PLEASE DO FORM 8829!!! I couldnt find a blank one online so please ignore the numbers on the pic of form 8829 i provided and please use the numbers in the problem. thanks !!!

Note: This problem is for the 2018 tax year. David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David camned consulting fees of S145.000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella's employer but have chosen not to participate in its $ 401(k) retirement plan David's cmployment-related expenses for 2018 are summarized below. Airfare SKOD Lodging 5.000 Meals (during travel status) 4.800 Entertainment 3,600 Ground transportation (c.g. limos, rental cars, and taxis) 800 Business gifts Office supplies (includes postage, overnight delivery, and copying) 1.500 The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. 900 In addition, David drove his 2016 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2018 When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes, see Insurance $2,600 Repairs and maintenance 900 Utilities 4.700 Painting office area; area rugs and plants in the office) 1.800 *Treat as a direct office in home expense. In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Ella works part-time as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy (eg. prior to the beginning of the school year). Assumed that Ella is an employee (not an independent contractor). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below. $690 State and city occupational licenses Professional journals and membership ducs in the American Dental Hygiene Association 140 Correspondence study course (taken online) dealing with teeth whitening procedures 420 Ella's salary for the year is $42.000, and her Form W-2 for the year shows income tax withholdings of $5,000 (Federal) and S1,000 (state) and the proper amount of Social Security and Medicare taxes. 3D 800 510 200,000 . Besides the items already mentioned, the Coles had the following receipts during 2018, Interest income $2,500 IBM bonds 1,200 $4,500 Federal income tax refund for year 2017 Life insurance proceeds paid by Eagle Assurance Corporation Inheritance of savings account from Sarah Cole 50,000 Sales proceeds from two ATVs 9,000 For several years, the Coles' household has included David's divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the designated beneficiary of each). In 2017, the Coles purchased two ATVs for S14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor. Additional expenditures for 2018 include: Funeral expenses for Sarah $4,500 Taxes Real property taxes on personal residence $6,400 Colorado state income tax due (paid in April 2018 for tax year 2017) 310 6,710 Mortgage interest on personal residence (Rocky Mountain Bank) 6,600 Paid church pledge 2,400 Contributions to traditional IRAs for Ella and David (S5,500 + $5,500) 11,000 In 2018, the Coles made quarterly estimated tax payments of $6,000 (Federal) and $500 (state) for a total of $24,000 (Federal) and $2,000 (state). Relevant Social Security numbers are: David Cole 123-45-6788 Ella Cole 123-45-6787 The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next year's tax liability. David will have a self-employment tax liability Using the appropriate forms and schedules, compute the Coles' Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and the various education credits Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required, round all dollar amounts to the nearest dollar. It may be necessary to complete the tax schedules before completing Form 1040. Use the included tax rates schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. please do a form 1040 year 2018 please! of the amount over - 2018 Individual Tax Rate Schedules Single If taxable income is: But not over - over - The Tax is: $9.525 ........... 10% $9.525 $38.700 $952.50 +12% $38,700 $82.500 $4453.50 + 22% $82,500 $157,500 $14089.50 +24% $157,500 $200,000 $32089.50 + 32% $200.000 $500,000 $45689.50 + 35% $500.000 $150689.50 + 37% $0 of the amount over - SO $9.525 $38,700 $82.500 $157,500 $200.000 $500.000 Head of Household If taxable income is: But not over - over - SO $13.600 $13,600 $51.800 $51,800 $82.500 $82,500 $157,500 $157,500 $200,000 $200.000 $500.000 $500.000 The Tax is: ........... 