Numbers: Wages, salaries, tips, etc. $__________

Taxable interest $__________

Taxable dividends $__________

Business income or (deductible loss) $__________

Capital gain or (deductible loss) $__________

Taxable IRA distribution $__________

Taxable pension distribution $__________

Rental real estate income or (deductible loss) $__________

Taxable social security benefits $__________

Taxable other income $__________

Qualified business income (QBI) deduction $__________

Federal income tax withheld $__________

Foreign tax credit $__________

What is the rate on their qualified dividends? __________

IS Barbaras business a specified service trade/business (SSTB) ____Yeso

Document Review Simulation - Jim and Carol Jenson NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, calculate the following amounts which would be reported on their 2017 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write $0. 1. Wages, salaries, tips, etc. 2. Taxable interest 3. Taxable dividends 4. Business income or (deductible loss) 5. Capital gain or (deductible loss) 6. Rental real estate income or (deductible loss) 7. Taxable other income 8. Deductible part of self-employment tax 9. Schedule A home mortgage interest deduction 10. Schedule A tax deduction 11. Schedule A miscellaneous deduction 12. Taxable income Jim and Carol Jenson, ages 48 and 47, respectively, are married and file a joint tax return. Jim is a CPA employed at Jan Apparel Company and Carol is a self- employed realtor. They have two dependent children in high school: John, age 17, and Mary, age 18. They have provided documentation for their year 5 (assume 2017) income and expenses --- see below. Assume that their 2017 standard deduction is $12,700 and the applicable personal/dependency exemption amount is $4,050 per qualifying individual. Jim and Carol have come to you for help in calculating the different components of taxable income for the year 2017. They have provided you with documents to 1 substantiate their income and expenses --- see below. You also have obtained the following information from interviewing them: INTERVIEW NOTES 1. Carol has documentation (not included below) for 2017 to prove the following income and expenses from her self-employment business as a realtor: Commissions received $49,100 Advertising expenses 15,300 Office expenses 3,810 Business gifts to 50 clients ($100 gift card to each) 5,000 Business computer purchased and put into service 12/1/17 2,400 They would like to take the maximum deduction for their expenses. 2. The Jenson's purchased a rent house on 1/2/17 for $150,000 ($100,000 allocated to the structure and $50,000 allocated to the land). They immediately rented it and have documentation (not included below) for the following income and expenses for 2017: Rental income received ($700 x 12) $8,400 Mortgage interest 6,800 Real estate taxes 3,710 Maintenance expense 660 Homeowner's insurance 2,670 Repair expense 870 The Jensons actively participate in the management of the rent house. 3. Jim, Carol, John, and Mary had minimum essential coverage (MEC) all year through Jim's employer. DOCUMENTS Form W-2 (Read Only) Employees tectly ube 123-77-7777 finger er en member 65-6677888 Employers, MOZPcode Jan Apparel Co. 5898 Parkway Avenue Red Cove, NH 12345 other GMIN 15-ce or you an hearia end you to be cota 1 Wages.ip car cancer 2 Federal non ter with 90,000.00 32,000.00 3 Songs 100,000.00 6,200.00 5 Modern Wand & Medicata witheid 100,000.00 1.450.00 7 Bacinority Aine Camera 10 bronauta NUTZ ESSEN Hondar Employees and and Jim Jenson 15 Brooktree Road Red Cove, NH 12345 13a Senro 13 BOK D 10,000 126 The Oths 12e 1 * Encloe's ZIP de 15 de Employer 16 Song, 19 Sete com 18 le code hennes Wage and Tax Statement Copy C-Por EMPLOYEES RECORDS W-2 Wage and Tax Year 5 Department of De Trety-1st Reverse Sale Boles. e. file FASTI V I elected to defer $10,000 of my salary into my employer- sponsored 40(k) plan during year 5. Form W-2G (Read Only) D COARECTED checked PORN, s. ctyor town, PANDA Brain.care, and