On the 1040 form how do you calculate Ordinary dividends? Qualified dividends? Gain / loss? Rental estate, royalties? There are other boxes that I am confused on how to solve, but for now I need to figure out those.

12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Comprehensive Problem 1 Part 1: Taxpayer information, Form 1040, Schedule A, and Schedule B Noah and Joan Arc's Tax Return Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071. Noah's Social Security number is 434113311 Joan's is 45687 5432. Both are in their mid30s and enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city. 1. The Arcs have two children, a son named Billie Bob (Social Security number 598012345), who is 7 years old, and a daughter named Mary Sue (Social Security number 554332411), who is 4 years old. The Arcs paid $3,200 to the Roundup Day Care Center to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after school. 2. For the current year, Joan's W2 from the city fire department is located below. Noah made estimated federal income tax payments of $12,000 and estimated state income tax payments of $1,020 during the current year. a Employee's social security number 456875432 OMB No. 15450008 b Employer identification number (EIN) e ~ file Safe, accurate, IRS FAST! Use Visit the IRS website at www.irs.gov/efile 1 Wages, tips, other compensation 334382966 2 Federal income tax 27,600.00 withheld 5,050.00 c Employer's name, address, and ZIP code 3 Social security wages Santee Fire Department 4 Social security tax withheld 27,600.00 123 Main Street 1,711.20 5 Medicare wages and tips Santee, CA 92071 6 Medicare tax withheld 27,600.00 400.20 7 Social security tips d Control number e Employee's first name and initial 8 Allocated tips 9 Last 10 Dependent care benefits Suff. 11 Nonqualified plans 12a See instructions for box 12 name C o d e 13 Statutory Joan Arc Retirement Thirdparty sick 12b employee plan pay C 4342 Josie Jo o Santee, CA 92071 d e 14 Other 12c C o d e 12d C o d e f Employee's address and ZIP code 15 State Employer's state ID number CA 112687021 16 State wages, tips, 17 State income etc. tax 27,600.00 1,240.00 18 Local wages, tips, etc. 19 Local income tax 20 Locality name http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 1/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning W2 Wage and Tax Statement 2016 Form Department of the TreasuryInternal Revenue Service Copy BTo Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 3. Noah's pet store is located at 18542 Mission Road, Santee, CA 92071. The name of the store is "The Arc," and its taxpayer ID number is 95 9876556. The beginning inventories and ending inventories are both $10,000. The revenue and expenses for the year are as follows: Sales revenue $ 144,300 Expenses: Cost of sales $61,900 Insurance 780 Accounting fees Wages 1,800 25,100 Payroll taxes 2,250 Business meals (total) 400 Utilities 2,650 Rental expense 7,600 4. Noah and Joan paid the following amounts during the year (all by check): Political contributions $250 Church donations (for which a written acknowledgment was received) 2,625 Real estate taxes on their home 1,350 Medical Fees 700 Mortgage interest for purchase of home See Form 1098 Tax return preparation fees 350 Credit card interest 220 Automobile insurance premiums 600 Uniforms for Joan 125 5. Noah likes to invest in the stock market. His Form 1099B showed the following information for Noah's stock sales: Stock Date Acquired Date Sold Sales Price Cost Basis Blue Co. 02/11/06 08/15/16 $4,500 $2,400 Yellow Co. 01/31/16 06/05/16 6,000 5,300 Red Co. 10/02/07 10/07/16 12,200 1,600 The expenses of sale are included in the cost basis. Noah has a longterm capital loss carryover from last year of $2,350. 6. During the year, Noah and Joan received the following qualifying dividends: Exxon $302 Texas Utilities CocaCola 220 See 1099DIV All stocks, bonds, and savings accounts were purchased or established with community property. 7. Noah and Joan own rental property (a single family residence) located at 6431 Gary Ct., San Diego, CA 92115. The revenue and expenses for the year are as follows: Rent income Insurance See 1099MISC $575 Interest expense 6,870 Property taxes 1,000 Miscellaneous expenses Depreciation (the house was acquired in 1992) 600 3,000 8. All members of the Arc household were covered for the entire year under health care insurance through Joan's employer. 9. The Arcs paid California general sales tax of $976 during the year. Required: Although Noah and Joan do not believe their tax return will be unduly complicated, they do realize their limitations and come to you for assistance. You are to prepare their federal income tax return in good form, signing the return as the preparer. You are not required to complete a California state income tax return. Noah and Joan have completed a tax organizer and have also given you several IRS forms (see 1099DIV, 1099 MISC and 1098) that they were not sure what to do with. Make realistic assumptions about any missing data (addresses, etc.) that you may need. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 2/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning The following forms and schedules are required: Form 1040 Schedule E (Only page 1 is required) Schedule A Schedule SE (Only page 1 is required) Schedule B Form 2441 (Only page 1 is required) Schedule C Form 8949 Schedule D Qualified Dividends and Capital Gain Tax Worksheet Click here to access the tax table to use for this problem. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required, round your answers to the nearest dollar. However, on Schedule SE, use the rounded amounts in subsequent computations. Department of the TreasuryInternal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2016 OMB No. 15450074 IRS use only Form For the year Jan. 1-Dec. 31, 2016, or other tax , 2016, , year beginning ending 20 Your first name and initial Last name Noah Arc If a joint return, spouse's first Last name name and initial Arc See separate instructions. Your social security number 434113311 Spouse's social security number 456875432 Joan Home address (number and street). If you have a P.O. Apt. no. Make sure the SSN(s) above and on line 6c are correct. box, see instructions. 4342 Josie Jo City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign Santee, CA 92071 Check here if you, or your spouse if filing jointly, want $3 to go to this Foreign country name Foreign fund. Checking a box below will not change your tax or refund. Foreign province/state/country postal code Filing status You Spouse Married filing jointly (even if only one had income) 6a Yes Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . . . . . . . . . . . . . . . . . . . Exemptions b Yes Boxes checked on 6a 2 2 0 0 4 27,6 1,16 } and 6b Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No. of children on 6c who: c Dependents: (2) (3) Dependent's Dependent's social security relationship (1) First name If more than four dependents, see Last number to you lived with you (4) If child under age 17 qualifying for child tax credit (see instructions) instructions) Billie Bob Arc 598012345 Son Mary Sue Arc 554332411 Daughter Dependents on 6c not entered above Add numbers on lines d Total number of exemptions claimed . . . . . . . . . . . . . . Income Attach Form(s) W2 here. Also attach Forms W2G and 1099R if tax was withheld. due to divorce or separation (see name instructions and check here did not live with you 7 8a Wages, salaries, tips, etc. Attach Form(s) W2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Taxexempt interest. Do not include on line 8a . . . . . . . . . 9a above 8a 8b Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9a http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 3/9 12/7/2017 If you did not get a W2, see CengageNOWv2 | Online teaching and learning resource from Cengage Learning b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . instructions. 10 11 12 13 0 9b Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 12 42,0 13 850 2,90 72,8 36 2,96 37 69,8 Business income or (loss). Attach Schedule C or CEZ . . . . . . . . . . . . . . . . . . . . Capital gain or (loss). Attach Schedule D if required. If not required, check here 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a IRA distributions . . . . . . 15a b 16a Pensions and annuities . 16a b 17 18 19 Taxable 15b amount . . Taxable 16b amount . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach 17 Schedule E Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Social security benefits 20a Taxable b 14 Other income. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 22 Combine the amounts in the far right column for lines 7 through 21. This is your 19 20b amount . . 21 18 21 total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 23 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Certain business expenses of reservists, performing artists, 23 and feebasis government officials. Attach Form 2106 or 2106 EZ . 24 25 Health savings account deduction. Attach Form 8889 . . . . 25 26 Moving expenses. Attach Form 3903 . . . . . . . . . . . . . . . . 26 27 Deductible part of selfemployment tax. Attach Schedule SE 27 28 Selfemployed SEP, SIMPLE, and qualified plans . . . . . . . . 28 Adjusted 29 Selfemployed health insurance deduction . . . . . . . . . . . . . 29 Gross 30 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . 30 Income 31a Alimony paid b Recipient's SSN 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 37 31a 32 36 2,96 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2016) Form 1040 (2016) Noah & Joan Arc 434113311 Page 2 38 Tax and Credits Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . You were born before January 2, 1952, 39a Check if: Blind. 38 69,8 Total boxes { Spouse was born before January 2, 1952, } checked Blind. 39a http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 4/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning b If your spouse itemizes on a separate return or you were a dualstatus alien, check here 39b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 41 Itemized deductions (from Schedule A) or your standard deduction (see left margin) Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 19,9 41 49,8 16,0 43 33,8 44 4,15 4,15 600 3,55 5,93 9,48 42 Exemptions. If line 38 is $155,650 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions . . . . . . . . . . . . . . . . . . . . 42 . . . . . . . . . . . . . . . . . . . . . . . 43 44 Standard Deduction for People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. 