Please help me with this assignment, thank you.

Need to calculate answers for all the questions on Page 1.

DATE NAME Document Review Simulation - Jim and Carol Jenson NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, answer the following items relative to their 2018 Form 1040. If an amount is negative, put a minus (-) before the number. If the amount is zero, write 0. 1. Wages, salaries, tips, etc. is 2. Taxable interest $ 3. Taxable dividends $ 4. Business income or (deductible loss) $ 5. Capital gain or (deductible loss) $ 6. Rental real estate income or (deductible loss) 7. Taxable other income $ $ $ 8. Deductible part of self-employment tax 9. Schedule A home mortgage interest deduction $ 10. Schedule A real estate tax deduction $ 11. Schedule A other itemized deductions $ 12. Qualified business inc deduction is 13. Child tax credit and credit for other dependents 14. What is the tax rate on their qualified dividends? 15. Is Carol's business a specified service trade/business (SSTB)? YES/NO Jim and Carol Jenson, ages 48 and 47, respectively, are married and file a joint tax return. Jim is a CPA employed at Jan Apparel Company and Carol is a self- employed architect. They have two dependent children in high school: John, age 14, and Mary, age 17. Jim, Carol, John, and Mary had minimum essential health insurance coverage all year through Jim's employer. They have provided documentation for their year 5 (2018) income and expenses --- - see below. You also have obtained the following information from interviewing them: INTERVIEW NOTES 1. Carol has documentation (not included below) for 2018 to prove the following income and expenses from her self-employment business as an architect: Fees received $55,700 Advertising expenses 6,300 Office expenses 4,420 Business meals ($2,400) and business entertainment ($800) 3,200 Business gifts to 35 clients ($100 gift card to each) 3,500 Business computer purchased and put into service 12/1/18 1,900 Simplified method home office: 360 square foot office (1,800 square foot home) They would like to take the maximum deduction for their expenses in 2018. 2. The Jenson's purchased a rent house on 1/2/18 for $150,000 ($80,000 allocated to the structure and $70,000 allocated to the land). They immediately rented it and have documentation (not included below) for the following income and expenses for 2018: Rental income received ($750 x 12) $9,000 Mortgage interest 6,200 3,310 Real estate taxes Maintenance expense 690 Homeowner's insurance 2,450 Repair expense 880 The Jensons actively participated in the management of the rent house but they do not qualify as real estate professionals. The rental activity is not a qualified trade/business. DOCUMENTS Form W-2 (Read Only) # Employee's socla secunty number 123-77-7TTT b Employer Identlicatie) Eupbe (AIM) 55-66777888 C Employer's name, address, and ZIP code Jan Apparel Co. 5698 Parkway Avenue Red Cove, NH 12345 13 Information in engurnished 10 the Internal Revenue Service. If you OME No. 1545-0008 are required to file a tax returi, a negligarce penalty or other anchon may be mposed on you this income is table and you fail to report it. 1 Wagers, ups, other compensation 2 Federal income tax withheld 90,000.00 32,000.00 3 Social security wages 4 Social security tax withheld 100,000.00 6,200.00 6 Modicare wages and tips & Medicare tax withheld 100,000.00 1,450.00 7 Social Security tips 8 Allocated tips d Contal number g SOMA 10 Decernient cara begitu Employee's first name and artist Last name SW 11 Honqualified plass 12a See Instructions for box 12 D 10,000 12b ASINI Jim