Please see the individual income tax return preparation project, please help how to construct one. thank you. I just need to know how to start on this project 

X Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X | = | Untitled - Paint File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. > > Other bookmarks Paste Select Q Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. CONTINUE MY SUBSCRIPTION (16 bookmarks) PROBLEM 1 Roger R. and Michelle N. Stewart (ages 45 and 46) are married and live at 641 Cody Way, Casper, WY 82609. Roger is a consulting engineer, and Michelle is a paralegal. They file joint return and use the cash basis for tax purposes. 1. Trained as a mining engineer, Roger has developed considerable expertise in the treatment and disposition of waste material. He is also well versed in the Federal and state requirements for land reclamation projects. Roger operates a consulting business through which he advises clients on these matters. Roger's business activity code is 541990. Most of his clients are small and medium-size mine owners/operators located in Wyoming and contiguous states (e.g., Montana, Idaho, Utah). Usually, Roger is retained by a client on a contract fee basis and M is reimbursed for all out-of-pocket expenses. In performing his services, Roger usually visits the job site and later submits his recommendations in a written report along with a statement for his services and expenses. Roger received the following amounts from his consulting business in 2018: Fees for services rendered $ 92,800 Expense reimbursements: Airfare $8,200 Meals 6,100 AF Lodging 5,200 Lir Transportation (taxis, airport limos, car rentals) 920 3rc Subtotal for expense reimbursement 20,420 Total received $113,220 2. Roger also provided services for the following companies from his office; there- fore, there are no travel expenses. These fees are not included in the receipts listed in item 1 above. Echo Mining: Work done in December 2018; payment received January 2019 $5,100 Sesa Mining: Work done in December 2017; paymer ved January 2018 4,400 Dit Cormorant Mining: W ed to date 3,700 Eq att Since Cormorant Mining is currently in bankruptcy, Roger does not expect to collect any of this fee. Vie 3. Other expenses paid by Roger in 2018 relating to his practice are as follows: To he + 19 19 1152 x 648px 100% + Type here to search Fi 9 ~ x ( ) ENG 9:42 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X | 6 - |1-Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q 6 4 G WOW . Outline : Apps f thang truong fo @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. >> Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION Apps f thang truong fb @ YouTube M Gmail Parent Demographic. W up Student Login | Uni.. >> Other bookmark Other expenses paid by Roger in 2018 relating to his practice are as follows: To Search Contribution to H.R.10 (Keogh) retirement plan $9,000 he Chegg Study Textbook Solutions Expert Q&A Practice Premiums on medical insurance (covering self, spouse, and dependents) 3,800 Supplies-landscape models purchased from topographer for projects 3,200 Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. Advertising in trade journals 2,400 Office expense 1,200 CONTINUE MY SUBSCRIPTION Business phone and Internet service 860 State occupation license 300 (16 bookmarks) Subscriptions to trade journals 240 Membership dues to trade associations 180 PROBLEM 1 4. Roger operates his consulting business out of an office in his home. Twenty per- Roger R. and Michelle N. Stewart (ages 45 and 46) are married and live at 641 Cody Way, cent of the 3,000-square-foot living area is devoted to the office. Roger inherited Casper, WY 82609. Roger is a consulting engineer, and Michelle is a paralegal. They file the home on Cody Way from his father who died on June 6, 2011. At that time, a joint return and use the cash basis for tax purposes. the home had a fair market value of $400,000 ($40,000 of which was allocated 1. Trained as a mining engineer, Roger has developed considerable expertise in to the land). The Stewarts moved into the home in autumn of 2011, and Roger the treatment and disposition of waste material. He is also well versed in the immediately set up his home office. The home's current fair market value is Federal and state requirements for land reclamation projects. Roger operates a $500,000 ($50,000 allocated to the land). County land records reflect that Roger's consulting business through which he advises clients on these matters. Roger's father bought the land in 1972 for $6,000 and built the house in 1976 at a