45 46 47 All others: Single or Married filing separately, $6,300 48 Married filing jointly or Qualifying widow(er), 49 $12,600 Head of household, $9,300 50 51 52 53 54 55 56 57 58 59 60a Other Taxes b 61 62 63 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter 0 Tax (see instructions). Check if any from: a Form(s) 8814 b Form 4972 c Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . 45 . . . . . . . . Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . 46 . . . . . . . Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . 47 48 Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . . . Retirement savings contributions credit. Attach Form 8880 . . . . Child tax credit. Attach Schedule 8812, if required . . . . . . . . . . Residential energy credits. Attach Form 5695 . . . . . . . . . . . . . . Other credits from Form: a 3800 b 8801 c 49 600 0 50 51 52 53 54 Add lines 48 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . Subtract line 55 from line 47. If line 55 is more than line 47, enter 0 . . . . . . . . . . . . 56 Selfemployment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unreported social security and Medicare tax from Form: a 4137 b 8919 . . . . . . . Additional tax on IRAs, other qualified retirement plans, etc. Attach Form Household employment taxes from Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Firsttime homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . . . . . Fullyear Taxes from: a Form 8959 b Form 8960 c Instructions enter code(s) _ _ _ _ _ _ _ Add lines 56 through 62. This is your total tax . . . . . . . . . . . . . . . . . . . . Federal income tax withheld from Forms W2 and 1099 . . . Payments 64 If you have a qualifying child, attach 65 2016 estimated tax payments and amount applied from . . . 58 60a 60b 61 coverage . . . . . . . . 57 59 5329 if required Health care: individual responsibility (see instructions) 55 62 63 64 5,05 65 12,0 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 5/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Schedule EIC. 2015 return 66a Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . . . b Nontaxable combat pay election . . . . 67 68 69 70 71 72 73 74 Refund 75 66a 66b Additional child tax credit. Attach Schedule 8812 . . . . . . . . . . American opportunity credit from Form 8863, line 8 . . . . . . . Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . Amount paid with request for extension to file . . . . . . . . . . . . . Excess social security and tier 1 RRTA tax withheld . . . . . . . . Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . Credits from Form: a 2439 b Reserved c 8885 d 67 68 69 70 71 72 73 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . . . 74 17,0 7,56 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here Direct deposit? See instructions. Amount You Owe b Routing number c Type: 0 76a Checking Savings d Account number 77 Amount of line 75 you want applied to your 2017 estimated tax 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions . . . . . 77 0 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Estimated tax penalty (see instructions) . . . . . . . . . . . . . . . . . 79 Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. Third Party No Designee Designee's Phone name no. Personal identification number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than Sign Here taxpayer) is based on all information of which preparer has any knowledge. Date Your Your signature Joint return? See occupation Noah Arc Pet Store Owner instructions. Keep a copy for your records. Daytime phone number Spouse's signature. If a joint return, Date Spouse's both must sign. occupation Joan Arc Firefighter If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Print/Type preparer's name Preparer's signature Date Check if selfemployed PTIN Paid Preparer Use Only Firm's name Firm's EIN Firm's address Phone no. www.irs.gov/form1040 SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040 Form 1040 (2016) Itemized Deductions Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. Attach to Form 1040. OMB No. 1545 0074 2016 Attachment Sequence No. 07 Your social http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 6/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Noah and Joan Arc security number 434113311 Caution. Do not include expenses reimbursed or paid by others. Medical and Dental Expenses 1 Medical and dental expenses (see instructions) . . . . . . . . . . . 2 Enter amount from Form 1040, line 38 1 0 2 0 0 3 Multiply line 2 by 10% (0.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter 0 . . . . . . . . . . . . . . . . 4 0 5 State and local (check only one box): 5 2,26 6 Real estate taxes (see instructions) . . . . . . . . . . . . . . . . . . . . . 6 1,35 7 Personal property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 a Income taxes, or b General Sales Taxes Taxes You Paid } . . . . . . . . . . . . . . . . . 8 Other taxes. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 3,61 15 11,1 19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2,70 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) 20 9 Add lines 5 through 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Home mortgage interest and points reported to you on Form 1098 Interest You Paid 9 10 11,1 11 Home mortgage interest not reported to you on Form 1098. If 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 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . limited (see 13 Mortgage insurance premiums (see instructions) . . . . . . . . . . . . . 