Jenson 15 Brooktree Road Red Cove, NH 12345 13 ry englove TROUALE si per X 14 Other 12c uc 20 + Employee's a dress and ZIP coda 15 Sale Empfoyer's stare ID number 16 Seus, et 17 State income tax 1a Local wage tipe, te 19 Lenco tax 20 Locality ramo form W-2 Wage and Tax Statement Copy C For EMPLOYEE'S RECORDS Year 5 Department of the TreasuryIntamal Revenue Service Sate, accurate, FASTI he Refile I elected to defer $10,000 of my salary into my employer- sponsored 401(k) plan during year 5. Form W-2G (Read Only) O CORRECTED i checked PAYER'S DML, street address, city or to provinod or stato, county, and Brass winnings 2. Dale won OMA No. 5545-02:38 zo or forget postal code Samtow Casino 6,000 05/05/year 5 Year 5 1156 Board Avenue 9 Type of wages #Federn income talk with it Form W-2G Red Cove, NH 12345 Poker Toumament $ 5 tralasction Paco Certain Samtow 500 Gambling 7 Warga e identical wagus & Canlar Winnings PAYER'S iederat Hentation bar PAYERS telephone munbe $ RCT 86-8991156 (800) 555-5555 Birnar'a tapasradicado no 10 Window This Is Sportint lx 123-77-7777 intomallon and is being WONER'S nane It Fr! 1.D. 12 Second 1.D. lumnisted to the Intoma! Jim Jenson SS card NH driver license Revahun Srvico. 11 you are required to Staal address including opt. no.) 13 Satz Pri's seeidetzen file a relier, 54 Suate winnings negilgarice pantally ar 15 Brooktree Road other canetton may 669-99-1156 be imposed on you if S this income taxable City or own, province or state, country, and ZIP or foreign postcode to Siata come tax withheld 16. Lonad winnings and the IRS determines that Red Cove, NH 12345 t has not been $ 5 noported. 17 Local income tax with a 16 Nane o cality Copy For Wister's flacards Unde peritis perjay. I sectore that in the best of my trowedge and belief the name, address, and to payer identification numater that I have fumished CONTE entify me as the recipient of the payment and are paymsnts from klestilical usagets, and that a piher persona entitled to any part of a payments. Signature Data Form W-2G www.ire.govw2g Department of the Treasury - Internat Revenue Service I have support for $10,000 in gambling losses during year 5 and another $1,250 of gambling losses that are not documented. Form 1098 - Red Cove (Read Only) O CORRECTED (it checked) RECIPENTSILENDERS tune, street addre, city o loutk, state or provinec, * Lider: The Bount QHB No. 1845-0904 country, ZP or foreign postal code, and telephenie Ma Ariety or be fully deductible byder Lirudbud art inte kayamam Westan Bank Mortgage and the critid value of the 294 Cardardt Lane td property. Ako. Year 5 Interest frou may only due to Red Cove, NH 12345 Irie extent it was broutea ty jou Statement ally it by you, not timbursed by anotte Form 1098 FECIPIENTS bention no. PATER'S cui under i Morgage Interest received from payqVboxowers) Copy 8 55-5715555 123-77-777 $ 15,000 For Payer/Borrowor PAYERSBORROXYER'S nama 2 Poks paid on purchase al principal residence The liformationinba-- 1, 2.indeporthallax lontation ding Jim and Carol Jenson bu had to the but Pev SNGD. If you Street eddfost cuding spt no Hefund of warpald Interest regard to de arcula co panty or.ch 15 Brooktree Road $ Fanary bonposed on you e deumes City orton state or province, country, and ZIP farayn postal code 4 IN LITLICT alta fase you Red Cove, NH 12345 Principal balance at 12/31/year 5: $375,000 stated Medicions for this mortigt inderte or for Account rumber (see instructions) $ habad Orbise 4 del max obert is refund of Real estate taxes paid: $4,000 interest 1 YIXIT FECUTE Form 1098 (keep for your records) www.lrs.gov/form1098 DEDAM