Manual tax calculation with self-employed business income on excel sheet

Use the following information to complete Gary and Karen Holstrym's. 2021 federal income tax return. If amy information is missing, use reasonable assumptions to fill in the gaps. Ignore the altemative minimum tax for this problem. Fact: - Gary Holstrum (SSN: 222-33-4444; DOB: 04/01/1975) - Karen Holktrum (SSN: 55566-7777; DOB:09/03/1975) - Antonio Holstrass (SSN: 888-99-7777; DOB: 02/04/2000) - Georgiana Holstrum (SSN: 222-55-4444; DOB: 02/07/2003). - Both Antonio and Georgiana are children of Gary and Karen - Both Antonio and Georgiana are full-time students and qualify as federal income tax dependents of Gary and Karen. - They live at: 1234 Canal Blvd, Thibodaux, LA 70301. - Karen is a seventh-grade English teacher at the local middle school. - Gary has his own manufacturing business. Gary's business, Kool Beads, is an unincorporated manufacturer of Mardi Gras beads. The factory is located at 1003 LaPlace Avenue, New Orleans, LA 34455. Gary uses the accrual method of accounting in his business. He has the following transactions during the 2021 year: Kool's inventory on December 31,2021 is $165,000. Inventory was $140,000 on Jannary 1 , 2021. Kool's depreciation schedule is as follows: 1. Purchased $40,500 of office fumiture and equipment held for business use on March 4 , 2021. The assets have a 7 year life. Gary wants to maximize the current year deduction by taking the bonus depreciation. 2. Depreciation on recovery property acquired and placed into service: Gary did not elect a Section 179 deduction for any of the assets above, nor did he take advantage of the depreciation bonus. Gary's estimated taxes paid in 2021 include: $6,400 for federal income taxes each quarter and $1,600 for state income taxes each quarter. Karen Holstrum's salary for 2021 was $54,690. She had $6,600 withheld for federal income taxes and $1,750 withheld for Lomisiana state income taxes. The entire family is covered under health insurance through Karen's job. The cost of the insurance is included in the total cost of medical bills listed below. Gary and Karen's personal expenses for the year are as follows: Gary also donated 100 shares of QRS stock to the State University with a FMV of $9,500, on June 16,2021 . The stock was purchased in 2014 when the value was $1,500. QRS is a publicly traded stock. Gary and Karen paid $6,000 for tuition and fees for Antonio, who is a Junior at Nicholls State University. Antonio is living at home while attending college and he meets all of the tests to be claimed as a dependent. Gary and Karen choose to take the education credit over the tuition and fees deduction. Gary's father passed away in 2020 . In 2021, Gary and Karen received $50,000 in life insurance proceeds. Gary and Karen support Karen's mother, Joy Freud (333-66-9999), in an assisted living facility in Houma. They paid 75% of her support in 2021. Joy's only income is $10,000 nontaxable social security benefits. Joy had the Medicare for the full tax year. Gary and Karen had several stock transactions during the year: Interest and dividend income is as follows: Gary plays black iack at Harrah's Casino on occasion. This year he had $4,000 in gambling winnings and $5,000 in losses. Gary and Karen did not bury, sell, exchange, or otherwise acquire any financial interest in a virtual currency. Gary and Karen received their Economic Impact Payment (stimulus check) in the full amount before filing their 2021 tax return. Use the following information to complete Gary and Karen Holstrym's. 2021 federal income tax return. If amy information is missing, use reasonable assumptions to fill in the gaps. Ignore the altemative minimum tax for this problem. Fact: - Gary Holstrum (SSN: 222-33-4444; DOB: 04/01/1975) - Karen Holktrum (SSN: 55566-7777; DOB:09/03/1975) - Antonio Holstrass (SSN: 888-99-7777; DOB: 02/04/2000) - Georgiana Holstrum (SSN: 222-55-4444; DOB: 02/07/2003). - Both Antonio and Georgiana are children of Gary and Karen - Both Antonio and Georgiana are full-time students and qualify as federal income tax dependents of Gary and Karen. - They live at: 1234 Canal Blvd, Thibodaux, LA 70301. - Karen is a seventh-grade English teacher at the local middle school. - Gary has his own manufacturing business. Gary's business, Kool Beads, is an unincorporated manufacturer of Mardi Gras beads. The factory is located at 1003 LaPlace Avenue, New Orleans, LA 34455. Gary uses the accrual method of accounting in his business. He has the following transactions during the 2021 year: Kool's inventory on December 31,2021 is $165,000. Inventory was $140,000 on Jannary 1 , 2021. Kool's depreciation schedule is as follows: 1. Purchased $40,500 of office fumiture and equipment held for business use on March 4 , 2021. The assets have a 7 year life. Gary wants to maximize the current year deduction by taking the bonus depreciation. 2. Depreciation on recovery property acquired and placed into service: Gary did not elect a Section 179 deduction for any of the assets above, nor did he take advantage of the depreciation bonus. Gary's estimated taxes paid in 2021 include: $6,400 for federal income taxes each quarter and $1,600 for state income taxes each quarter. Karen Holstrum's salary for 2021 was $54,690. She had $6,600 withheld for federal income taxes and $1,750 withheld for Lomisiana state income taxes. The entire family is covered under health insurance through Karen's job. The cost of the insurance is included in the total cost of medical bills listed below. Gary and Karen's personal expenses for the year are as follows: Gary also donated 100 shares of QRS stock to the State University with a FMV of $9,500, on June 16,2021 . The stock was purchased in 2014 when the value was $1,500. QRS is a publicly traded stock. Gary and Karen paid $6,000 for tuition and fees for Antonio, who is a Junior at Nicholls State University. Antonio is living at home while attending college and he meets all of the tests to be claimed as a dependent. Gary and Karen choose to take the education credit over the tuition and fees deduction. Gary's father passed away in 2020 . In 2021, Gary and Karen received $50,000 in life insurance proceeds. Gary and Karen support Karen's mother, Joy Freud (333-66-9999), in an assisted living facility in Houma. They paid 75% of her support in 2021. Joy's only income is $10,000 nontaxable social security benefits. Joy had the Medicare for the full tax year. Gary and Karen had several stock transactions during the year: Interest and dividend income is as follows: Gary plays black iack at Harrah's Casino on occasion. This year he had $4,000 in gambling winnings and $5,000 in losses. Gary and Karen did not bury, sell, exchange, or otherwise acquire any financial interest in a virtual currency. Gary and Karen received their Economic Impact Payment (stimulus check) in the full amount before filing their 2021 tax return