Question
Please complete the 2018 federal income tax return for Carlos and Maria Gomez. If required information is missing, use reasonable assumptions to fill in the
Please complete the 2018 federal income tax return for Carlos and Maria Gomez. If required information is missing, use reasonable assumptions to fill in the gaps.
Carlos and Maria Gomez live in Thibodaux, LA. The Gomezes have two children: Luis (age 14) and Amanda (age 12). Both children qualify as federal income tax dependents of Carlos and Maria. The Gomezes provided the following information:
Carloss social security number is 234-78-4321
Marias social security number is 432-34-5468
Luiss social security number is 589-24-8432
Amandas social security number is 599-74-8733
The Gomezs current mailing address is 1234 Canal Blvd, Thibodaux, LA 70301
Carlos start his own engineering firm called Gomez Professional Engineers (GPE) January 1, 2018. GPE is conducted as a sole proprietorship with Carlos being the sole owner. GPE is located at 1515 Canal Blvd, Thibodaux, LA 70301 (EIN 20-1616167). Maria is a seventh grade English teacher at the local middle school.
The following was reported on Marias Form W-2:
All applicable and appropriate payroll taxes were withheld by the employer.
Carlos reported the following information for GPEs business activities (GPE uses the cash method of accounting):
Employer
Gross Wages
Federal Income Tax Withholding
State Income Tax Withholding
Local Middle School
55,000
8,000
3,750
Revenues: Credit card receipts
Cash receipts Total revenue
Expenses: Advertising
Insurance-professional Office building rent Equipment leases Travel
Meals Entertainment Wages Taxes and licenses Employee health insurance Employee benefit programs
$352,000 648,000 $1,000,000
$5,450 15,750 62,000
6,050 14,200 2,975 4,000 498,725 44,875 42,000 14,500
Utilities Office supplies Legal and professional fees Repairs and maintenance
Total Expenses GPE purchased and placed in service the following fixed assets in 2016:
GPE does not want to claim any bonus depreciation or Section 179 expensing on any of these assets. Other Information
The Gomezes have the total net capital loss of $6,000 in 2018.
Assuming Gomezes total itemized deduction is $27,000 in 2018 and assume they dont have
any other income or expenses and no contribution to retirement account.
And assuming they are not qualified for any other credits other than child tax credits.
The entire family is covered under health insurance through Marias job.
The Gomezes made timely federal estimated tax payments for 2018 as follows:
37,425 18,900 15,550 10,000
$ 788,400
Item
Date Purchased
Amount
Laptop computers
March 1
$20,500
Printers
June 1
$6,500
Office furniture
September 10
$19,000
April 15, 2018 June 15, 2018 September 15, 2018 January 15, 2019
$11,000 $11,000 $11,000 $11,000
The Gomezes would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.
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