } . . 29 Schedule A (Form 1040) 2013 SCHEDULE B (Form 1040A or 1040) Interest and Ordinary Dividends Atach to Form 1040A or 1040. Informaton about Schedule B (Fo Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Part I Interest (See instructions on back and the instructions for Form 1040A, or Form 1040, line 8a.) Note. If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. Also, show that buyer's social security number and address 2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a . . . . . . . . . . . . . . . . . . . . . . Note. If line 4 is over $1,500, you must complete Part III. 5 List name of payer 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . Part II Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a.) Note. If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Note. If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Part III 7a At any time during 2013, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign Foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . Accounts If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial and Trusts Accounts (FBAR), formerly TD F 90-22.1, to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Part III 7a At any time during 2013, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign Foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . Accounts If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial and Trusts Accounts (FBAR), formerly TD F 90-22.1, to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those (See requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . instructions on b If you are required to file FinCEN Form 114, enter the name of the foreign country where the back.) financial account is located 8 During 2013, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If \"Yes,\" you may have to file Form 3520. See instructions on back . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2013 OMB No. 1545-0074 aton about Schedule B (Form 1040A or 1040) and its instructons is at www.irs.gov/scheduleb. 2013 Attachment Sequence No. 08 Your social security number Amount 1 2 3 4 Amount 5 6 reign account; or (c) received Yes No er a financial account (such as . ncial authority? dule B (Form 1040A or 1040) 2013 SCHEDULE D (Form 1040) Capital Gains and Losses Atach to Form 1040 or Form 1040NR. Informaton about Schedul Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Part I Your social security number Short-Term Capital Gains and LossesAssets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these 1b Totals foron allForm transactions reported on Form(s) transactions 8949, leave this line blank and 8949 with 1b . go to line Box A checked . . . . . . . . . . . . . (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . 4 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . 5 6 7 Part II Long-Term Capital Gains and LossesAssets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these 8b Totals foron allForm transactions reported on Form(s) transactions 8949, leave this line blank and 8949 with 8b . go to line Box D checked . . . . . . . . . . . . . (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g) 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . 10 Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H 11 12 13 14 15 Schedule D (Form 1040) 2013 OMB No. 1545-0074 2013 Attachment ecurity number Sequence No. 12 g) tments 8949, Part I, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 4 5 6 ( ) 7 g) tments 8949, Part II, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 11 12 13 14 ( 15 Schedule D (Form 1040) 2013 ) SCHEDULE E (Form 1040) Supplemental Income and Loss(From rental real estate, royaltes, partnerships, S corporatons, estates Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Part I Your social security numbe Income or Loss From Rental Real Estate and Royalties Note. If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2013 that would require you to file Form(s) 1099? (see instructions) B If \"Yes,\" did you or will you file required Forms 1099? 1a Yes Yes Physical address of each property (street, city, state, ZIP code) A B C 1b Type of Property (from list below) A B 2 For each rental real estate property listed above, report the number of fair rental and only if you meet the requirements to file as a qualified joint venture. See instructions. C Personal Use Days A B C personal use days. Check the QJV box Type of Property: 1 Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 Commercial 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: Properties: A 3 Rents received . . . . . . . . . . . . . 3 4 Royalties received . . . . . . . . . . . . 4 Expenses: 5 Advertising . . . . . . . . . . . . . . 6 Auto and travel (see instructions) . . . . . . . 7 Cleaning and maintenance . . . . . . . . . 8 Commissions. . . . . . . . . . . . . . 9 Insurance . . . . . . . . . . . . . . . 10 Legal and other professional fees . . . . . . . 11 Management fees . . . . . . . . . . . . 12 Mortgage interest paid to banks, etc. (see instructions) 13 Other interest. . . . . . . . . . . . . . 14 Repairs. . . . . . . . . . . . . . . . 15 Supplies . . . . . . . . . . . . . . . 16 Taxes . . . . . . . . . . . . . . . . 17 Utilities . . . . . . . . . . . . . . . . 18 Depreciation expense or depletion . . . . . . . 19 Other (list) 20 Total expenses. Add lines 5 through 19 . . . . . 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) . . . . . . . Fair Rental Days 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 B 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) . . . . . . . 21 22 ( )( ) 23a Total of all amounts reported on line 3 for all rental properties . . . . b Total of all 23a amounts reported on line 4 for all royalty properties . . . . c Total of all amounts reported 23b on line 12 for all properties . . . . . . d Total of all amounts reported on line 18 for all properties . . . . . . e Total of all amounts reported on line 20 for all properties . . . 23c . . . 23d 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . . 24 25 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040) 2013 OMB No. 1545-0074 2013 Attachment Sequence No. 13 Your social security number onal property, use Yes Yes Personal Use Days No No QJV C ( ) ( ) chedule E (Form 1040) 2013 ***This is a suggested depreciation schedule. You may adapt the schedule as long as the instructor can follow Name(s) shown on Form 1040 Property 1 *27.5 Residential Real Estate Market Purchase Price Basis 5 year MACRS Dep Rate Rate Washing Machine Refrigerator Furniture *27.5 Residential Real Estate Property 1 Total Property 2 **27.5 Residential Real Estate Market Purchase Price Basis Dep Rate **27.5 Residential Real Estate Property 2 Total ng as the instructor can follow your calculations. year MACRS Basis Dep. Amount 27.5 Residential Real Estate *27.5 Residential Real Estate