cost of business activity code is 541990. Most of his clients are small and medium-size $60,000. Roger depreciates the business use of his home using MACRS. Additional mine owners/operators located in Wyoming and contiguous states (e.g., Montana, 2018 costs related to the home are as follows: Idaho, Utah). Usually, Roger is retained by a client on a contract fee basis and 7 is reimbursed for all out-of-pocket expenses. In performing his services, Roger Utilities $4,800 usually visits the job site and later submits his recommendations in a written Repairs and maintenance 2,900 report along with a statement for his services and expenses. Roger received the following amounts from his consulting business in 2018: Insurance 2,300 Fees for services rendered $ 92,800 The 2018 property taxes and mortgage interest are listed in item 15. In addi- Expense reimbursements: tion to the repairs and maintenance noted above, Roger had the office repainted Airfare $8,200 at a total cost of $1,200. Meals 6,100 Over the years, Roger has properly deducted the cost of all the furniture and Lodging 5,200 Transportation (taxis, airport limos, car rentals) 920 equipment used in his office either as $ 179 expense or bonus depreciation in Subtotal for expense reimbursement 20,420 the year those assets were placed in service. On March 5, 2018, Roger purchased Total received $1 13,220 a heavy-duty, fire-resistant file cabinet with security-vault features for $4,800. He made the acquisition to safeguard and maintain the privacy of client data. Con- Roger also provided services for the following companies from his office; there- sistent with past years, Roger prefers to avoid capitalizing and depreciating the fore, there are no travel expenses. These fees are not included in the receipts listed in item 1 above. cabinet if the law allows. Echo Mining: Work done in December 2018; payment received January 2019 $5,100 V J 19 1 1920 x 1080px H Size: 440.7KB 100% +) Type here to search 9 L ~ x ( ) ENG 9:42 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X |9 6 - 12- Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q WOW . Outline : Apps f thang truong fo @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. >> Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni.. >> Other bookmark LavuICL II UIC law allows. On February 4, 2017, Roger paid $41,000 (including sales tax) for an Infiniti Chegg Study Textbook Solutions Expert Q&A Practice Search crossover SUV (gross weight under 6,000 pounds). No trade-in was involved, and he did not claim any $ 179 expense or bonus depreciation on the cost last year. Under the actual operating cost method, he depreciates the SUV using MACRS. (Hint: See Table 3 in the instructions to Form 4562.) His operating expenses for Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. the Infiniti for 2018 are as follows: CONTINUE MY SUBSCRIPTION Gasoline $3,300 Auto insurance 1,600 3. Other expenses paid by Roger in 2018 relating to his practice are as follows: To Repairs 240 Auto club dues 180 Contribution to H.R.10 (Keogh) retirement plan $9,000 Oil changes and lubrication 120 Premiums on medical insurance (covering self, spouse, and dependents) 3,800 License and registration 60 Supplies-landscape models purchased from topographer for projects 3,200 Roger drove the Infiniti a total of 14,500 miles during 2018, 13,050 of which Advertising in trade journals 2,400 were driven for business purposes. During business use, Roger received three Office expense 1,200 moving traffic violations for which he paid $680 in fines. He also incurred tolls Business phone and Internet service 860 and parking charges of $440. State occupation license 300 Subscriptions to trade journals 240 Membership dues to trade associations 180 4. Roger operates his consulting business out of an office in his home. Twenty per- 6. Michelle is a licensed paralegal and is employed on a part-time basis by several cent of the 3,000-square-foot living area is devoted to the office. Roger inherited local attorneys. She works in their different offices between the hours of 9 AM the home on Cody Way from his father who died on June 6, 2011. At that time, and 3 PM, three days a week. She commuted to work in the family Suburban and the home had a fair market value of $400,000 ($40,000 of which was allocated drove a total of 813 miles and paid parking fees of $310. Her 2018 earnings and to the land). The Stewarts moved into the home in autumn of 2011, and Roger job-related expenses are summarized as follows: immediately set up his home office. The home's current fair market value is Combined