Question
Prepare a 2016 Form 1040 for the individual below. Also prepare Schedules D,and Form 8949. If you need more information to fill out a form,
Prepare a 2016 Form 1040 for the individual below. Also prepare Schedules D,and Form 8949.
If you need more information to fill out a form, just make it up and make a note to ask the client later. PERSONAL INFORMATION & WAGES
Lala Chambers, a divorced single taxpayer and practicing attorney, lives at 9551 Oak Leaf Lane in Pine Cove, AZ 86035. Her social security number is 412-34-5670 (date of birth 2/27/1972).
Her W-2 contained the following information:
Wages (box 1) = $83,401.55 |
Federal W/H (box 2) = $ 9,782.15 |
Social security wages (box 3) = $83,401.55 |
Social security W/H (box 4) = $ 5,170.90 |
Medicare wages (box 5) = $83,401.55 |
Medicare W/H (box 6) = $ 1,209.32 |
In addition, Lala made alimony payments totaling $9,600 for the year to her former husband Alex, an unemployed mine worker, whose social security number is 412-34-5671. He found an old girlfriend on Facebook from high school; that is why they got divorced.
She made estimated tax payments this year of $10,000 each quarter of 2016.
STOCK SALES
Hint: Use Form 8949 and Schedule D. She had the following stock transactions for the year:
Stock Shares | Date Purchased | Date Sold | Sale Price | Cost Basis |
5,500 | 7/8/15 | 9/12/16 | $25,000 | $18,000 |
800 | 3/12/16 | 10/21/16 | 43,000 | 47,000 |
2,800 | 2/13/09 | 10/21/16 | 30,000 | 22,000 |
She also owns 20 shares of Apple stock, which she purchased for $1,000 in 1979. It is now trading at $100,000. She is going to hold onto it for a while.
2016 Form 1040
https://www.irs.gov/pub/irs-pdf/f1040.pdf
Form 8949
https://www.irs.gov/pub/irs-pdf/f8949.pdf
Schedule D.
https://www.irs.gov/pub/irs-pdf/f1040sd.pdf
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