Prepare a 2019 individual tax return using the following fact pattern. Compute net tax payable or refund due for Alice and Bruce Byrd for 2019. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their social security numbers are 123-45-6789 and 111-11-1111, respectively. Alices birthday is September 21, 1968 and Bruces is June 27, 1962. They live at 473 Revere Avenue, Newtown, NY 10187. Alice is the office manager for Ames Dental Clinic, 433 Broad Street. Newtown, NY 10187(employer identification number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788(employer identification number 11-1111111). He is also a self -employed attorney and has a part time practice. The following information is shown on their Wage and Tax Statements (Form W-2) for 2019.

Line Description Alice Bruce Wages, tips and other compensation $52,600 $61,500 Federal income tax withheld 4,180 5,990 Social Security wages 52,600 61,500 Social Security tax withheld 3,261 3,813 Medicare wages and tips 52,600 61,500 Medicare tax withheld 763 892 15. State NY NY 16. State wages, tips, etc. 52,600 61,500 17. State income tax withheld 2,280 2,990

The following information is for Bruces law practice: Income $60,000 Utilities $3,000 Rent $12,000 Supplies. $5,000 Salaries $10,000 Disbursements $3,000 The Byrds support their two children, Cynthia (born January 15, 2006, Social Security number 123-45-6788) and John (born February 7, 2008, Social Security number 123-45-6786)..

During 2019, the Byrds furnished 60% of the total support of Bruces widower father, Sam Byrd (born March 6, 1934, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his social security benefits. Sam died in November and Bruce, the beneficiary of a policy on Sams life, received life insurance proceeds of $600,000 on December 28th. The Byrds had the following expenses relating to their personal residence during 2019:

Property taxes $10,720 Qualified interest on home mortgage 9,130 Repairs to roof 4,780 Utilities 3,810 Fire and theft insurance 2,290

The following facts relate to medical expenses for 2019:

Medical insurance premiums $4,380 Doctor bill for Sam incurred in 2018 and not paid until 2019 7,760 Operation for Sam 7,310 Prescription medicines for Sam 860 Hospital expenses for Sam 2,850 Reimbursement from insurance company, received in 2019 3,000

The medical expenses for Sam represent most of the 60% Bruce contributed toward his fathers support.

They also engaged in a few stock transactions. They sold 100 shares of Green Company Stock for $10,000 on February 15, 2019. Their cost basis is $2,000. They had purchased the stock on March 15, 2009. They sold 50 shares of Orange Company Stock for $8,000 on March 3, 2019. They had purchased the stock on December 20, 1017 for $12,000. Other relevant information follows:

When they filed their 2018 state return in 2019, the Byrds paid additional state income taxes of $950. During 2019, Alice and Bruce attended a dinner dance sponsored by the Ames Police Disability Association (a qualified charitable organization). The Byrds paid $400 for the tickets. The cost of comparable entertainment would normally be $160. The Byrds contributed $4,800 to Ames Presbyterian Church and gave used clothing(cost of $1,100 and fair market value of $450) to the Salvation Army. All donations are supported by receipts and are in very good condition. In 2019, the Byrds received interest income of $2,695, which was reported on a Form 1099-INT from Second National Bank. Bruce paid $320 for an annual subscription to the Journal of Franchise Management

SCHEDULED (Form 1040 or 1040-SR) Capital Gains and Losses OMB No. 1545-0074 Schedule D Form 1040 or 1040-SA 2019 Page 2 2019 Part III Summary Department of the Treasury Internal P ue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Scheduled for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8, 9, and 10. Attachment Sequence No 12 16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . Names) shown on return Your social security number Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? Yes No If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part1 Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lgi Gain or loss lines below. Austments Subtract column Proceeds to gain or loss from from column(d, and This form may be easier to complete if you round off cents to sales price) for other basis) Forms 9, Part I, combine the result whole dollars. line 2 column with column If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040 SR. line 6: or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22 If line 16 is zero, skip lines 17 through 21 below and enter-O-on Form 1040 or 1040-SR, line 6, or Form 1040-NR, line 14. Then go to line 22. fa Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions). enter the amount, if any, from line 7 of that worksheet . . . . . . . . . . . . . . .. . .. 18 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet ..... 19 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form the smaller of: 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, The loss on line 16; or ($3,000), or if married filing separately. ($1,500) . . . . . . . . . . . 21 lay 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .14 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . 7 Not short-term capital gain or loss). Combine lines ta through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part Ill on the back Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) thi Gain or loss See instructions for how to figure the amounts to enter on the Adjustments Subtract column) lines below. Proceeds Cost to gain or loss from from column (d, and This form may be easier to complete if you round off cents to sales price) for other basis) Forms) 8949, Part II combine the result line 2. columna with column whole dollars. Ba Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . 10 Totals for all transactions reported on Form(s) 8949 with Box F checked. . . . . . . . . . . . . . 11 Gain from Form 4797, Part I: long-term gain from Forms 2439 and 6252; and long-term gain or loss) from Forms 4684, 6781, and 8824 ..... 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 | 12 131 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 15 Net long-term capital gain or loss). Combine lines Ba through 14 in column (h). Then go to Part III on the back, For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 11338H Schedule D Form 1040 or 1040-SR) 2019 Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D Form 1040 or 1040-SR, 2019 14 SCHEDULED (Form 1040 or 1040-SR) Capital Gains and Losses OMB No. 1545-0074 Schedule D Form 1040 or 1040-SA 2019 Page 2 2019 Part III Summary Department of the Treasury Internal P ue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Scheduled for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8, 9, and 10. Attachment Sequence No 12 16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . Names) shown on return Your social security number Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? Yes No If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part1 Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lgi Gain or loss lines below. Austments Subtract column Proceeds to gain or loss from from column(d, and This form may be easier to complete if you round off cents to sales price) for other basis) Forms 9, Part I, combine the result whole dollars. line 2 column with column If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040 SR. line 6: or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22 If line 16 is zero, skip lines 17 through 21 below and enter-O-on Form 1040 or 1040-SR, line 6, or Form 1040-NR, line 14. Then go to line 22. fa Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions). enter the amount, if any, from line 7 of that worksheet . . . . . . . . . . . . . . .. . .. 18 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet ..... 19 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form the smaller of: 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, The loss on line 16; or ($3,000), or if married filing separately. ($1,500) . . . . . . . . . . . 21 lay 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .14 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . 7 Not short-term capital gain or loss). Combine lines ta through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part Ill on the back Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) thi Gain or loss See instructions for how to figure the amounts to enter on the Adjustments Subtract column) lines below. Proceeds Cost to gain or loss from from column (d, and This form may be easier to complete if you round off cents to sales price) for other basis) Forms) 8949, Part II combine the result line 2. columna with column whole dollars. Ba Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . 10 Totals for all transactions reported on Form(s) 8949 with Box F checked. . . . . . . . . . . . . . 11 Gain from Form 4797, Part I: long-term gain from Forms 2439 and 6252; and long-term gain or loss) from Forms 4684, 6781, and 8824 ..... 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 | 12 131 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 15 Net long-term capital gain or loss). Combine lines Ba through 14 in column (h). Then go to Part III on the back, For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 11338H Schedule D Form 1040 or 1040-SR) 2019 Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D Form 1040 or 1040-SR, 2019 14