wages from three employers $58,000 $500,000 ($50,000 allocated to the land). County land records reflect that Roger's Subscriptions and dues to professional organizations father bought the land in 1972 for $6,000 and built the house in 1976 at a cost of 180 Continuing education correspondence course 120 $60,000. Roger depreciates the business use of his home using MACRS. Additional Occupational license fee 80 2018 costs related to the home are as follows: Since Michelle is a part-time employee, her employers do not cover her job- Utilities $4,800 related expenses. The correspondence course is required continuing education so Repairs and maintenance 2,900 that she can retain her license. Michelle is thinking about applying to law school, Insurance 2,300 which would require her to sit for the LSAT Exam. During 2018, she spent $350 The 2018 property taxes and mortgage interest are listed in item 15. In addi- on an LSAT preparation course. tion to the repairs and maintenance noted above, Roger had the office repainted Because Michelle is a part-time employee, she is not covered by any of her at a total cost of $1 onn emplovers' medical or retirement plans. During 2018. she contributed $5.500 to 19 1 1920 x 1080px H Size: 819.6KB 100% + Type here to search Fi ~ x (17 ) ENG 9:43 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X |76 - 13 - Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. Q WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. >> Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION Apps f thang truong fo @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni.. >> Other bookmark on an LSAT preparation course. Because Michelle is a part-time employee, she is not covered by any of her Chegg Study Textbook Solutions Expert Q&A Practice Search employers' medical or retirement plans. During 2018, she contributed $5,500 to a traditional IRA that she had established several years ago. The Stewarts use the automatic mileage method to calculate any tax deductions to which they are entitled for use of the Suburban. Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. 7. With funds received from the settlement of his father's estate, Roger purchased CONTINUE MY SUBSCRIPTION rental property at 4620 Cottonwood Lane. Of the $250,000 purchase price, $30,000 was allocated to the land. After an $80,000 renovation to the house (e.g., LaDIICI II UIC law allows. replaced the roof, installed new flooring throughout the house, and installed a 5. On February 4, 2017, Roger paid $41,000 (including sales tax) for an Infiniti new furnace), the property was rented beginning February 1, 2012. In 2016, the crossover SUV (gross weight under 6,000 pounds). No trade-in was involved, and Stewarts decided their investment would be more marketable if the house was he did not claim any $ 179 expense or bonus depreciation on the cost last year. fully furnished. Consequently, they spent $38,000 on new furniture, drapes, and Under the actual operating cost method, he depreciates the SUV using MACRS. appliances. All of the furnishings were placed in service May 1, 2016. The Stew- (Hint: See Table 3 in the instructions to Form 4562.) His operating expenses for arts did not claim $ 179 expense or bonus depreciation for the year those assets the Infiniti for 2018 are as follows: were placed in service. Under the current lease agreement, the property rents for Gasoline $3,300 $2,200 a month. Rent is due the first day of each month. Utilities are not included Auto insurance 1,600 in the rent. Information regarding the property for 2018 is as follows: Repairs 240 Auto club dues 180 Oil changes and lubrication 120 7. With funds received from the settlement of his father's estate, Roger purchased License and registration 60 rental property at 4620 Cottonwood Lane. Of the $250,000 purchase price, Roger drove the Infiniti a total of 14,500 miles during 2018, 13,050 of which $30,000 was allocated to the land. After an $80,000 renovation to the house (e.g., replaced the roof, installed new flooring throughout the house, and installed a were driven for business purposes. During business use, Roger received three moving traffic violations for which he paid $680 in fines. He also incurred tolls new furnace), the property was rented beginning February 1, 2012. In 2016, the and parking charges of $440. Stewarts decided their investment would be more marketable if the house was fully furnished. Consequently, they spent $38,000 on new furniture, drapes, and appliances. All of the furnishings were placed in service May 1, 2016. The Stew- arts did not claim $ 179 