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please answer the questions below Gerald and Moira Johnson, are married taxpayers with two children, Michael and Oliver. Oliver lives with the Johnson's and Michael

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Gerald and Moira Johnson, are married taxpayers with two children, Michael and Oliver. Oliver lives with the Johnson's and Michael is Gerald's son from a former marriage. Oliver is 7 years old and Michael is 18. Moira's Mother, Jane Sullivan also lives with Gerald and Moira. She has a small income but for the most part depends on Moira for her food, clothing and shelter. Gerald is employed as a teacher for the local school district. He earned $46,000 last year, 2019, and had $6840 withheld from his wages for Federal taxes. Moira runs her own business, Moira's Horticultural Creations. Information about the revenue and expenses of her business is as follows: Sales $510,460 Inventory at Beginning of year S5500 Purchases during the year S202,300 Ending Inventory at End of year $13,400 Expenses: Advertising 6,700 Wages to other employees 73,000 Rent of business equipment 20,000 Car and Truck expenses 9,650 Insurance 6,500 Mortgage on Building 7,600 Supplies 22,500 Taxes and Licenses 7,488 Meals and Entertainment 2.300 Utilities 12,000 Repairs and maintenance 1,000 Guard Dog 1,100 Professional Magazines 40 Uncollectible Accounts 2.890 Legal Services 1,800 Rent of Building 116,552 The Johnsons sold the stock they owned in Miller Corporation on December 12, 2019. They had originally paid $29,000 for the stock, they received $41,000. They had owned the stock since March of 2018. They also same day that they received 54 They had owned the stock since March of 2018. They also sold some stock on the same day that they had owned for more than one year as follows: GMC Corporation stock - sold 200 shares for a total of $10,300. They had originally paid $10,000 for the stock in 2003. Novara Corporation stock - sold 100 shares for a total of 45,200. They had inherited this stock in 2000. The FMV on the date inherited was 538,150. The Johnsons own two houses. One they live in and one that they rent to another family. The rental income for 2019 is $7.200. The expenses they incurred include Mortgage interest S3600, Taxes $1890, Utilities 8810. Gerald attended college this year. He took a few classes toward an MBA. He paid $4,000 in tuition Gerald received a 1099 INT for the interest he received on some of his investments. He received $3200 from First National Bank, 54700 from Central Kansas Savings and Loan and $200 for Priceway Investments. Gerald also received a 1099 DIV for dividends he received on some of his investments - S4000 from Edward D. Jones Investments, and $1300 from XYZ Investments. The Johnsons have brought you their tax information for you to prepare their return. In addition they have brought you a list with supporting documentation for the following expenses they have incurred. They are not sure if all of these expenditures will be deductible. Home mortgage interest S9100 State income taxes S1821 Medical Expenses S3200 Personal Property Taxes S200 Installation of in-ground pool $10.500 Tax Prep fees $400 Union Dues S600 Cash donations to church 59000 Safe Depot 350 Gerald received a 1099 INT for the interest he received on some of his investments. He received $3200 from First National Bank, S4700 from Central Kansas Savings and Loan and $200 for Priceway Investments. Gerald also received a 1099 DIV for dividends he received on some of his investments - 54000 from Edward D. Jones Investments, and $1300 from XYZ Investments. The Johnsons have brought you their tax information for you to prepare their return. In addition they have brought you a list with supporting documentation for the following expenses they have incurred. They are not sure if all of these expenditures will be deductible. Home mortgage interest S9100 State income taxes S1821 Medical Expenses $3200 Personal Property Taxes S200 Installation of in-ground pool $10,500 Tax Prep fees $400 Union Dues S600 Cash donations to church 59000 Safe Deposit Box S50 - Moira had gambling winnings of S5400. 1. Moira paid 89,600 for health insurance for herself. Answer the following questions regarding the Johnson's tax return for 2019. What is the Gross income for this family? Which forms will need to be submitted to the IRS for this family? What is their filing status? What is the Adjusted Gross Income? How much Self-Employment tax is owed by this small business owner? How much Total Tax is owed by this family? How could this family lower their tax liability? List five questions you would ask this family if you were preparing their tax return for them that would be pertinent to making sure they have lowered their tax liability as much as possible

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