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Please Complete the Table (1) - (7) using the facts (1-11) and PLEASE show calculations! Use the space below to calculate Schedule E supplemental income
Please Complete the Table (1) - (7) using the facts (1-11) and PLEASE show calculations!
Use the space below to calculate Schedule E supplemental income and loss: Colin and Keely Draper (ages 43 and 41) are married and live in Charlotte, NC. Their address is 2468 Orchard Circle, Charlotte, NC 28205 . They have 3 children, Jack (age 12), Henry (age 10), and Sofia (age 7). Their niece, Ella (age 4), moved in with them during the year when Ella's parents died. Their social security numbers are: 1. Colin is employed as a corporate attorney for Starr Industries. His 2022 Form W-2 is below: Form M=2 Wage and Tax Statement Colin participates in Starr's 401(k) plan as well as the nonqualified deferred compensation plan offered to key employees. He deferred $8,000 of salary in the NQDC plan during 2022. 2. Keely is an independent sales consultant for a direct sales company and works from home. She sells organic cleaning products, mainly through small parties and social media. She provides the following information: *Keely uses the cost method to value closing inventory. The beginning inventory amount was $4,000 and ending inventory was $5,000. No payments were made that require Form 1099 to be filed. 3. Colin and Keely received Forms 1099-DIV reporting $11,000 of ordinary dividend income - $10,000 qualified and $1,000 nonqualified. They also received Form 1099-INT reporting $4,500 of interest on corporate bonds (Schedule B is not required). 4. Colin and Keely reported the following information related to investments: - They have a long-term capital loss carryover from last year of $4,200. - They sold the following stocks during the year: INote: AII stock transactions were reported on rorm IUYy-B, Inciuaing pass. 5. Colin and Keely own rental property in Florida. The address is 902 Gulf Shore Drive, Naples, FL 34102 . The property was purchased June 1,2012 at an original cost of $399,000. The fully furnished property is rented year-round. Gulf Coast Realty is engaged as a property manager to manage the rental work. In 2022 , the property brought in $3,600 per month in rent, with 10% of each rental payment being taken by Gulf Coast Realty as property management fees. The Drapers also incurred the following expenses related to the property: Forms 1099 for payments made to contractors were filed as required. 6. Both Colin and Keely had traditional IRAs that they rolled over into Roth IRAs during 2022. They received Forms 1099-R showing the IRA account balances at the time of distribution were $16,000 and $16,000, respectively. The amounts were contributed to their Roth IRA accounts within 60 days. 7. Colin and Keely paid $18,100 of interest on their primary residence (acquisition debt of $750,000 ). They also paid $4,500 of real estate taxes on the home. 8. The Drapers had a $250 balance due on their North Carolina income tax return last year (2021 tax return filed in 2022). They also paid $1,000 of personal property taxes. 9. Colin and Keely made the following charitable contributions this year: 10 (to replace items lost in fire) 10. The Drapers made 4 quarterly estimated payments during 2022 of $1,000 each. There was an overpayment of $400 on their 2021 Form 1040 that they elected to apply to 2022. 11. Colin and Keely provide the following additional information: - They both want to contribute to the presidential election campaign. - They did not receive, sell, exchange, or otherwise acquire any financial interest in any virtual currency during 2022. - Any overpayment should be refundedStep by Step Solution
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