Generis 185.000 Sartow Casino 8,000 05/05years Year 5 1156 Board Avenue Red Covn, NH 12346 * Type e Form W-26 Poker Toumament Tors Certain Sarnow 500 Gambling Tintor dag* Ceat Winnings FRYERED PATERS phone number RCT 88-8991158 (800) 555-5555 WWW. The most ac 123-77-7777 words W'Same 11 FLD Sex D. bole Sri Inom Jim Jenson SS card NH driver license Rew Pored to laitum, Conca peralyor 15 Brookte Road or may 688-99-1158 be on you Charter pre rol, my, wre Pernode thia cena be And the wanith Red Cove, NH 12345 noben ported 17 La la Navar Copy . For WordPress Under diesel period the tota la terra dos and poween hele mhac eatmaesias amay means psratape Sigh Date Fom W-26 Department at they were I have support for $10,000 in gambling losses during year 5 and another $1250 of gambling losses that are not documented Form 1098 - Red Cove (Read Only) CORRECTED (if checked RECENT SLIDERS AWT, srostadress, city or loyida to Trener Out Piger nyerte Che No. 15-O mis based on the latest Weston Bank Mortgage und on a worth 394 Cardardt Lane apayyan | Year 5 tydens Interest Red Cove, NH 12345 the entirely Statement ir by the per baly byl Form 1098 TECIMENTOS PAYO curity 1 Wariggerere received from pubwa 55-5715555 Copy B 123-77-7777 $ 16,000 For Payer/Borrower PAYER VOORROWERS 2 Popul on purchase of principal residence The stationen Jim and Carol Jenson 22 Mars nandatang $ had been for you Straatadrese neketing po) a Raundi vargaidares Real 15 Brooktree Road Lane that Chy or town, suatuor province country, and ZIPstoran postcode de ellas Be you Rod Cove, NH 12345 Principal balance at 12/31/year 5: $375,000 Agranumber ses intona) brator 5 Pep you dar Real estate taxes paid: $4,000 ninyo Forn 1098 keep for your records) www.irs.gov/farm1098 Dewoners of the Treasury - Insemnal Revenue Service This is for our primary residence. Form 1098 - Springfield Lakes (Read Only) Copy CORRECTED (f checked ) REOPENSLANDS, they or low, state or phone Chon la kin H OVO No. 1645-0001 entry ZP or foreign land telephone number ay not use by pau. Lintbordan Weston Bank and we ribe Mortgage 394 Cardhardt Lane se prema plan. Year 5 Interest . Red Cove, NH 12345 Meestest ad by Statement Aypal by jouw rendy and person Form 1098 PRECIPIENT'Somierine. PAVERS IN 1 Mortgage interesireved from payer borrow 55-5715555 123-77-7777 $ 7,000 For Payer/Borrower PAYER SBORROWERS AT 2 Piespaiden purchase odprteciparecidence Derretime ..and Donate Jim and Carol Jenson $ lurred to the Here are you? Street dancing apt.no) 3 Helund of overpad terus Esgende ma | merce pendys the 15 Brooktree Road $ Sampon Ciny arten, in or province country and ZP or forsign postal code 4 that ofte is you Red Cove, NH 12345 $ Account numbwap instruction horfor these pause you S throunde Real estate taxes paid: $2,500 on your art Form 1098 (keep for your records) www.lrs.gov/form1098 Degment of the Treewwy - krema Avenue Service This Form 1098 is for our second home in Springfield Lakes, NH. Car Sale Bill of Sale R. Smith Purchaser (signature) J. Jenson Seller (signature) We hereby agree that the vehicle was sold on June 20. year 5, by the Selter, as is, to the Purchaser for the amount below Make MaComba Model: MVCD19X Year. Year 2 Title number: 589996643 Vehicle identification number: 796-9663369 Sales price: $12,000 $ purchased this car on May 5, year 2 for $19,000. There was no business use for this cor. Consolidated 1099 B, Puge 1 Year 5 Consolidated Forms 1099 5 Payer Sminton Bank Brokerage Division 2209 Second Avenue Red Cove, NH 12345 Etient Jim and Carol Jenson 15 Brooktree Road Red Cove, NH 12345 Account Number: NH978-98700 Amount $56.00 1099 DIV Dividends and Distributions IRS Bar 1a Total Ordinary Dividends Ib. Qualified Dividends 22. Total Capital Gain Distributions 21. Unrecaptured Section 1250 Gain 20. Section 1202 Gain 20. Collectibles (289) Gain 3. Nondividend Distributions 4. Federal income Tax Withheld 5. Investment Expenses 6. Foreign Tax Pald a Cash Liquidation Distributions 9. Noncash Liquidation Distributions 10. Exempt interest