13 instructions). 14 Investment interest. Attach Form 4952 if required. (See instructions.) 14 15 Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Gifts by cash or check. If you made any gift of $250 or more, Gifts to Charity If you made a gift and got a benefit for it, see instructions. 16 2,70 see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Other than by cash or check. If any gift of $250 or more, see instructions. You 17 must attach Form 8283 if over $500 . . . . . . 18 Carryover from prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Casualty and Theft Losses 21 Unreimbursed employee expensesjob travel, union dues, job education, etc. Attach Form 2106 or 2106EZ if required. (See instructions.) Employee Business Expenses 21 3,61 22 350 22 Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Job Expenses and Certain Miscellaneous Deductions 23 Other expensesinvestment, safe deposit box, etc. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 24 Add lines 21 through 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Enter amount from Form 1040, line 38 25 69,8 24 3,96 26 1,39 26 Multiply line 25 by 2% (0.02) . . . . . . . . . . . . . . . . . . . .. . . . . 27 2,56 27 Subtract line 26 from line 24. If line 26 is more than line 24, enter 0 . . . . . . . . . . . . . . Other Miscellaneous Deductions Total Itemized Deductions 28 Otherfrom list in instructions. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 28 29 Is Form 1040, line 38, over $155,650? 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. } . . . . 29 19,9 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 7/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 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 Schedule A (Form 1040) 2016 Interest and Ordinary Dividends SCHEDULE B OMB No. 1545 0074 2016 (Form 1040A or 1040) Department of the Treasury Internal Revenue Service (99) Attach to Form 1040A or 1040. Information about Schedule B and its instructions is at www.irs.gov/scheduleb. Attachment Sequence No. 08 Your social Name(s) shown on return security Noah and Joan Arc number 434113311 Part I 1 List name of payer. If any interest is from a sellerfinanced mortgage Interest and the buyer used the property as a personal residence, see Amount instructions on back and list this interest first. Also, show that buyer's (See instructions on back and the instructions for Form social security number and address 1040A, or Form 1040, line 8a.) Note: If you received a Form 1099INT, 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 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 4 Note: If line 4 is over $1,500, you must complete Part III. Amount 5 List name of payer _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Part II _ _ _ Ordinary Exxon Dividends 220 1,16 302 (See instructions on back and the instructions for Form CocaCola 1040A, or Form 1040, line 9a.) Texas Utilities 640 5 Note: If you received a Form 1099DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 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 Yes No 7a At any time during 2016, did you have a financial interest in or signature authority over a financial account (such as a Foreign bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that Trusts financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions (See to those requirements . . . . . . . . . . . X instructions b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located on back.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 During 2016, 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 . X For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2016 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 8/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Feedback Check My Work The calculation of taxable income begins with gross income. Gross income includes all income, unless the tax law provides for a specific exclusion. Taxable income for individuals generally includes wages, salary, selfemployment earnings, rent, interest, and dividends. The first category of deductions includes the deductions for adjusted gross income. A taxpayer's adjusted gross income is also used to determine limits on certain charitable contributions and contributions to certain individual retirement accounts. 1 more Check My Work uses remaining. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 9/9 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Comprehensive Problem 1 Part 2: Schedule C, Schedule D, Form 8949 and Qualified Dividends and Capital Gains Tax Worksheet Note: If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0". Profit or Loss From Business OMB No. 1545 SCHEDULE C (Form 1040) (Sole Proprietorship) Information about Schedule C and its separate instructions is at 2016 www.irs.gov/schedulec. Attachment Department of the Treasury Internal Revenue Service (99) 0074 Attach to Form 1040, 1040NR, or 1041 partnerships generally must 09 file Form 1065. Name of proprietor Sequence No. Social security number (SSN) Noah Arc 434113311 A Principal business or profession, including product or service (see instructions) B Enter code from instructions Pet Store 453910 C Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.) The Arc 959876556 E Business address (including suite or room no.) 18542 Mission Road City, town or post office, state, and ZIP code Santee, CA 92071 Other (specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ F Accounting method: (1) Cash (2) Accrual (3) G Did you "materially participate" in the operation of this business during 2016? If "No," see instructions for limit on losses H If you started or acquired this business during 2016, check here . . . . . . . . . . . . . . . . . . . . . . I Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) . . . J If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Yes No Yes No Yes Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W2 and the "Statutory employee" box on that form was checked . . . . . . . . . . . . . 