of the Treasury - Initial Revenue Servis This is for our primary residence. Car Sale Bill of Sale R. Smith Purchaser (signature) I Jenson Seller (signature) We hereby agree that the vehicle was sold on June 20. year 5, by the Seller, as is, to the Purchaser for the amount below. Make: MaComba Model: MVCD19X Year: Year 2 Title number: 589996643 Vehicle identification number: 796-9663369 Sales price: $12,000 I purchased this car on May 5. year 2, for $19,000. There was no business use for this car. Consolidated 1099-B, Page 1 Year 5 Consolidated Forms 1099 Payer: Sininton Bank Brokerage Division 2209 Second Avenue Red Cove, NH 12345 Client: Jim and Carol Jenson 15 Brooktree Road Red Cove, NH 12345 Account Number: NH978-98700 Amount $56.00 1099-DIV Dividends and Distributions IRS BOX 1a. Total Ordinary Dividends 1b. Qualified Dividends 2a. Total Capital Gaini Distributions 2b. Unrecaptured Section 1250 Gain 2c Section 1202 Gain 2d. Collectibles (28%) Gain 3. Nondividend Distributions 4. Federal Income Tax Withheld 5. Investment Expenses 6. Foreign Tax Paid 8. Cash Liquidation Distributions 9. Noncash Liquidation Distributions 10. Exempt-interest Dividends 11. Specified Private Activity Bond interest Dividends 1099-INT Interest Income Amount IAS Box $244.00 1. Interest Income $244.003. Int on U.S. Savings Bonds 14. Federal Income Tax Withheld 5. Investment Expenses 6. Foreign Tax Paid 7. Foreign Country or U.S. Possession 8. Tax-Exempt Interest $0.00 19. Specified Private Activity Bond Int. 10. Market Discount $0.00 11. Bond Premium 12. Tax-Exempt Bond CUSIP NO. $0.00 1099-B Proceeds from Broker and Barter Exchange Transactions - Summary /RS Box id. Total Proceeds le. Total Cost of Other Basis 1g. Adjustments 4. Federal Income Tax Withheld Amount $43,600.00 $29,000.00 $0.00 $0.00 Consolidated 1099-B, Page 2 Sminton Bank Tax Year 5 Jini and Carol Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Bartes Exchange Transactions Short-tem Gains/Losses - Report on Form 8949, Part I with Box A checked Box 2: Type of Gains/Loss - Short-Term Box 3: Basis reported to the IAS Box 5: Box not checked (covered security) The 1099-B data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the IAS, but may be helpful to complete your return Date Sold or Disposed (Box 1c) Quantity Date Acquired Sold (Box 1b) Description and CUSIP (Box 1a) Aster Corporation common stock CUSIP: 987654321 Proceeds (Box 1d) Cost or Other Basis (Box le) Adjustments (Box 1g) Federal Income Tax Withheld (Box 4) 1,000 02/01/year 5 09/15/year 5 $16,600.00 $11,000.00 $0.00 S0.00 Totals (8949, Pan I with Box A Checked) $16,600.00 $11,000.00 $0.00 $0.00 Page 2 Consolidated 1099-8, Page 3 Sminton Bank Tax Year 5 Jim and Carof Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Barter Exchange Transactions Long-term Gains/losses - Report on Forn 8949, Part II with Box D checked Box 2: Type of Gains/Loss - Long-Term Box 3: Basis reported to the IAS Box 5: Box not checked (covered security) The 1099-B data referenced by a Box number is reported to the IRS. The additional infomation not referenced by a Box number is not reported to the IRS, but may be helpful to complete your return. Dare Sold or Disposed (Box 1c) Quantity Date Acquired Sold (Box lb) Federal Income Tax Withheld (@ox 4) Cost or Other Basis (Box te) Proceeds (Box 10) Adjustments (Box lg) Description and CUSIP (Box la) Tall Corporation common stock, CUSIP: 456321789 500 02/0G/year 2 04/15/year 5 $27,000.00 $18,000.00 $0.00 $0.00 ---- Totals (8949, Part II with Box D Checked) $27,000.00 $18,000.00 $0.00 $0.00 Page 3 WYTY Twitan MAESYWWWWWMFPYETARLIK! DATE NAME Document Review Simulation - Jim and Carol Jenson NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, answer the following items relative to their 2018 Form 1040. If an amount is negative, put a minus (-) before the number. If the amount is zero, write 0. 