Dividends 11. Specified Private Activity Bond Interest Dividends 1099 8 Proceeds from Broker and Barter Exchange Transactions - Summary IRS Ror Id. Total Proceeds le Total Cost of Other Basis 10 Adjustments 4. Federal income Tax Withheld 1099-INT Interest Income Amour MS Box $244001. Interest Income $244.001 3. Int. on U.S. Savings Bonds 4. Federal Income Tax Withheld 5. Inwestment Expenses 6. Foreign Tax Paid 7. Foreign country or U.S. Possession 8. Tax Exempt interest $0.00 9. Specified Private Activity Bond Int. 10. Market Discount $0.00 11. Bond Premium 12 Tax Exempt Bond CUSIP No S000 Amount $43,500.00 $29,000.00 $0.00 $0.00 Page 1 Aster Combox la) Cost or Other Consolidated 1099-9. Page 2 , Sminton Bank Tax Year 5 Jim and Carol Jenson Account Number: NH978-98700 1009B Proceeds from Broker and Barter Exchange Transactions Short-term Gains/Losses - Report on Form 8949, Part I with Box A checked Box 2: Type of Gains/Loss - Short-Term Box 3: Basis reported to the IRS Box 5: Box not checked (covered security) The 1099-3 data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the IRS, but may be helpful to complete your return Description and CUSIP Federal Date Sold or Quantity Date Acquired Cost or Other Income Tax Sold Disposed ( Proceeds Basis Adjustments (Box 1b) Withheld Aster Corporation common stock (Box 1c) (Baxle) Box id) Box 19) (@ox 4) CUSIP: 997654321 1,000 02/01/year 5 02/01/year 5 09/15/year 5 $16,600,00 $11,000.00 $0.00 50.00 Totals (8949, Part with Box A Checked $16,600,00 SI1,000.00 $0.00 $0.00 Page 2 Conclidated 1099-8. Page 3 Sminton Bank Tax Year 5 Jim and Carol Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Barter Exchange Transactions Long-term Gains/Losses - Report on Form 8949, Part with Box D checked Box 2 Type of Gains/Loss - Long-Term Box 3 Basis reported to the IRS Box 5: Box not checked (covered security The 1099 8 data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the FRS, but may be helpful to complete your return. Federal Date Sold or Description and CUNIP Quantity Date Acquired Disposed Proceeds Basis Witrheid Box 1) Sold (Box 16 ) Box 1c) ( (Box ld (Boxle) ( Box 10) (Box 4 Tel Corgaration common stock, CUSIP: 456321789 Sco 02/06/year 204/15 years $27.00000 $18,000.00 80.00 50.00 Totals (8949, Part Il with Box D Checked) $27,000.00 $18,000.00 $0.00 SO.DO Page 3 Adusmenes Income Tax Document Review Simulation - Jim and Carol Jenson NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, calculate the following amounts which would be reported on their 2017 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write $0. 1. Wages, salaries, tips, etc. 2. Taxable interest 3. Taxable dividends 4. Business income or (deductible loss) 5. Capital gain or (deductible loss) 6. Rental real estate income or (deductible loss) 7. Taxable other income 8. Deductible part of self-employment tax 9. Schedule A home mortgage interest deduction 10. Schedule A tax deduction 11. Schedule A miscellaneous deduction 12. Taxable income Jim and Carol Jenson, ages 48 and 47, respectively, are married and file a joint tax return. Jim is a CPA employed at Jan Apparel Company and Carol is a self- employed realtor. They have two dependent children in high school: John, age 17, and Mary, age 18. They have provided documentation for their year 5 (assume 2017) income and expenses --- see below. Assume that their 2017 standard deduction is $12,700 and the applicable personal/dependency exemption amount is $4,050 per qualifying individual. Jim and Carol have come to you for help in calculating the different components of taxable income for the year 2017. They have provided you with documents to 1 substantiate their income and expenses --- see below. You also have obtained the following information from interviewing them: INTERVIEW NOTES 1. Carol has documentation (not included below) for 2017 to prove the following income and expenses from her self-employment business as a realtor: Commissions received $49,100 Advertising expenses 15,300 Office expenses 3,810 Business gifts to 50 clients ($100 gift card to each) 5,000 Business computer purchased and put into service 12/1/17 2,400 They would like to take the maximum deduction for their expenses. 