1 144 2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 3 144 4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 61,9 5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 82,4 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . .. . 6 7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 82,4 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising . . . . . . . . . . .. . 8 9 Car and truck expenses (see instructions) . . . . . . . . . . . 9 18 Office expense (see instructions) . .. . 18 19 Pension and profitsharing plans . . . . 19 20 Rent or lease (see instructions): . . . . . 10 Commissions and fees . . . .. 10 a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 b Other business property . . . . . . . . . . . 20b 7,60 12 Depletion . . . . . . . . . . . . . 12 13 Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . 13 21 Repairs and maintenance . . . . . . . . . 21 22 Supplies (not included in Part III) . . . 22 23 Taxes and licenses . . . . . . . . . . . . . 23 24 14 Employee benefit programs (other than on line 19) . . . . . . . 14 15 a Mortgage (paid to banks, etc.) . . 16a b Other . . . . . . . . . . . . . . . . 16b 17 24a b Deductible meals and 780 16 Interest: . . . . . . . . . . . . . . . 17 Legal and professional services Travel, meals, and entertainment: . . . a Travel . . . . . . . . . . . . . . . . . . . . 15 Insurance (other than health) . . 2,25 entertainment (see instructions) . . . . 25 Utilities . . . . . . . . . . . . . . . . . . . . . . 26 Wages (less employment credits) . . . . 27a Other expenses (from line 48) . . . . . 1,80 b Reserved for future use . . . . . .. 24b 200 25 2,65 26 25,1 27a 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . . . . . . 28 40,3 29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 42,0 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 1/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified 30 method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: for business: and (b) the part of your home used . Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked 31 } the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity (see instructions). 42,0 All 32a investment If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, } line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. is at risk. 32b If you checked 32b, you must attach Form 6198. Your loss may be limited. Some investment is not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2016 Schedule C (Form 1040) 2016 Noah Arc 434113311 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost Lower of cost or market b Other (attach explanation) c 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . . . . . . 35 10,0 36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 61,9 37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 71,9 41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 10,0 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . . . . . 42 61,9 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month, day, year) / / 44 Of the total number of miles you drove your vehicle during 2016, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other Yes No Yes No 47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No b If "Yes," is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No 45 Was your vehicle available for personal use during offduty hours? . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Do you (or your spouse) have another vehicle available for personal use? . . . . . . . . . . . . . . . . . . . . . . Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 2/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Schedule C (Form 1040) 2016 Capital Gains and Losses OMB No. 1545 SCHEDULE D (Form 1040) Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at 2016 www.irs.gov/scheduled. Attachment Department of the Treasury Internal Revenue Service (99) 0074 Sequence No. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 12 10. Name(s) shown on return Your social security number Noah and Joan Arc 434113311 Part I ShortTerm Capital Gains and LossesAssets Held One Year or Less (g) 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. (h) Gain or Adjustments to gain or (d) (e) loss from Proceeds Cost (or Form(s) (loss) Subtract column (e) from column (d) and combine (sales price) other basis) 8949, Part I, the result with line 2, column (g) column (g) 1a Totals for all shortterm transactions reported on Form 1099B 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 transactions on Form 8949, leave this line blank and go to line 1b . . . . . . . . . . . . . . . . . . . . . . . . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,00 5,30 700 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 Shortterm gain from Form 6252 and shortterm gain or (loss) from Forms 4684, 6781, and 8824 . . 4 5 Net shortterm gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K1 5 6 Shortterm capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover 6 Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ( ) 7 Net shortterm capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . . . . . . 700 7 Part II LongTerm Capital Gains and LossesAssets Held More Than One Year (g) Adjustments See instructions for how to figure the amounts to enter on the lines below. to gain or (d) (e) loss from Proceeds Cost (or Form(s) (sales price) other basis) 8949, Part II, This form may be easier to complete if you round off cents to whole dollars. line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 8a Totals for all longterm transactions reported on Form 1099B 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 transactions on Form 8949, leave this line blank and go to line 8b . . . . . . . . . . . . . . . . . . . . . . . . 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,80 4,00 800 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 3/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 10 Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Gain from Form 4797, Part I longterm gain from Forms 2439 and 6252 and longterm gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Net longterm gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K1 12 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 13 14 Longterm capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 14 2,3 15 1,5 15 Net longterm capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040) 2016 Schedule D (Form 1040) 2016 Noah and Joan Arc 434113311 Page 2 Part III Summary 16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850 16 If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter 0 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 19 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions . . . . . . . . . 0 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 18 19 0 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) } . . . . . . . . . . . . . . . . . . . . . . . ( 21 ) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). No. Complete the rest of Form 1040 or Form 1040NR. Schedule D (Form 1040) 2016 OMB No. 1545 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 4/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 0074 Sales and Other Dispositions of Capital Assets 8949 Form Department of the Treasury Internal Information about Form 8949 and its separate instructions is at 2016 www.irs.gov/form8949. Attachment Revenue Service File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. Name(s) shown on return Sequence No. 12A Social security number or taxpayer identification number Noah and Joan Arc 434113311 Before you check Box A, B, or C below, see whether you received any Form(s) 1099B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part I ShortTerm. Transactions involving capital assets you held 1 year or less are short term. For longterm transactions, see page 2. Note: You may aggregate all shortterm transactions reported on Form(s) 1099B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a you aren't required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your shortterm transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more shortterm transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (A) Shortterm transactions reported on Form(s) 1099B showing basis was reported to the IRS (see Note above) Shortterm transactions reported on Form(s) 1099B showing basis wasn't reported to the IRS (B) Shortterm transactions not reported to you on Form 1099B (C) 1 Adjustment, if any, to gain or loss. If you enter an (a) Description of property (Example: 100 sh. XYZ Co.) Yellow Co. (b) Date acquired (Mo., day, yr.) 01/31/16 (e) (c) Date sold or disposed of (Mo., day, yr.) 06/05/16 amount in column (g), enter (h) Gain or (loss). (d) Cost or other Proceeds basis. See the (sales price) Note below and (see see Column (e) in (f) (g) result with column the separate Code(s) from Amount of (g) instructions instructions adjustment instructions) a code in column (f). See the separate instructions. Subtract column (e) from column (d) and combine the 6,00 5,30 700 6,00 5,30 700 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) . http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 5/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2016) Form 8949 (2016) Attachment Sequence No. 12A Page 2 Social security number or taxpayer identification Name(s) shown on return. Name and SSN or taxpayer identification no. not required if number shown on other side Noah and Joan Arc 434113311 Before you check Box D, E, or F below, see whether you received any Form(s) 1099B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II LongTerm. Transactions involving capital assets you held more than 1 year are long term. For shortterm transactions, see page 1. Note: You may aggregate all longterm transactions reported on Form(s) 1099B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your longterm transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more longterm transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Longterm transactions reported on Form(s) 1099B showing