1. Wages, salaries, tips, etc. is 2. Taxable interest $ 3. Taxable dividends $ 4. Business income or (deductible loss) $ 5. Capital gain or (deductible loss) $ 6. Rental real estate income or (deductible loss) 7. Taxable other income $ $ $ 8. Deductible part of self-employment tax 9. Schedule A home mortgage interest deduction $ 10. Schedule A real estate tax deduction $ 11. Schedule A other itemized deductions $ 12. Qualified business inc deduction is 13. Child tax credit and credit for other dependents 14. What is the tax rate on their qualified dividends? 15. Is Carol's business a specified service trade/business (SSTB)? YES/NO Jim and Carol Jenson, ages 48 and 47, respectively, are married and file a joint tax return. Jim is a CPA employed at Jan Apparel Company and Carol is a self- employed architect. They have two dependent children in high school: John, age 14, and Mary, age 17. Jim, Carol, John, and Mary had minimum essential health insurance coverage all year through Jim's employer. They have provided documentation for their year 5 (2018) income and expenses --- - see below. You also have obtained the following information from interviewing them: INTERVIEW NOTES 1. Carol has documentation (not included below) for 2018 to prove the following income and expenses from her self-employment business as an architect: Fees received $55,700 Advertising expenses 6,300 Office expenses 4,420 Business meals ($2,400) and business entertainment ($800) 3,200 Business gifts to 35 clients ($100 gift card to each) 3,500 Business computer purchased and put into service 12/1/18 1,900 Simplified method home office: 360 square foot office (1,800 square foot home) They would like to take the maximum deduction for their expenses in 2018. 2. The Jenson's purchased a rent house on 1/2/18 for $150,000 ($80,000 allocated to the structure and $70,000 allocated to the land). They immediately rented it and have documentation (not included below) for the following income and expenses for 2018: Rental income received ($750 x 12) $9,000 Mortgage interest 6,200 3,310 Real estate taxes Maintenance expense 690 Homeowner's insurance 2,450 Repair expense 880 The Jensons actively participated in the management of the rent house but they do not qualify as real estate professionals. The rental activity is not a qualified trade/business. DOCUMENTS Form W-2 (Read Only) # Employee's socla secunty number 123-77-7TTT b Employer Identlicatie) Eupbe (AIM) 55-66777888 C Employer's name, address, and ZIP code Jan Apparel Co. 5698 Parkway Avenue Red Cove, NH 12345 13 Information in engurnished 10 the Internal Revenue Service. If you OME No. 1545-0008 are required to file a tax returi, a negligarce penalty or other anchon may be mposed on you this income is table and you fail to report it. 1 Wagers, ups, other compensation 2 Federal income tax withheld 90,000.00 32,000.00 3 Social security wages 4 Social security tax withheld 100,000.00 6,200.00 6 Modicare wages and tips & Medicare tax withheld 100,000.00 1,450.00 7 Social Security tips 8 Allocated tips d Contal number g SOMA 10 Decernient cara begitu Employee's first name and artist Last name SW 11 Honqualified plass 12a See Instructions for box 12 D 10,000 12b ASINI Jim Jenson 15 Brooktree Road Red Cove, NH 12345 13 ry englove TROUALE si per X 14 Other 12c uc 20 + Employee's a dress and ZIP coda 15 Sale Empfoyer's stare ID number 16 Seus, et 17 State income tax 1a Local wage tipe, te 19 Lenco tax 20 Locality ramo form W-2 Wage and Tax Statement Copy C For EMPLOYEE'S RECORDS Year 5 Department of the TreasuryIntamal Revenue Service Sate, accurate, FASTI he Refile I elected to defer $10,000 of my salary into my employer- sponsored 401(k) plan during year 5. Form W-2G (Read Only) O CORRECTED i checked PAYER'S DML, street address, city or to provinod or stato, county, and Brass winnings 2. Dale won OMA No. 5545-02:38 zo or forget postal code Samtow Casino 6,000 05/05/year 5 Year 5 1156 Board Avenue 9 Type of wages #Federn income talk with it Form W-2G Red Cove, NH 12345 Poker Toumament $ 5 tralasction Paco Certain Samtow 500 Gambling 7 Warga e identical wagus & Canlar Winnings PAYER'S iederat Hentation bar PAYERS telephone munbe $ RCT 86-8991156 (800) 555-5555 Birnar'a tapasradicado no 10 Window This Is Sportint lx 123-77-7777 intomallon and is being WONER'S nane It Fr! 1.D. 12 Second 1.D. lumnisted to the Intoma! Jim Jenson SS card NH driver license Revahun Srvico. 11 you are required to Staal address including opt. no.) 13 Satz Pri's seeidetzen file a relier, 54 Suate winnings negilgarice pantally ar 15 Brooktree Road other canetton may 669-99-1156 be imposed on you if S this income taxable City or own, province or state, country, and ZIP or foreign postcode to Siata come tax withheld 16. Lonad winnings and the IRS determines that Red Cove, NH 12345 t has not been $ 5 noported. 17 Local income tax with a 16 Nane o cality Copy For Wister's flacards Unde peritis perjay. I sectore that in the best of my trowedge and belief the name, address, and to payer identification numater that I have fumished CONTE entify me as the recipient of the payment and are paymsnts from klestilical usagets, and that a piher persona entitled to any part of a payments. Signature Data Form W-2G www.ire.govw2g Department of the Treasury - Internat Revenue Service I have support for $10,000 in gambling losses during year 5 and another $1,250 of gambling losses that are not documented. Form 1098 - Red Cove (Read Only) O CORRECTED (it checked) RECIPENTSILENDERS tune, street addre, city o loutk, state or provinec, * Lider: The Bount QHB No. 1845-0904 country, ZP or foreign postal code, and telephenie Ma Ariety or be fully deductible byder Lirudbud art inte kayamam Westan Bank Mortgage and the critid value of the 294 Cardardt Lane td property. Ako. Year 5 Interest frou may only due to Red Cove, NH 12345 Irie extent it was broutea ty jou Statement ally it by you, not timbursed by anotte Form 1098 FECIPIENTS bention no. PATER'S cui under i Morgage Interest received from payqVboxowers) Copy 8 55-5715555 123-77-777 $ 15,000 For Payer/Borrowor PAYERSBORROXYER'S nama 2 Poks paid on purchase al principal residence The liformationinba-- 1, 2.indeporthallax lontation ding Jim and Carol Jenson bu had to the but Pev SNGD. If you Street eddfost cuding spt no Hefund of warpald Interest regard to de arcula co panty or.ch 15 Brooktree Road $ Fanary bonposed on you e deumes City orton state or province, country, and ZIP farayn postal code 4 IN LITLICT alta fase you Red Cove, NH 12345 Principal balance at 12/31/year 5: $375,000 stated Medicions for this mortigt inderte or for Account rumber (see instructions) $ habad Orbise 4 del max obert is refund of Real estate taxes paid: $4,000 interest 1 YIXIT FECUTE Form 1098 (keep for your records) www.lrs.gov/form1098 DEDAM of the Treasury - Initial Revenue Servis This is for our primary residence. Car Sale Bill of Sale