2. The Jenson's purchased a rent house on 1/2/17 for $150,000 ($100,000 allocated to the structure and $50,000 allocated to the land). They immediately rented it and have documentation (not included below) for the following income and expenses for 2017: Rental income received ($700 x 12) $8,400 Mortgage interest 6,800 Real estate taxes 3,710 Maintenance expense 660 Homeowner's insurance 2,670 Repair expense 870 The Jensons actively participate in the management of the rent house. 3. Jim, Carol, John, and Mary had minimum essential coverage (MEC) all year through Jim's employer. DOCUMENTS Form W-2 (Read Only) Employees tectly ube 123-77-7777 finger er en member 65-6677888 Employers, MOZPcode Jan Apparel Co. 5898 Parkway Avenue Red Cove, NH 12345 other GMIN 15-ce or you an hearia end you to be cota 1 Wages.ip car cancer 2 Federal non ter with 90,000.00 32,000.00 3 Songs 100,000.00 6,200.00 5 Modern Wand & Medicata witheid 100,000.00 1.450.00 7 Bacinority Aine Camera 10 bronauta NUTZ ESSEN Hondar Employees and and Jim Jenson 15 Brooktree Road Red Cove, NH 12345 13a Senro 13 BOK D 10,000 126 The Oths 12e 1 * Encloe's ZIP de 15 de Employer 16 Song, 19 Sete com 18 le code hennes Wage and Tax Statement Copy C-Por EMPLOYEES RECORDS W-2 Wage and Tax Year 5 Department of De Trety-1st Reverse Sale Boles. e. file FASTI V I elected to defer $10,000 of my salary into my employer- sponsored 40(k) plan during year 5. Form W-2G (Read Only) D COARECTED checked PORN, s. ctyor town, PANDA Brain.care, and Generis 185.000 Sartow Casino 8,000 05/05years Year 5 1156 Board Avenue Red Covn, NH 12346 * Type e Form W-26 Poker Toumament Tors Certain Sarnow 500 Gambling Tintor dag* Ceat Winnings FRYERED PATERS phone number RCT 88-8991158 (800) 555-5555 WWW. The most ac 123-77-7777 words W'Same 11 FLD Sex D. bole Sri Inom Jim Jenson SS card NH driver license Rew Pored to laitum, Conca peralyor 15 Brookte Road or may 688-99-1158 be on you Charter pre rol, my, wre Pernode thia cena be And the wanith Red Cove, NH 12345 noben ported 17 La la Navar Copy . For WordPress Under diesel period the tota la terra dos and poween hele mhac eatmaesias amay means psratape Sigh Date Fom W-26 Department at they were I have support for $10,000 in gambling losses during year 5 and another $1250 of gambling losses that are not documented Form 1098 - Red Cove (Read Only) CORRECTED (if checked RECENT SLIDERS AWT, srostadress, city or loyida to Trener Out Piger nyerte Che No. 15-O mis based on the latest Weston Bank Mortgage und on a worth 394 Cardardt Lane apayyan | Year 5 tydens Interest Red Cove, NH 12345 the entirely Statement ir by the per baly byl Form 1098 TECIMENTOS PAYO curity 1 Wariggerere received from pubwa 55-5715555 Copy B 123-77-7777 $ 16,000 For Payer/Borrower PAYER VOORROWERS 2 Popul on purchase of principal residence The stationen Jim and Carol Jenson 22 Mars nandatang $ had been for you Straatadrese neketing po) a Raundi vargaidares Real 15 Brooktree Road Lane that Chy or town, suatuor province country, and ZIPstoran postcode de ellas Be you Rod Cove, NH 12345 Principal balance at 12/31/year 5: $375,000 Agranumber ses intona) brator 5 Pep you dar Real estate taxes paid: $4,000 ninyo Forn 1098 keep for your records) www.irs.gov/farm1098 Dewoners of the Treasury - Insemnal Revenue Service This is for our primary residence. Form 1098 - Springfield Lakes (Read Only) Copy CORRECTED (f checked ) REOPENSLANDS, they or low, state or phone Chon la kin H OVO No. 1645-0001 entry ZP or foreign land telephone number ay not use by pau. Lintbordan Weston Bank and we ribe Mortgage 394 Cardhardt Lane se prema plan. Year 5 Interest . Red Cove, NH 12345 Meestest ad by Statement Aypal by jouw rendy and person Form 1098 PRECIPIENT'Somierine. PAVERS IN 1 Mortgage interesireved from payer borrow 55-5715555 123-77-7777 $ 7,000 For Payer/Borrower PAYER SBORROWERS