basis was reported to the IRS (see Note above) Longterm transactions reported on Form(s) 1099B showing basis wasn't reported to the IRS (E) Longterm transactions not reported to you on Form 1099B (F) 1 (a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold or disposed (Mo., day, yr.) (d) Proceeds (sales price) (see instructions) (e) Cost or other basis. See the Note below and see Column (e) in the separate instructions Adjustment, if any, to gain (h) or loss. If you enter an Gain or (loss). amount in column (g), enter Subtract column (e) a code in column (f). See the from column (d) separate instructions. and combine the result with column (f) (g) Code(s) from Amount of instructions adjustment (g) Blue Co. 02/11/06 08/15/16 4,50 2,40 2,10 Red Co. 10/02/07 10/07/16 12,2 1,60 10,6 4,00 12,7 2 Totals. Add the amounts in columns (d), (e), (g), and (h) 16,7 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 6/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. Form 8949 (2016) Qualified Dividends and Capital Gain Tax WorksheetLine 44 Keep for Your Records Before you See the earlier instructions for line 44 to see if you can use this worksheet to figure your tax. begin: Before completing this worksheet, complete Form 1040 through line 43. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Form 1040. 1. Enter the amount from Form 1040, line 43. However, if you are filing Form 2555 or 2555EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter the amount from Form 1040, line 9b* . . . . . . . . . . . . . . . . . . 1. 2. 3. Are you filing Schedule D?* Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, Yes. enter 0. No. Enter the amount from Form 1040, line 13. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 3. 4. 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter 0 . . . . . . . . 5. 6. Subtract line 5 from line 4. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 1. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter: $37,650 if single or married filing separately, $75,300 if married filing jointly or qualifying widow(er), } . . .. . . . . . 8. $50,400 if head of household. 9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9. 10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Enter: $415,050 if single, $233,475 if married filing separately, } . . . . . . . . . 15. $466,950 if married filing jointly or qualifying widow(er), $441,000 if head of household. 16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 16. 17. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 17. 18. Subtract line 17 from line 16. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . 18. 19. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 19. 20. Multiply line 19 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. 21. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. 22. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. 23. Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 23. 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the 24. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 7/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning amount on line 7 is $100,000 or more, use the Tax Computation Worksheet . . . . .. . . . . . . . 25. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet . . . . . . . . . . . . . . 26. 27. Tax on all taxable income. Enter the smaller of line 25 or line 26. Also include this amount on Form 1040, line 44. If you are filing Form 2555 or 2555EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27. * If you are filing Form 2555 or 2555EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 1 more Check My Work uses remaining. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 8/8 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Comprehensive Problem 1 Part 3: Schedule E (page 1), Schedule SE (page 1) and Form 2441 (page 1) If required, round your answers to the nearest dollar. If an amount box does not require an entry or the answer is zero, enter "0". If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Note: On Schedule SE, use the rounded amounts in subsequent computations. SCHEDULE E (Form 1040) Supplemental Income and Loss OMB No. 1545 (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) 2016 Attach to Form 1040, 1040NR, or Form 1041. Attachment Department of the Treasury Internal Revenue Service (99) 0074 Information about Schedule E and its separate instructions is at Sequence No. 13 www.irs.gov/schedulee. Name(s) shown on return Your social security number Noah and Joan Arc Part I 434113311 Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C or CEZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. No Yes No A Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) Yes B If "Yes," did you or will you file required Forms 1099? 1a Physical address of each property (street, city, state, ZIP code) A 6431 Gary Court, San Diego, CA 92115 B C Type of 1b Property (from list below) A 1 B 2 Fair For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions. Personal Rental Use Days Days QJV A B C C Type of Property: 1 Single Family Residence 3 Vacation/ShortTerm Rental 5 Land 2 MultiFamily Residence 4 Commercial 7 SelfRental 6 Royalties 8 Other (describe) Income: Properties: A 3 Rents received . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 3 4 Royalties received . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 14,3 6,87 B C Expenses: 5 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Auto and travel (see instructions) . . . . . . . . . . . . . . . . 6 7 Cleaning and maintenance . . . . . . . . . . . . . . . . . . . . . 7 8 Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 8 9 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Legal and other professional fees . . . . . . . . . . . . .. . . . 10 11 Management fees . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 11 12 Mortgage interest paid to banks, etc. (see instructions) . . 12 1,00 13 Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 15 16 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 600 17 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Depreciation expense or depletion . . . . . . . . . . . . . . . . 18 19 Other (list) Miscellaneous 0 19 3,00 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 1/4 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 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 20 11,4 21 2,90 Deductible rental real estate loss after limitation, if any, on Form 8582 (see 22 ( instructions) . . . . . . . . . . . . . . . . . . . . . . . . ) ( 23a Total of all amounts reported on line 3 for all rental properties . . . . . . . . . . . 24 ) ( 23a 14,3 b Total of all amounts reported on line 4 for all royalty properties . . . . . . . . . . . 23b c Total of all amounts reported on line 12 for all properties . . . . . . . . . . . . . . . 23c 0 d Total of all amounts reported on line 18 for all properties . . . . . . . . . . . . . . . . 23d 0 e Total of all amounts reported on line 20 for all properties . . . . . . . . . . . . . . . . 23e 11,4 ) 2,90 Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . . . . . . . . . . . . . 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 ( 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, 0 ) 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 . . . . . . . 2,90 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040) 2016 OMB No. 1545 SelfEmployment Tax SCHEDULE SE 0074 2016 (Form 1040) Department of the Treasury Internal Revenue Information about Schedule SE and its separate instructions is at www.irs.gov/schedulese. Service (99) Attach to Form 1040 or Form 1040NR. Attachment Sequence No. 17 Name of person with selfemployment income (as shown on Form 1040 or Social security number of person with self Form 1040NR) employment income 43411 Noah Arc 3311 Before you begin: To determine if you must file Schedule SE, see the instructions. May I Use Short Schedule SE or Must I Use Long Schedule SE? Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2016? No Yes Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe selfemployment tax on other earnings? No Are you using one of the optional methods to figure your net earnings (see Was the total of your wages and tips subject to social Yes No Did you receive church employee income (see instructions) reported on Form W2 of $108.28 or more? net earnings from selfemployment more than Yes No Did you receive tips subject to social security or Medicare tax that you didn't report to your employer? No Yes No Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? No You may use Short Schedule SE below Yes $118,500? instructions)? security or railroad retirement (tier 1) tax plus your Yes Yes You must use Long Schedule SE on page 2 http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprogress=false 2/4 12/7/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Section AShort Schedule SE. Caution. Read above to see if you can use Short Schedule SE. 1a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K1 (Form 1065), box 14, code A . . . . . . 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments 1b ( included on Schedule F, line 4b, or listed on Schedule K1 (Form 1065), box 20, code Z. ) 2 Net profit or (loss) from Schedule C, line 31 Schedule CEZ, line 3 Schedule K1 (Form 1065), box 14, code A (other than farming) and Schedule K1 (Form 1065B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 42,0 3 42,0 4 38,8 5 5,93 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe selfemployment tax don't file this schedule unless you have an amount on line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Note. If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. 5 Selfemployment tax. If the amount on line 4 is: $118,500 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Form 1040, line 57, or Form 1040NR, line 55 More than $118,500, multiply line 4 by 2.9% (0.029). Then, add $14,694 to the result. Enter the total here and on Form 1040, line 57, or Form 1040NR, line 55 . . . . . . . . . . . . . . . . . 6 Deduction for onehalf of selfemployment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Form 1040, line 27, or Form 1040NR, line 27 6 2,96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11358Z Schedule SE (Form 1040) 2016 OMB No. 15450074 Form 2441 2016 Child and Dependent Care Expenses Department of the Treasury Internal Attachment Attach to Form 1040, Form 1040A, or Form 1040NR. Revenue Service (99) Sequence Information about Form 2441 and its separate instructions is at www.irs.gov/form2441. No. 21 Name(s) shown on return Your social security number Noah and Joan Arc 434113311 Part I Persons or Organizations Who Provided the CareYou must complete this part. (If you have more