10% $1360.00 + 12% $5944.00 + 22% $12698.00 +24% $30698.00 + 32% $44298.50 + 35% $149298.00 + 37% $13,600 $51,800 $82.500 $157,500 $200,000 $500.000 of the amount Over- $0 Married filing jointly / Qualifying widow(er) If taxable income is: But not over - over - The Tax is: $19.050 ....10% $19.050 $77,400 $1905.00 + 12% $77,400 $165,000 $8907.00 + 22% $165.000 $315.000 $28179.00 +24% $315,000 $400,000 $64179.00 + 32% $400.000 $600,000 $91379.00 + 35% $600,000 $161379.00 + 37% of the amount Over- $0 $19,050 $77,400 $165.000 $315.000 $400.000 $600,000 Married filing separately If taxable income is: But not over- over - $0 $9.525 $9.525 $38.700 $38.700 $82.500 $82.500 $157,500 $157,500 $200,000 $200.000 $300,000 $300,000 The Tax is: . .. 10% $952.50 +12% $4453.50 + 22% $14089.50 +24% $32089.50 + 32% $45689.50 + 35% $80689.50 + 37% $9.525 $38.700 $82.500 $157,500 $200,000 $300,000 1 15.00 Porn 88291 Expenses for Business Use of Your Home Fenty with Schedule Fm 1040 U r te Form for each home you used for business during the year Go to www.n owform for instructions and the latest information 2018 175 1200 Part 1 Part of Your Home Used for Business 1 Area used regularly and exclusively for business, regularly for daycare, or for storage of inventory of product samples instructions 2 Tots area of home 3 Divide line 1 by line 2. Enter the result as a percentage - - For day care facilities not used exclusively for business, go to line 4. All others, go to line 7 4 Multiply days used for daycare during year by hours used per day 4 5 Total hours before during the year 1965 days 24 hours see instructions 5 700 6 Divide line 4 by line 5. Enter the result as a decimal amount. 6 7 Business percentage. For daycare facilities not used exclusively for business, multiply line 6 by line 3 jenter the result as a percentage. All others are the amount from line 3 2 Part Figure Your Allowable Deduction & Enter the amount from Schedule Cine 29, plus any gain derived from the business use of your home, minus any loss from the trade or business not derived from the business use of your home see instructions completing lines 22 9 Casually losses se instructions) 10 Deductible mortgage interest (see instructions) 11 Real estate taxes e instructions 12 Add lines 9, 10, and 11.. 13 Multiply line 12, column ibi, by line 7 14 Add line 12. column land line 13.. 15 Subtract line 14 from line 8. If zero or less, enter-D- 16 Excess mortgage interest See instructions). 16 17 Excess real estate taxes (see instructions) 17 18 Insurance 19 Rent . . . . Sood 20 Repairs and maintenance. . 21 Utilities . . . . . . . . 22 Other expenses (see instructions). . . . . 10.500 23 Addlines 16 through 22 . 24 Multiply line 23. column by line 7. . . . . . 25 Carryover of prior year operating expenses see instructions) 26 Add line 23. columnal line 24, and line 25 27 Allowable operating expenses. Enter the smaller of line 15 or line 26. . 28 Limit on excess casualty losses and depreciation. Subtract line 27 from line 15 29 Excess casualty losses instructions). . . 30 Depreciation of your home from line 42 below ....... 30 31 Carryover of prior year CES Casualty losses and depreciation (see instructions 32 Add lines 29 through 31. ..... 33 Allowable excess casualty losses and depreciation Enter the smaller of line 28 or line 32 34 Addlines 14, 27 and 33... 35 Casualty loss portion, anybomines 14 and 23. Carry amount to Form 4584 is instructions 36 Allowable expenses for business use of your home. Subtract Ine 35 from line 34 Enter here and on Schedule Cine 30. your home was used for more than one business see instructions Part II Depreciation of Your Home 37 Enter the smaller of your home's adjusted basis or fair market value see instructions 38 Value of land included on line 37 39 Basis of building Subtractine 38 from line 37 - - 40 Business basis of building. Multiply line 39 by line 7 41 Depreciation percentage see instructions).. 42 Depreciation allowable see instructions Multiply line 40 bylne 41. Enter here and online 30 above Part IV Carryover of Unallowed Expenses to 2019 43 Operating expenses. Subtract line 27 from line 26. less than zero, enter-O-. - . - .