R. Smith Purchaser (signature) I Jenson Seller (signature) We hereby agree that the vehicle was sold on June 20. year 5, by the Seller, as is, to the Purchaser for the amount below. Make: MaComba Model: MVCD19X Year: Year 2 Title number: 589996643 Vehicle identification number: 796-9663369 Sales price: $12,000 I purchased this car on May 5. year 2, for $19,000. There was no business use for this car. Consolidated 1099-B, Page 1 Year 5 Consolidated Forms 1099 Payer: Sininton Bank Brokerage Division 2209 Second Avenue Red Cove, NH 12345 Client: Jim and Carol Jenson 15 Brooktree Road Red Cove, NH 12345 Account Number: NH978-98700 Amount $56.00 1099-DIV Dividends and Distributions IRS BOX 1a. Total Ordinary Dividends 1b. Qualified Dividends 2a. Total Capital Gaini Distributions 2b. Unrecaptured Section 1250 Gain 2c Section 1202 Gain 2d. Collectibles (28%) Gain 3. Nondividend Distributions 4. Federal Income Tax Withheld 5. Investment Expenses 6. Foreign Tax Paid 8. Cash Liquidation Distributions 9. Noncash Liquidation Distributions 10. Exempt-interest Dividends 11. Specified Private Activity Bond interest Dividends 1099-INT Interest Income Amount IAS Box $244.00 1. Interest Income $244.003. Int on U.S. Savings Bonds 14. Federal Income Tax Withheld 5. Investment Expenses 6. Foreign Tax Paid 7. Foreign Country or U.S. Possession 8. Tax-Exempt Interest $0.00 19. Specified Private Activity Bond Int. 10. Market Discount $0.00 11. Bond Premium 12. Tax-Exempt Bond CUSIP NO. $0.00 1099-B Proceeds from Broker and Barter Exchange Transactions - Summary /RS Box id. Total Proceeds le. Total Cost of Other Basis 1g. Adjustments 4. Federal Income Tax Withheld Amount $43,600.00 $29,000.00 $0.00 $0.00 Consolidated 1099-B, Page 2 Sminton Bank Tax Year 5 Jini and Carol Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Bartes Exchange Transactions Short-tem Gains/Losses - Report on Form 8949, Part I with Box A checked Box 2: Type of Gains/Loss - Short-Term Box 3: Basis reported to the IAS Box 5: Box not checked (covered security) The 1099-B data referenced by a Box number is reported to the IRS. The additional information not referenced by a Box number is not reported to the IAS, but may be helpful to complete your return Date Sold or Disposed (Box 1c) Quantity Date Acquired Sold (Box 1b) Description and CUSIP (Box 1a) Aster Corporation common stock CUSIP: 987654321 Proceeds (Box 1d) Cost or Other Basis (Box le) Adjustments (Box 1g) Federal Income Tax Withheld (Box 4) 1,000 02/01/year 5 09/15/year 5 $16,600.00 $11,000.00 $0.00 S0.00 Totals (8949, Pan I with Box A Checked) $16,600.00 $11,000.00 $0.00 $0.00 Page 2 Consolidated 1099-8, Page 3 Sminton Bank Tax Year 5 Jim and Carof Jenson Account Number: NH978-98700 1009-B Proceeds from Broker and Barter Exchange Transactions Long-term Gains/losses - Report on Forn 8949, Part II with Box D checked Box 2: Type of Gains/Loss - Long-Term Box 3: Basis reported to the IAS Box 5: Box not checked (covered security) The 1099-B data referenced by a Box number is reported to the IRS. The additional infomation not referenced by a Box number is not reported to the IRS, but may be helpful to complete your return. Dare Sold or Disposed (Box 1c) Quantity Date Acquired Sold (Box lb) Federal Income Tax Withheld (@ox 4) Cost or Other Basis (Box te) Proceeds (Box 10) Adjustments (Box lg) Description and CUSIP (Box la) Tall Corporation common stock, CUSIP: 456321789 500 02/0G/year 2 04/15/year 5 $27,000.00 $18,000.00 $0.00 $0.00 ---- Totals (8949, Part II with Box D Checked) $27,000.00 $18,000.00 $0.00 $0.00 Page 3 WYTY Twitan MAESYWWWWWMFPYETARLIK