expense or bonus depreciation for the year those assets were placed in service. Under the current lease agreement, the property rents for . Michelle is a licensed paralegal and is employed on a part-time basis by several $2,200 a month. Rent is due the first day of each month. Utilities are not included local attorneys. She works in their different offices between the hours of 9 AM in the rent. Information regarding the property for 2018 is as follows: and 3 PM, three days a week. She commuted to work in the family Suburban and drove a total of 813 miles and paid parking fees of $310. Her 2018 earnings and Rent received $28,600 job-related expenses are summarized as follows: Property/casualty insurance premiums paid 3,100 $58,000 Property taxes paid 2,400 Combined wages from three employers Subscriptions and dues to professional organizations 180 Yard maintenance paid 1,200 Repairs 800 19 1 1920 x 1080px Size: 808.9KB 100% + Type here to search 9 ~ x (17 () ENG 9:43 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X | 6 = 14- Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. >> Other bookmarks Paste Select Brushes OGAL . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION Apps f thang truong fo @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni.. >> Other bookmark The rent received includes $2,200 for January 2019. The tenants prepaid the Search rent in mid-December because they went on vacation during the Christmas/New Chegg Study Textbook Solutions Expert Q&A Practice Year holidays. In addition to the property taxes listed above, Roger paid a special tax assessment of $1,300 to the City of Casper for repaving the street in front of the property. The Stewarts use MACRS to depreciate the rental home and the Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. furnishings within it. CONTINUE MY SUBSCRIPTION The Stewarts acquired 1,000 shares of common stock in Cormorant Mining on March 7, 2017, to hold for investment purposes. Roger performed services for the on an LSAT preparation course. company in late 2016, submitting a bill for $3,900. Because Cormorant was expe Because Michelle is a part-time employee, she is not covered by any of her riencing cash flow problems at the time, Roger accepted the stock as payment employers' medical or retirement plans. During 2018, she contributed $5,500 to for his services. Unfortunately, Cormorant is currently in bankruptcy (see item 2 a traditional IRA that she had established several years ago. The Stewarts use above). In late 2018, the bankruptcy judge announced that creditors will receive a the automatic mileage method to calculate any tax deductions to which they are fraction of what they are owed and shareholders will recover nothing with respect entitled for use of the Suburban. to their equity investments in the company. The stock is not publicly traded. 7. With funds received from the settlement of his father's estate, Roger purchased rental property at 4620 Cottonwood Lane. Of the $250,000 purchase price, $30,000 was allocated to the land. After an $80,000 renovation to the house (e.g., replaced the roof, installed new flooring throughout the house, and installed a 9. On March 10, 1997, Roger's father gave the Stewarts a plot of land located in new furnace), the property was rented beginning February 1, 2012. In 2016, the Teton County as an anniversary gift. It had a value of $150,000 at the time of the Stewarts decided their investment would be more marketable if the house was gift, and no gift tax was required to be paid on the transfer. The land had been fully furnished. Consequently, they spent $38,000 on new furniture, drapes, and purchased by Roger's father on June 1, 1987, for $50,000. In December 2017, a appliances. All of the furnishings were placed in service May 1, 2016. The Stew- real estate developer contacted the Stewarts and made an offer to buy the prop- arts did not claim $ 179 expense or bonus depreciation for the year those assets erty. After considerable negotiations, the Stewarts agreed to transfer the Teton plot were placed in service. Under the current lease agreement, the property rents for in return for $8,000 in cash and four city lots in Laramie (WY) worth $792,000 $2,200 a month. Rent is due the first day of each month. Utilities are not included from the developer. The Stewarts considered the city lots to be a good invest- in the rent. Information regarding the property for 2018 is as follows: ment because they are located in a part of the city that is experiencing significant growth. The exchange occurred on March 4, 2018. The real estate developer paid for all closing costs and legal fees related to the exchange. 