AT 2 Piespaiden purchase odprteciparecidence Derretime ..and Donate Jim and Carol Jenson $ lurred to the Here are you? Street dancing apt.no) 3 Helund of overpad terus Esgende ma | merce pendys the 15 Brooktree Road $ Sampon Ciny arten, in or province country and ZP or forsign postal code 4 that ofte is you Red Cove, NH 12345 $ Account numbwap instruction horfor these pause you S throunde Real estate taxes paid: $2,500 on your art Form 1098 (keep for your records) www.lrs.gov/form1098 Degment of the Treewwy - krema Avenue Service This Form 1098 is for our second home in Springfield Lakes, NH. Car Sale Bill of Sale R. Smith Purchaser (signature) J. Jenson Seller (signature) We hereby agree that the vehicle was sold on June 20. year 5, by the Selter, as is, to the Purchaser for the amount below Make MaComba Model: MVCD19X Year. Year 2 Title number: 589996643 Vehicle identification number: 796-9663369 Sales price: $12,000 $ purchased this car on May 5, year 2 for $19,000. There was no business use for this cor. Consolidated 1099 B, Puge 1 Year 5 Consolidated Forms 1099 5 Payer Sminton Bank Brokerage Division 2209 Second Avenue Red Cove, NH 12345 Etient Jim and Carol Jenson 15 Brooktree Road Red Cove, NH 12345 Account Number: NH978-98700 Amount $56.00 1099 DIV Dividends and Distributions IRS Bar 1a Total Ordinary Dividends Ib. Qualified Dividends 22. Total Capital Gain Distributions 21. Unrecaptured Section 1250 Gain 20. Section 1202 Gain 20. Collectibles (289) Gain 3. Nondividend Distributions 4. Federal income Tax Withheld 5. Investment Expenses 6. Foreign Tax Pald a Cash Liquidation Distributions 9. Noncash Liquidation Distributions 10. Exempt interest Dividends 11. Specified Private Activity Bond Interest Dividends 1099 8 Proceeds from Broker and Barter Exchange Transactions - Summary IRS Ror Id. Total Proceeds le Total Cost of Other Basis 10 Adjustments 4. Federal income Tax Withheld 1099-INT Interest Income Amour MS Box $244001. Interest Income $244.001 3. Int. on U.S. Savings Bonds 4. Federal Income Tax Withheld 5. Inwestment Expenses 6. Foreign Tax Paid 7. Foreign country or U.S. Possession 8. Tax Exempt interest $0.00 9. Specified Private Activity Bond Int. 10. Market Discount $0.00 11. Bond Premium 12 Tax Exempt Bond CUSIP No S000 Amount $43,500.00 $29,000.00 $0.00 $0.00 Page 1 Aster Combox la) Cost or Other Consolidated 1099-9. Page 2 , Sminton Bank Tax Year 5 Jim and Carol Jenson Account Number: NH978-98700 1009B Proceeds from Broker and Barter Exchange Transactions Short-term Gains/Losses - Report on Form 8949, Part I with Box A checked Box 2: Type of Gains/Loss - Short-Term Box 3: Basis reported to the IRS Box 5: Box not checked (covered security) The 1099-3 data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the IRS, but may be helpful to complete your return Description and CUSIP Federal Date Sold or Quantity Date Acquired Cost or Other Income Tax Sold Disposed ( Proceeds Basis Adjustments (Box 1b) Withheld Aster Corporation common stock (Box 1c) (Baxle) Box id) Box 19) (@ox 4) CUSIP: 997654321 1,000 02/01/year 5 02/01/year 5 09/15/year 5 $16,600,00 $11,000.00 $0.00 50.00 Totals (8949, Part with Box A Checked $16,600,00 SI1,000.00 $0.00 $0.00 Page 2 Conclidated 1099-8. Page 3 Sminton Bank Tax Year 5 Jim and Carol Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Barter Exchange Transactions Long-term Gains/Losses - Report on Form 8949, Part with Box D checked Box 2 Type of Gains/Loss - Long-Term Box 3 Basis reported to the IRS Box 5: Box not checked (covered security The 1099 8 data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the FRS, but may be helpful to complete your return. Federal Date Sold or Description and CUNIP Quantity Date Acquired Disposed Proceeds Basis Witrheid Box 1) Sold (Box 16 ) Box 1c) ( (Box ld (Boxle) ( Box 10) (Box 4 Tel Corgaration common stock, CUSIP: 456321789 Sco 02/06/year 204/15 years $27.00000 $18,000.00 80.00 50.00 Totals (8949, Part Il with Box D Checked) $27,000.00 $18,000.00 $0.00 SO.DO Page 3 Adusmenes Income Tax