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please make sure look all the numbers and things, do not copy answer from someone on here, because i just posted same questions 3 weeks
please make sure look all the numbers and things, do not copy answer from someone on here, because i just posted same questions 3 weeks ago, he did not good very good job on that questions.. and MAKE SURE you got ALL the FORMS!
Jerry R. (age 52, SSN 367-83-9403) and Janet K. (age 48, SSN 361-73-4098) Apps file a joint return. They reside at 410 E. Vernon Avenue, Carlock, Illinois 61725-1287. Use the following information to prepare the Appses' tax return. Use the approach shown in Examples 10-12 in Chapter 11 to compute the Appses' tax liability (1101.03). They both elect to have $3 to go to the presidential campaign fund and file their return on April 10, 2016. The Appses' household includes David A. Apps, their 12 year old son (SSN 965-26-4381), and Edwin R. Apps (SSN 157-43-2587), Jerry's 78 year old father. Janet and Jerry provide over half of the support of both David and Edwin. David has no income of his own; Edwin received $4,500 in nontaxable social security benefits during the year. Jerry works as a carpenter. The information on his Form W-2 is show below. Jerry is an active participant in his employer's 401(k) plan. Taxable wages Social security and Medicare tax withheld Federal income tax withheld State income tax withheld $150000 ? 19000 8000 Janet owns and operates J&J Networking. The principal business code is 454390. Janet has no employer ID number. She uses the accrual basis in her business and the cost method for valuing the inventory. No changes have been made in the inventory system. Janet operated her business for all 12 months and has an office in her home that she uses exclusively and regularly for business. Janet materially participates in the business. Information relating to her business operation is as follows: Gross receipts Returns and allowances Beginning inventory Purchases Ending inventory Expenses: Advertising Bank service charges Contribution to SIMPLE plan Commissions Depreciation on equipment placed in service in 2013 Dues and publications Insurance (business) $85000 900 2,700 28,625 3,825 $400 24 10,000 3,200 1,700 220 650 Office expense Supplies Travel Means and entertainment Other business taxes Miscellaneous expenses Postage expense $80 310 1,035 490 560 35 110 In addition to the above expenses, Janet uses her personal car in her business. She keeps good records of her business mileage and uses the standard mileage method. The car was first used in the business on May 1, 2012. During 2015 Janet drove 7,631 miles, of which 1,205 were drive for business. The rest were personal miles. Information related to the Appses' home: Total area of home Area used for business FMV of home, for purposes of Form 8829, line 36 Adjusted basis of home, for purposes of Form 8829, line 36 Value of land, Form 8829, line 37 Year the home office was first placed in service Mortgage interest Real estate taxes Homeowner's insurance Utilities 3500 square feet 1400 square feet $240,000 195,000 20,000 2010 $6,250 2,400 680 3,200 The Appses own a four-unit apartment building that they actively manage. They paid $100,000 for the building in 1994. Of this amount, $25,000 was allocated to the land. The Appses use MACRS to depreciate the building, which is located at 19 Sunset Road in Carlock, IL 60501. All units were rented for the entire year. Information on the apartments is shown below. Rental revenue Rental expenses: Real estate taxes Utilities Insurance Cleaning and maintenance Legal and professional fees Mortgage interest Repairs Supplies $23000 4,800 1,780 1,550 5,200 125 7,200 4827 2325 The Appses had other income consisting of the follow. Neither Jerry nor Janet had any interest in a foreign trust or bank account. Interest from mom Interest from Champion Savings Interest on bonds from the State of Illinois Qualified dividends from General Morris Corporation Qualified dividends from Eagle Corporation Qualified dividends from Roper Corporation UnQualified dividends 225 $2,750 930 425 150 650 300 The Appses have a $4,950 long-term capital loss carryover from 2014. They also sold the following shares of common stock during 2015. No cost basis was provided on any of the Forms 1099-B. Number of shares 100 50 200 100 Company Roper Corp. Fastco Corp. Eagle Corp. South Corp. Date Acquired 5/1/16 2/14/16 3/16/11 3/14/15 Cost $5,000 3,250 6,200 11,500 Date Sold 6/12/16 7/20/16 8/10/16 1/24/16 Sales Price $7,500 12,950 8,100 6,500 A summary of the unreimbursed payments the Appses made during the year includes: Prescription meds Doctor bills Dentist bills Hospital bills Transportation Eyeglasses Over the counter meds Jerry Janet David Edwin Total $50 $200 $25 $1,000 $1,275 60 500 30 200 790 150 40 200 0 390 0 1,800 0 2,100 3,900 8 72 24 16 120 0 122 125 0 247 0 50 30 70 150 Taxes: Sales tax Balance due on 2014 state income tax return Refund on 2014 federal income tax return Real estate taxes $1,200 425 725 2,400 Vacation home interest Mortgage interest Credit card interest 1202 $6,250 975 Interest: Cash contributions: Church United Way Presidential election campaign $2,300 1250 50 In addition to the cash contributions, the Appses donated five shares of S&W common stock to their church on July 30. The stock had been purchased on December 15, 2014, for $2,200. The fair market value of the stock on July 30 was $6,000. Janet and Jerry each contribute the maximum amount allowed for 2016 to their respective traditional IRAs. They also make the following other payments during the year: Rental of safe deposit box for securities Tax preparation fee (2014 Form 1040) Jerry's union dues Automobile registration Loan to mother Paid for cemetery plot $120 524 1,200 150 5000 2500Step by Step Solution
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