- 44 Exces Ca s es depreciation Subtract line 33 from line 32. less than er enter- For Paperwork Reduction Act Notice, see your tax return instructions NOT EL.EE.E..L.E. | MY E. P600 4 4 For 88290016 Note: This problem is for the 2018 tax year. David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David camned consulting fees of S145.000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella's employer but have chosen not to participate in its $ 401(k) retirement plan David's cmployment-related expenses for 2018 are summarized below. Airfare SKOD Lodging 5.000 Meals (during travel status) 4.800 Entertainment 3,600 Ground transportation (c.g. limos, rental cars, and taxis) 800 Business gifts Office supplies (includes postage, overnight delivery, and copying) 1.500 The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. 900 In addition, David drove his 2016 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2018 When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes, see Insurance $2,600 Repairs and maintenance 900 Utilities 4.700 Painting office area; area rugs and plants in the office) 1.800 *Treat as a direct office in home expense. In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Ella works part-time as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy (eg. prior to the beginning of the school year). Assumed that Ella is an employee (not an independent contractor). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below. $690 State and city occupational licenses Professional journals and membership ducs in the American Dental Hygiene Association 140 Correspondence study course (taken online) dealing with teeth whitening procedures 420 Ella's salary for the year is $42.000, and her Form W-2 for the year shows income tax withholdings of $5,000 (Federal) and S1,000 (state) and the proper amount of Social Security and Medicare taxes. 3D 800 510 200,000 . Besides the items already mentioned, the Coles had the following receipts during 2018, Interest income $2,500 IBM bonds 1,200 $4,500 Federal income tax refund for year 2017 Life insurance proceeds paid by Eagle Assurance Corporation Inheritance of savings account from Sarah Cole 50,000 Sales proceeds from two ATVs 9,000 For several years, the Coles' household has included David's divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the designated beneficiary of each). In 2017, the Coles purchased two ATVs for S14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor. Additional expenditures for 2018 include: Funeral expenses for Sarah $4,500 Taxes Real property taxes on personal residence $6,400 Colorado state income tax due (paid in April 2018 for tax year 2017) 310 6,710 Mortgage interest on personal residence (Rocky Mountain Bank) 6,600 Paid church pledge 2,400 Contributions to traditional IRAs for Ella and David (S5,500 + $5,500) 11,000 In 2018, the Coles made quarterly estimated tax payments of $6,000 (Federal) and $500 (state) for a total of $24,000 (Federal) and $2,000 (state). Relevant Social Security numbers are: David Cole 123-45-6788 Ella Cole 123-45-6787 The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next year's tax liability. David will have a self-employment tax liability Using the appropriate forms and schedules, compute the Coles' Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and the various education credits Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required, round all dollar amounts to the nearest dollar. It may be necessary to complete the tax schedules before completing Form 1040. Use the included tax rates schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. please do a form 1040 year 2018 please! of the amount over - 2018 Individual Tax Rate Schedules Single If taxable income is: But not over - over - The Tax is: $9.525 ........... 10% $9.525 $38.700 $952.50 +12% $38,700 $82.500 $4453.50 + 22% $82,500 $157,500 $14089.50 +24% $157,500 $200,000 $32089.50 + 32% $200.000 $500,000 $45689.50 + 35% $500.000 $150689.50 + 37% $0 of the amount over - SO $9.525 $38,700 $82.500 $157,500 $200.000 $500.000 Head of Household If taxable income is: But not over - over - SO $13.600 $13,600 $51.800 $51,800 $82.500 $82,500 $157,500 $157,500 $200,000 $200.000 $500.000 $500.000 The Tax is: ........... 