Please complete the tax return on based on the info provided on the attach file, use the 2015 tax rates to complete the return.

Taxation Project: Mr. & Mrs. Lapin 2015 Tax return NOTE: Use 2015 tax rates to complete Lapin's 2015 Tax Return. Following is a list of information for Michael and Amanda Lapin for the tax year 2015. Michael and Amanda are married and have three children, Amara, Bryan, and Skyla. They live at 120 Main Street, Flushing NY 11425. Michael is an Accountant working for a Native American law firm, Native American Justice, Inc. Amanda works part-time for Genetic Creation LLC, a genetic research lab. The Lapins' and their dependents' information is as follows: Name Michael Amanda Social Security No. 111-11-1111 222-22-2222 Age Other Facts 35 30 Accountant Geneticist Student. She has interest income of Amara II (daughter) 333-33-3333 10 $3,500. (See note 1). Bryan (son) 444-44-4444 8 Student. Skyla (daughter) 666-66-6666 3 Attends Saint Francis Pre-K School Retired Nurse - over 50% of her support Lorraine Kingston 777-77-7777 62 comes from the Lapin's. She resides in a (Amanda's mother) nursing home. Lives in NYC and receives 52% support Edward Lapin 888-88-8888 57 from Michael and Amanda. Earns $6,000 (Michael's Uncle) a year from a part-time job. Michael's ex-wife (Do not consider as Evelyn Benjamin 999-99-9999 34 dependent) Bryan's cousin. He lived with the Lapin's Terrence Kingston 100-00-0000 12 for the entire year. Dependents: Assume that all other requirements are met by each potential dependent. Note 1: Amara was the beneficiary of her grandmother's life insurance policy. The money was placed into a court-block interest bearing account until she reaches 18 years old. Michael's Previous Marriage: Michael is obligated to pay Alimony and Child Support as stated in their divorce decree. He is required to make monthly payments of $1000 and $500 for Child Support and Alimony respectively. However, as of December 31, 2015, he made total payment $14,000. Michael and Evelyn both agreed that the outstanding balance will be paid during 2016. The Lapin' W-2 information is as follows: Gross wages Federal Withholding Taxes NYS Withholding Taxes NYC Withholding Taxes Michael 140,000 50,000 10,000 8,000 Amanda 80,000 20,000 7,000 5,000 Interest and Dividends earned by the Lapin are as follows: Types of Interest by Lapin's Family is as follows: Interest on 3.75% 20 year US Treasury Bonds Interest on NYS 4% General Obligation Bonds Interest on N.J. 3.75% State Dormitory Bonds Interest on CD - Chase Bank GE 4.65% 20 year bonds Amount s 3,500 2,500 5,000 1,000 3,500 Other: During 2015, Amanda received a debt forgiveness of $2,500 from American Express. Besides working for the Native America Law Firm, Michael also has his own private consulting practice (Lapin Accounting Consultancy, LLC, EIN: 55-5687541, Business code: 541110, Accounting method: Cash Basis), located at 195 Chambers street, New York, NY 10007. The income and expenses associated with his practice are as follows: Gross Receipts Rent Office Salaries Office Supplies Advertisement Utilities Phone/Internet Accounting Fees Health Insurance Plan - Employees Office Maintenance Office Equipment (see Note 2) Travel (see Note 3) Miscellaneous 305,500 125,000 60,000 11,000 9,000 8,000 3,000 12,000 15,000 5,000 30,000 6,000 1,500 Note 2 - the category office equipment includes printers, computers, fax machines, percolators, phones, microwave, and office refrigerator. Michael is unfamiliar with the tax treatment and therefore requires your help. He is greatly concern with the tax benefits available for the costs incurred for office equipment. Hint: should he capitalized and depreciate the equipment cost, or is there another available tax treatment? Note 3 - Michael visited Miami on a conference that was specific to his business. He spent a total of three days in Miami. However the conference was only two days, but since Michael loved the beach; he decided to stay another day. The total expenses incurred on the trip were 6,000. Unreimbursed Job Related Expenses Amanda attended a Genetics conference in Boston, MA during 2015. Her employer's practice is to reimburse their employees for these conferences. Her total expenses incurred were 3,000. However, she was only reimbursed 2000 as of December 31, 2015. Michael had no unreimbursed expenses for 2015. Group Term Life Insurance Native American Justice, Inc. provides $150,000 of group term life insurance for Michael, who is not a key employee. (Hint: don't forget to consider its effect on gross income). Retirement Contributions During 2015, Mr. & Mrs. Lapin each contributed 6,000 to their Traditional IRA accounts. Assume no AGI limitation prevents the deductions. NYS Tax Refund Mr. & Mrs. Lapin received a 1099 for $5,000 representing a 2014 NYS Tax Refund which was received in 2015. The Lapin itemized their deductions in 2014. Capital Transactions Michael sold the following securities during 2015: Company Shares IBM TI GE AAPL 2,000 1,000 1,000 1,000 Selling Price 185,000 28,000 30,000 85,000 Date sold 12/01/13 06/12/13 12/08/13 11/15/13 Date Acquired 10/15/11 02/21/85 06/15/13 02/07/13 Tax Basis 200,000 8,000 50,000 80,000 Gain/Loss Sale of Principal Residence (see Note 4) Date of sale 06/30/2015 Date Acquired 01/01/2000 Selling Price $1,560,000 Adj. Basis 950,000 Other Selling Exp 34,000 Commission 4 % of sale price Note 4 - Sale of Residence: Mr. & Mrs. Lapin lived in this house for many years. It was acquired in 2000 at a cost of $850,000 and it was their principal residence. Over the years they made major improvements to their home and all capital improvements are documented. Mr. & Mrs. Lapin wish to avail themselves of the $500,000 gain exclusion under IRC Sec 121. Itemized Deductions - Medical Long Term Care Insurance premiums Nike Exercise Rowing Machine (see Note 5) Doctor visits to MD's, & DDS, Prescription Drugs Travelling Expenses (see Note 6) Vitamins & Herbs for Mr. & Mrs. Lapin Visits to local Gypsies and Fortune-tellers (Mrs. Lapin) Medical Insurance reimbursements $15,000 5,000 20,000 8,000 3,250 6,500 15,200 12,500 Note 5 - Medical Expense: Michael has weak muscles in his back. His personal physician prescribed a Nike rowing machine to try to alleviate his lower back pain. Note 6 - Mrs. Lapin took a trip to Miami after been diagnosed by her medical doctor with extreme stress and fatigue. She believes that the trip will elevate her condition, and that I did. Taxes Paid NYS & NYC Income Taxes See W-2 information NYS Sales Taxes on purchase of Boat & living expenses $15,200 Real Estate Taxes 28,000 Personal Property Taxes 10,000 Interest Expense Interest on Home Mortgage Points on home mortgage Mortgage Insurance Premiums $20,000 6,000 8,500 Charitable Contributions Cash contributions to recognized public charities Prior year carry forward charitable contributions $45,000 8,000 Donations of Property: Paintings & Sculpture: (see Note 7) - Cost $ 12,000 - FMV 22,000 Note 7 - Contribution of Property: The painting and sculpture were appraised by a reputable company. Michael believes that the estimated FMV should be $40,000 and not $22,000 as declared by the appraisal company. Miscellaneous Deductions Tax Return Preparation Legal fees - Estate Planning Safe Deposit Box at Chase used to safeguard stock certificates. $2,500 4,000 300 Other Expenses Gambling losses (see Note 8) $24,000 Note 8 - Gambling Losses: Mrs. Lapin enjoys gambling in Las Vegas and she considers herself to be the \"Black-Jack Doctor\". During 2015 she won 14,000 and incurred losses of 38,000. Her net gambling losses were 24,000. After her spring winnings, she has been on a consistent losing streak! Beware Notice: When examining what to include in your Schedule A, take into account all necessary information provided. That is to say, not because most of Schedule A items are found together, means that all. Make sure all relevant forms are properly filled out. Read carefully before making any judgment on the situation Disregard any calculations for AMT (1040 - line 45) and all the credits Take into account any phase-out for Personal Exemption Take into account any limitations on Itemized Deductions Instructions: Prepare the Lapin 2015 tax return using the information available for 2015. The tax return at minimum must include forms: 1040, Sch. A, Sch. C, Sch. B, Sch. D, Form 8949, and Sch. SE (Long), and accompanying Tax Notes. You may also include any other relevant tax forms and worksheets. When calculating the Lapin's tax liability, use the tax rate schedule at the front of your text book and the knowledge you have gained over the semester. Please include only the kiddie taxes owe on the parents return on 1040 line 44. Do not include the income. However, attached the form used to calculate kiddie taxes to your return. Notes are required for each omission or limitation. For Example 1 - if the gains from the sale of Lapin property is included or omitted from gross income, your note should state the amount realized, the property's basis, the gains recognized, and why its included or excluded. Example 2 - if one of Lapin dependents was excluded, you must state in the note, why he/she failed the dependency test. Support your decisions by the stating the source (the text is a great source). Notes must be prepared in the order the information was provided about the Lapin tax situation. The Lapin's would like to contribute 50% of their refund to their 2016 estimate taxes. Submitting your finals: It must be presented in a folder in the following order: 1. 2. 3. 4. 5. 6. 7. 8. Copy of the project Form 1040 Schedule B Schedule C Schedule D & Form 8949 Form SE Schedule A Tax worksheets (include worksheet for Sale of a Residence - see page 12-24 for assistance) 9. Any other worksheet, that maybe applicable 10. Notes for Mr. & Mrs. Lapin 2015 Tax Return Note: Lapin 2015 Tax Return and accompanying Schedules and Notes must be typed