7. With funds received from the settlement of his father's estate, Roger purchased 10. Roger inherited an antique gun collection from his father when he died. Although rental property at 4620 Cottonwood Lane. Of the $250,000 purchase price, Roger has no idea what his father's cost basis was in these guns, the collection $30,000 was allocated to the land. After an $80,000 renovation to the house (e.g., had a date-of-death value of $22,000. Concerned about the maintenance and replaced the roof, installed new flooring throughout the house, and installed a security of the collection, Roger sold it to a dealer for $29,000 on July 10, 2018. new furnace), the property was rented beginning February 1, 2012. In 2016, the 11. On July 12, 2004, using $50,000 of funds she had received from an aunt's life Stewarts decided their investment would be more marketable if the house was insurance policy, Michelle purchased grazing land in Converse County (WY). On fully furnished. Consequently, they spent $38,000 on new furniture, drapes, and August 2, 2017, she sold the land to a local rancher for $75,000. Under the terms appliances. All of the furnishings were placed in service May 1, 2016. The Stew- of the sale, Michelle received a down payment of $15,000 and 10 annual notes arts did not claim $ 179 expense or bonus depreciation for the vear those assets fecm and Michelle will also annakore simple intranet of On/ on the muststand 19 19 1920 x 1080px Size: 898.3KB 100% + Type here to search Fi L ~ x (17 ) ENG 9:43 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X 1 6 - 15-Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. Q WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. >> Other bookmarks Paste Select Brushes OGAL . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W UD Student Login | Uni.. >> Other bookmark 11. On July 12, 2004, using $50,000 of funds she had received from an aunt's life insurance policy, Michelle purchased grazing land in Converse County (WY). On Chegg Study Textbook Solutions Expert Q&A Practice Search August 2, 2017, she sold the land to a local rancher for $75,000. Under the terms of the sale, Michelle received a down payment of $15,000 and 10 annual notes of $6,000 each. Michelle will also receive simple interest of 8% on the outstand- Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. ing principal balance each year. Michelle negotiated the 8% interest rate since she is taking on the risk of financing this acquisition for the rancher. Michelle CONTINUE MY SUBSCRIPTION collected $10,800 on August 2, 2018, from the rancher: $6,000 on the note and interest of $4,800. The rent received includes $2,200 for January 2019. The tenants prepaid the 12. The Stewarts had several Schedule D transactions during 2017 that netted to a rent in mid-December because they went on vacation during the Christmas/New short-term capital loss of $7,000. Of this loss, $3,000 was deducted in 2017, and $4,000 carried over to 2018. Year holidays. In addition to the property taxes listed above, Roger paid a special tax assessment of $1,300 to the City of Casper for repaving the street in front of the property. The Stewarts use MACRS to depreciate the rental home and the 13. Vivian Olson, Michelle's widowed mother, has lived with the Stewarts for several furnishings within it. years and has been claimed by them as a dependent. On December 30, 2017, Vivian 8. The Stewarts acquired 1,000 shares of common stock in Cormorant Mining on suffered a heart attack. After a few days in the ICU of a local hospital, Vivian died March 7, 2017, to hold for investment purposes. Roger performed services for the on January 5, 2018. In early February 2018, the Stewarts paid the following expenses company in late 2016, submitting a bill for $3,900. Because Cormorant was expe related to Vivian: riencing cash flow problems at the time, Roger accepted the stock as payment for his services. Unfortunately, Cormorant is currently in bankruptcy (see item 2 Burial expenses $17,400 above). In late 2018, the bankruptcy judge announced that creditors will receive a Medical expenses incurred in 2017 not covered by Medicare 2,800 fraction of what they are owed and shareholders will recover nothing with respect Medical expenses incurred in 2018 not covered by Medicare 6,500 to their equity investments in the company. The stock is not publicly traded. Remainder of church pledge for 2018 900 Besides personal and household effects, Vivian's major asset was a life insur- ance policy. As the sole beneficiary of the policy, Michelle received $45,000 of death benefits on March 30, 2018. 