10% $1360.00 + 12% $5944.00 + 22% $12698.00 +24% $30698.00 + 32% $44298.50 + 35% $149298.00 + 37% $13,600 $51,800 $82.500 $157,500 $200,000 $500.000 of the amount Over- $0 Married filing jointly / Qualifying widow(er) If taxable income is: But not over - over - The Tax is: $19.050 ....10% $19.050 $77,400 $1905.00 + 12% $77,400 $165,000 $8907.00 + 22% $165.000 $315.000 $28179.00 +24% $315,000 $400,000 $64179.00 + 32% $400.000 $600,000 $91379.00 + 35% $600,000 $161379.00 + 37% of the amount Over- $0 $19,050 $77,400 $165.000 $315.000 $400.000 $600,000 Married filing separately If taxable income is: But not over- over - $0 $9.525 $9.525 $38.700 $38.700 $82.500 $82.500 $157,500 $157,500 $200,000 $200.000 $300,000 $300,000 The Tax is: . .. 10% $952.50 +12% $4453.50 + 22% $14089.50 +24% $32089.50 + 32% $45689.50 + 35% $80689.50 + 37% $9.525 $38.700 $82.500 $157,500 $200,000 $300,000 1 15.00 Porn 88291 Expenses for Business Use of Your Home Fenty with Schedule Fm 1040 U r te Form for each home you used for business during the year Go to www.n owform for instructions and the latest information 2018 175 1200 Part 1 Part of Your Home Used for Business 1 Area used regularly and exclusively for business, regularly for daycare, or for storage of inventory of product samples instructions 2 Tots area of home 3 Divide line 1 by line 2. Enter the result as a percentage - - For day care facilities not used exclusively for business, go to line 4. All others, go to line 7 4 Multiply days used for daycare during year by hours used per day 4 5 Total hours before during the year 1965 days 24 hours see instructions 5 700 6 Divide line 4 by line 5. Enter the result as a decimal amount. 6 7 Business percentage. For daycare facilities not used exclusively for business, multiply line 6 by line 3 jenter the result as a percentage. All others are the amount from line 3 2 Part Figure Your Allowable Deduction & Enter the amount from Schedule Cine 29, plus any gain derived from the business use of your home, minus any loss from the trade or business not derived from the business use of your home see instructions completing lines 22 9 Casually losses se instructions) 10 Deductible mortgage interest (see instructions) 11 Real estate taxes e instructions 12 Add lines 9, 10, and 11.. 13 Multiply line 12, column ibi, by line 7 14 Add line 12. column land line 13.. 15 Subtract line 14 from line 8. If zero or less, enter-D- 16 Excess mortgage interest See instructions). 16 17 Excess real estate taxes (see instructions) 17 18 Insurance 19 Rent . . . . Sood 20 Repairs and maintenance. . 21 Utilities . . . . . . . . 22 Other expenses (see instructions). . . . . 10.500 23 Addlines 16 through 22 . 24 Multiply line 23. column by line 7. . . . . . 25 Carryover of prior year operating expenses see instructions) 26 Add line 23. columnal line 24, and line 25 27 Allowable operating expenses. Enter the smaller of line 15 or line 26. . 28 Limit on excess casualty losses and depreciation. Subtract line 27 from line 15 29 Excess casualty losses instructions). . . 30 Depreciation of your home from line 42 below ....... 30 31 Carryover of prior year CES Casualty losses and depreciation (see instructions 32 Add lines 29 through 31. ..... 33 Allowable excess casualty losses and depreciation Enter the smaller of line 28 or line 32 34 Addlines 14, 27 and 33... 35 Casualty loss portion, anybomines 14 and 23. Carry amount to Form 4584 is instructions 36 Allowable expenses for business use of your home. Subtract Ine 35 from line 34 Enter here and on Schedule Cine 30. your home was used for more than one business see instructions Part II Depreciation of Your Home 37 Enter the smaller of your home's adjusted basis or fair market value see instructions 38 Value of land included on line 37 39 Basis of building Subtractine 38 from line 37 - - 40 Business basis of building. Multiply line 39 by line 7 41 Depreciation percentage see instructions).. 42 Depreciation allowable see instructions Multiply line 40 bylne 41. Enter here and online 30 above Part IV Carryover of Unallowed Expenses to 2019 43 Operating expenses. Subtract line 27 from line 26. less than zero, enter-O-. - . - .- 44 Exces Ca s es depreciation Subtract line 33 from line 32. less than er enter- For Paperwork Reduction Act Notice, see your tax return instructions NOT EL.EE.E..L.E. | MY E. P600 4 4 For 88290016