Political contributions (Mayor's office) $ 250 Church donations Real estate taxes on home 12.300 Home mortgage interest 1,200- Tax return preparation fees 12,000 Credit card interest 350 220 Automobile insurance premiums 600 Uniforms for Joan 125 (n) Compute the sales tax deduction and enter the amount on line 5 of the Schedule A (use the pages A-3 to A-6 and A-14 to A-16 of the Form 1040, Schedule A instructions, [ go to IRS.gov ] . Some were issued on the first day of class), Assume a state sales rate of 7 1/4% (California) and a local rate of 2%. Noah likes to invest in the stock market. During the year he sold the following securities; Date Stock Acquired Date Sold 2/1 1/16 1/15/19 Sales Prices Cost Basis Texico $4.500 $2.300 GM 9/30/18 2/05/19 6.090 5,000 IBM 10/02/96 1/07/19 12.000 1:600 The expenses of sale are included in the cost basis. Noah has a long-term capital loss carryover from last year of $2.300. | see line 14. schedule D | During the year; Noah and Joan received the following dividends: dividends ! Exxon $320 Coca Cola 268 Texas Utilities 220 All stocks, bonds, and savings were purchased or established with community property. 7. Noah and Joan own rental property located at 6431 Gary Cu., San Diego, California 92115, The following is the revenue and expenses for the year. Rent income $10.500 Insurance 550 Interest expense (Mortgage) 7,000 Property taxes 1.000 Miscellaneous expenses 500 Depreciation ($15,000 in prior years) 3,000Required: Although Noah and Joan do not believe their tax return will be unduly complicated, they do realize their limitations and come to you for assistance. You are to prepare their income tax return in good form, signing the return as the preparer. (1) Determine Noah and Joan's tax liability and net tax payable (or refund due) for 2019 assuming a joint return is filed | NOTE: This is a 2019 problem!!! 1. (2) Complete Forms 1040, 2441 and 8949 and Schedules 1, 2, 3, A, B, C, D. E, and SE. Omit Form 4562. |ignore Form 8995 and line 10 of the Form 1040; re QBI; see textbook page 8-21 1. (3) Billie Bob's and Mary Sue's social security numbers are 111-72-1433 and 217-11-3411, respectively. (4) The tax I. D. no. and address of ROUND UP DAY CARE CENTER is 76-1234987 and 1200 Allen Rd., Santee, CA, 92073.NOAH AND JOAN ARC'S TAX RETURN Noah and Joan Are live with their family at 4342 Josie Jo, Santee. California 92071. Noah's social security number is 434-11-331 1: Joan's is 456-87-5432, Both are in their mid-thirties and enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city. The Ares have two children, a son names Billie Bob who is seven years old and a daughter names Mary Sue who is five years old. Billic Bob is in the second grade. The Arcs paid $2,800 to the Roundup Day Care Center to take care of Mary Sue while they worked. Because she is a firefighter, Joan was home in the afternoon to care for Billie Bob after school. 2. For the current year, Joan's W-2 from the city fire department showed the following Wages ( Santee Fire Dept.) Federal income tax withheld $27,000 1,050- State income tax withheld 1,200 Soc. Sec. & Medicare tax withheld 1.674 & 392 Blue Cross insurance premiums 750 Union dues 550 Noah made federal income tax estimated payments of $10,0:00 and state income tax estimated payments of $1.900 during the current year (The federal estimated payments were $2,500 per quarter and the stale payments were $250 per 3. quarter. The dates of cach payment were 4/15/19, 6/15/19, 9/15/19 and 12/31/19). Noah's pet store is located at 18542 Mission Road, Santee, CA, 92072, The name of the store is the "The Ark," and its taxpayer I.D. number is 987655678. The review and expenses for the year are as follows: Sales Revenue 5144,0007 Expenses: Supplies Insurance 730 Accounting foes 1.800% Wages 25.0007 Payroll taxes 2.250 Miscellaneous 2,700 Depreciation (Form 4562) 7.2010 - Total Expenses 101,700 Net Income $ 42,300 - | NOTE#2: This is a 2019 problem. Done to match the forms available. !!! ). (1) See chapter 3 for the 2019 exemption amount. OK to use the 2019 tax tables In your text. Noah and Joan paid the following amount during the year (all by check)