9. On March 10, 1997, Roger's father gave the Stewarts a plot of land located in Teton County as an anniversary gift. It had a value of $150,000 at the time of the In addition to the items already noted, the Stewarts had the following receipts gift, and no gift tax was required to be paid on the transfer. The land had been during 2018: purchased by Roger's father on June 1, 1987, for $50,000. In December 2017, a Interest income- real estate developer contacted the Stewarts and made an offer to buy the prop- City of Cheyenne general purpose bonds $1,900 erty. After considerable negotiations, the Stewarts agreed to transfer the Teton plot Certificate of deposit at Wells Fargo Bank 1,100 in return for $8,000 in cash and four city lots in Laramie (WY) worth $792,000 Money market account at Bank of America 400 from the developer. The Stewarts considered the city lots to be a good invest- Yard sale proceeds 950 ment because they are located in a part of the city that is experiencing significant Qualified dividends on Meadowlark Corporation common stock 700 growth. The exchange occurred on March 4, 2018. The real estate developer paid for all closing costs and legal fees related to the exchange. Jury duty pay 420 19 1 1920 x 1080px H Size: 1.1MB 100% + Type here to search Eli 9 ~ x ( ) ENG 9:43 PM 12/1/2019Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + X 1 6 - 15-Paint X File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q 6 4 G WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. > > Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Imag Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + 0 Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. - C chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew... Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + - X @15 = 16 - Paint X File Home View C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. WOO . D Outline 1: Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W UD Student Login | Uni. > > Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit 2 Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors CONTINUE MY SUBSCRIPTION 11. On July 12, 2004, using $50,000 of funds she had received from an aunt's life Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. insurance policy, Michelle purchased grazing land in Converse County (WY). On CONTINUE MY SUBSCRIPTION August 2, 2017, she sold the land to a local rancher for $75,000. Under the terms of the sale, Michelle received a down payment of $15,000 and 10 annual notes At their yard sale, the Stewarts sold used furniture, books, toys, and other of $6,000 each. Michelle will also receive simple interest of 8% on the outstand- household goods having an estimated original cost of $1,800. In connection with ing principal balance each year. Michelle negotiated the 8% interest rate since her jury duty assignment in June, Michelle drove the Suburban 40 miles and she is taking on the risk of financing this acquisition for the rancher. Michelle incurred expenses of $30 for parking and $45 for meals. collected $10,800 on August 2, 2018, from the rancher: $6,000 on the note and interest of $4,800. 12. The Stewarts had several Schedule D transactions during 2017 that netted to a 15. In addition to the items already noted, the Stewarts had the following expendi- short-term capital loss of $7,000. Of this loss, $3,000 was deducted in 2017, and $4,000 carried over to 2018. tures for 2018: Medical and dental bills for the Stewarts (other than those relating to 13. Vivian Olson, Michelle's widowed mother, has lived with the Stewarts for several Vivian, see item 13) $7,800 Charitable contributions (not including Vivian's pledge, see item 13) 8,700 years and has been claimed by them as a dependent. On December 30, 2017, Vivian suffered a heart attack. After a few days in the ICU of a local hospital, Vivian died Ad valorem property taxes on personal residence 5,800 Interest on home equity loan used to finance the purchase of a recreational on January 5, 2018. In early February 2018, the Stewarts paid the following expenses vehicle in April 2018 1,090 related to Vivian: The Stewarts drove the Suburban 420 miles to various medical and dental Burial expenses $17,400 appointments. Wyoming has no state or local income tax but does impose a Medical expenses incurred in 2017 not covered by Medicare 2,800 general sales tax. The county in which they live imposes an additional local Medical expenses incurred in 2018 not covered by Medicare 6.500 sales tax of 1%. Although