Obtain the supporting information from the option you have chosen to complete for your Portfolio Project. You will also use the Schedule E template included under that same option.

ACT405 Portfolio Project Case 1

Comprehensive Tax Problem Option 1

Taxpayer Information

Name: John Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 5/5/1960

Filing Status: Married

SSN: 434-20-2020

Occupation: Engineer

Name: Debra Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 7/7/1962

Filing Status: Married

SSN: 411-21-4568

Occupation: Teacher

INCOME INFORMATION:

Wages and Compensation

The following information is taken from John Washingtons 2017 Form W-2 Wage and Tax Statement:

Box 1 Wages, tips, and other compensation	80,000
Box 2 Federal Withholding	12,500
Box 17 State Income Tax Withholding	2,000

The following information is taken from Debra Washingtons 2017 Form W-2 Wage and Tax Statement:

Box 1 Wages, tips, and other compensation	42,000
Box 2 Federal Withholding	3,500
Box 17 State Income Tax Withholding	750

Interest and Dividends

John had interest income from a savings account from Everest Bank of $500.00

Debra had dividend income of $550 from Blue Co. stock.

Capital Gains

John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000

Rental Real Estate

The couple owns a rent house which he purchased on July 1, 2014. The income and expenses of the rental real estate unit are as follows:

Rental income $12,000

Property taxes $1,500

Depreciation $1,000

Repairs and Maintenance $750

Insurance $2,000

Other Transactions in 2017

1. Debra had educator expenses in 2017 of $450.00

2. John had gambling winnings of $1,000.

3. John was the beneficiary of his mothers life insurance policy.

His mother died in 2017 and he received $50,000 under this policy.

4. Debra paid $700 in student loan interest.

TEMPLET:

SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99)

Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) Attach to Form 1040, 1040NR, or Form 1041. Information about Schedule E and its separate instructions is at www.irs.gov/schedulee.

OMB No. 1545-0074

2016 Attachment Sequence No. 13

Name(s) shown on return

Your social security number

Part I

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 2016 that would require you to file Form(s) 1099? (see instructions)

Yes

No

B If Yes, did you or will you file required Forms 1099?

Yes

No

1a

Physical address of each property (street, city, state, ZIP code)

A

B

C

1b

Type of Property (from list below)

2 For each rental real estate property listed above, report the number of fair rental and

Fair Rental Days

Personal Use Days

QJV

A

only if you meet the requirements to file as a qualified joint venture. See instructions.

A

B

B

C

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

B

C

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) . . . . . . .

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

(

)

(

)

(

)

23a Total of all amounts reported on line 3 for all rental properties . . . . b Total of all amounts reported on line 4 for all royalty properties . . . . c Total of all amounts reported 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 . . . . . .

23a

23b

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) 2016