Please help me with the following assignment. Tremendously confused on certain sections!

Property Transactions Tax Return Name: ___________ Class time: Mr. Dean Price is self-employed and owns a manufacturing business. He bought a business equipment (7-year personal property) on 4/1/2013 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2013 and 2014 He also has a pick- up truck used for business (5-year recovery period) acquired on 8/23/2013 for $25,000. On 11/15/2014, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2013 and 2014. On 10/26/2014 Dean sold his old storage building used for his business for $220,000. He purchased the building in 2001 for $100,000. Total depreciation taken on the building is $20,000. His 2014 Business income and expenditures (Schedule -C): Sales $655,000 Cost of goods sold $ 315,000 Other business expenses (incl. deprecation taken on the storage building) $ 140,000 In 2014 Dean also sold various assets. The information about the selling price and tax basis of the property is listed below. Asset Placed in 2014 Accumulated Selling Service (or Sold Initial Cost Depreciation Depreciation Price purchased) Amount Office tables 4/4/2013 10/16/2014 $3,000 $375 $825 $2,900 Office chairs 3/1/2012 11/8/2014 $8,000 $1,000 $2,200 $4,000 Marketable securities 2/1/2014 12/1/2014 $12,000 $0 $0 $20,000 Land held for investment 7/1/2013 11/29/2014 $45,000 $0 $0 $48,000 In 2014 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000. He also has a short-term capital loss carryover of $10,000 from 2009. 1 Property Transactions Tax Return Name: ___________ Class time: Use the worksheet below to calculate the MACRS depreciation amount for the manufacturing equipment and pick-up truck: 2013: Business Date Date Basis for 2013 MACRS Asset Acquired Disposed applying Depreciation MACRS Deduction Business N/A Equipment Pick-up Truck 2014 Business Date Date 2014 MACRS Accumulated Adjusted Asset Acquired Disposed Depreciation Depreciation Basis Deduction Business N/A Equipment Pick-up Truck Total Depreciation Deduction Taken in 2014 (Business Equipment and Truck) _________________________________________ 2014 Net Schedule-C Business income _________________________________________ 2 Property Transactions Tax Return Name: ___________ Class time: 2. Summary Sheet for the Sales of Business Property (Form 4797) I) Sales or Exchanges of Property Used in a Trade or Business (Held for More Than 1 Year) Description Date Date Sold Gross Sales Accumulated Adjusted Gain or (loss) of property acquired Price Depreciation Basis A) B) C) D) II) Ordinary Gains and Losses (incl. property held 1 year or less). Enter zero if not applicable. Description Date Date Sold Gross Sales Accumulated Adj. Basis Gain or of property acquired Price Depreciation (loss) III) Gain from Disposition of Property Under Sections 1245 and 1250 a. Descriptions of Section 1245 property: 1) 2) 3) 4) 5) 6) 7) Description Date Date Gain Accumulated Amount of Remaining of property acquired Sold Depreciation Gain Gain = reported as (4) - (6) Ordinary Total Amount of ordinary gain under Section 1245 _______________________ Remaining 1231 Gains after Section 1245 _____________________ 3 Property Transactions Tax Return Name: ___________ (Form 4797 Part III. continued) Summary Sheet for the Sales of Business Property III.b. Description of Section 1250 property 1) 2) 3) 4) 5 6) 7) Description Date Date Sold Gain Depreciation 25%-Rate Remaining of property acquired allowed Gain Gain = Class time: (4) - (6) Remaining 1231 Gains (from the previous page) after Section 1245 and Section 1250 ____________________ 4 Property Transactions Tax Return Name: ___________ Class time: 3. Summary Sheet on the Sales of Capital Assets (Form 8949) I. Short-term Description Date Date Sold Gross Sales Depreciation Cost Basis Gain or of property acquired Price allowed (loss) II. Long-term Description Date Date Sold Gross Sales Depreciation Cost Basis Gain or of property acquired Price allowed (loss) 5 Property Transactions Tax Return Name: ___________ Class time: 4. Summary Sheet for Capital Gains and Losses (Schedule D) 1.Net Short-term totals from Form 8949 (page 5) 2. Net Long-term totals from Form 8949 (page 5) How much of the Net Long-term capital gain above is subject to the 15/20% tax rate? How much of the Net Long-term capital gain above is subject to the 25% tax rate under 1250? How much of the Net Long-term capital gain above is subject to the 28% tax rate for collectibles? Short-term Capital Gains or Long-term Capital Gain (LTCG) Losses and Capital Loss Carry- overs 28% 25%-Rate Gain 15% (Collectibles) (III.b.6 on page 4) Remaining 1231 Gains after 1245 and 1250 (on page 4): _____________ Net Capital Gain: 6 Property Transactions Tax Return Name: ___________ Class time: Tax Computation A. Capital Gains: Net 15% Rate Long-term capital gain _____________ Net "Unrecaptured Section 1250 Gain" (25% Rate Gain) _____________ Net Collectibles Gain _____________ B. Ordinary Gain Realized ordinary income from disposition of property under Section 1245 ________ Taxpayer's AGI (including Net Schedule C income and other For AGI deductions) and Taxable income (after Standard deductions and one 2014 personal exemption. His filing status is single) AGI __________ Taxable Income: _____________________ Tax Computation Tax based on tax rate schedule X: ____________ Total tax on Capital Gains: _____________ 15% x __________________ 25% x ___________________ 28% x __________________ Self-Employment Tax: __________________ Social security tax = 117,000*12.4% = Medicare tax = Net Schedule-C business income*92.35%*2.9%= Add D1 through D3. This is the 2014 Total Tax: ___________ 7