they do not keep track of their sales taxes, the Stewarts Remainder of church pledge for 2018 900 paid $1,600 of sales tax on the recreational vehicle they purchased in April 2018. Besides personal and household effects, Vivian's major asset was a life insur- 16. Besides Vivian (see item 13), the Stewarts' household includes two daughters, ance policy. As the sole beneficiary of the policy, Michelle received $45,000 of Mckenna (age 19) and Kayleigh (age 16), and one son, Jared (age 14). Mckenna death benefits on March 30, 2018. graduated from high school in 2017. She earned $19,000 during 2018, all of 14. In addition to the items already noted, the Stewarts had the following receipts which she put into her college savings account. She heads off to college in fall during 2018: 2019. Kayleigh and Jared are full-time students in high school and middle school, respectively. Kayleigh earned $1,800 from a summer job, which she put into her Interest income- college savings account. City of Cheyenne general purpose bonds $1,900Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X X 1 6 - 15-Paint X + File Home View > C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew.. Q 6 4 G WOW . Outline : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni. > > Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Imag Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + 0 Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew... Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + - X @150 = 17-Paint X File Home View C A chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. WOW . D Outline 1: Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W LD Student Login | Uni. Other bookmarks Paste Select Brushes OGAD . Fill Size Color Color Edit 2 Edit with colors Paint 3D Chegg Study Textbook Solutions Expert Q&A Practice Search Clipboard Image Tools Shapes Colors Citation Machine: Ame X Bb Individual Income Tax X Homework Help - Q& x C Need The Following F X + Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. F - C chegg.com/homework-help/questions-and-answers/problem-1-roger-r-michelle-n-stew. CONTINUE MY SUBSCRIPTION : Apps f thang truong fb @ YouTube M Gmail Parent Demographic.. W up Student Login | Uni.. >> Other bookmark For tax year z That a Federal income tax overpayment Of 9150, which they applied toward their 2018 income tax. Michelle's income tax with- holdings for the year are $5,100, and the Stewarts made Federal quarterly tax Chegg Study Textbook Solutions Expert Q&A Practice Search payments totaling $12,000 ($3,000 each installment). 18. Relevant Social Security numbers are as follows: Restart your subscription to keep accessing solutions. Your Chegg Study subscription will expire on December 3, 2019. Name Social Security Number CONTINUE MY SUBSCRIPTION Roger Stewart 111-11-1112 Michelle Stewart 123-45-6785 At their yard sale, the Stewarts sold used furniture, books, toys, and other Vivian Olson 123-45-6786 household goods having an estimated original cost of $1,800. In connection with Mckenna Stewart 123-45-6787 her jury duty assignment in June, Michelle drove the Suburban 40 miles and Kayleigh Stewart 123-45-6788 incurred expenses of $30 for parking and $45 for meals. Jared Stewart 123-45-6798 15. In addition to the items already noted, the Stewarts had the following expendi- tures for 2018: Requirements Prepare a 2018 Federal income tax return with appropriate supporting forms and sched- Medical and dental bills for the Stewarts (other than those relating to Vivian, see item 13) $7,800 ules for the Stewarts. In doing this, follow these guidelines: Charitable contributions (not including Vivian's pledge, see item 13) 8,700 Make necessary assumptions for information not given but needed to complete Ad valorem property taxes on personal residence 5,800 the return. Interest on home equity loan used to finance the purchase of a recreational vehicle in April 2018 1,090 . The Stewarts are preparing their own return. . The Stewarts have the necessary written substantiation (e.g., records, receipts) to The Stewarts drove the Suburban 420 miles to various medical and dental support the transactions reported in their tax return. appointments. Wyoming has no state or local income tax but does impose a . If the Stewarts have an overpayment of tax, they want it applied to their 2019 general sales tax. The county in which they live imposes an additional local estimated taxes. sales tax of 1%. Although they do not keep track of their sales taxes, the Stewarts paid $1,600 of sales tax on the recreational vehicle they purchased in April 2018