Prepare a partnership or S-corporation tax return. Complete problem C9-58 in your textbook. In addition, you will complete an individual income tax return with the assumption that one of the partners or shareholders from the entity return.

ACC-460 - Federal Taxation

Instructions: Topic 8 Tax Return Problem (C9-58)

You will be working individually to complete a partnership or s-corporation and individual income tax returns. Your instructor will assign one of the entity types during the course. The completed tax returns can be submitted in paper copy during class (if uploaded to LoudCloud please scan and upload one single document. Note: If you upload multiple documents, the assignment will not be graded and you will be required to turn in a paper copy with possible late point deductions). Use 2017 forms only (points will be deducted for using 2016 or 2018).

Required

Prepare a partnership tax return. See data below. You will need the following forms:

Form 1065 and corresponding schedules

Schedule K-1 for Dr. Bailey (from problem C9-58)

For the Schedule K-1. The filing center is Ogden, Utah.

Individual taxpayer information

Individual tax forms required:

Form 1040

Schedule A

Schedule B

Schedule D

Schedule E

Form 8949

Form 4797 (see item 4.i. below)

Dr. Leisa Baileys social security number is 456-12-3789. She is married but does not have any dependents. Her husbands name is Daniel Bailey and his social security number is 123-45-6789.

Additional information to complete the tax returns:

Daniel works at Intel Corporation and earned $160,000 during 2017.

His federal tax withholding was $30,000 and his Arizona income taxes withheld were $8,000. Leisa made federal estimated tax payments of $40,000 and Arizona estimated payments of $9,500

Mortgage interest on their personal residence was $15,200 and property taxes were $5,150.

Additional charitable contributions of $2,750 were paid during the year.

On July 10, 2017 they sold 100 shares of Intel Corporation stock for $70 per share. They purchased the stock on May 1, 2012 for $56 per share.

The Taxpayers have a long-term capital loss carry forward of $5,000.

Assume AMT does not apply.

Apply any refund to estimated tax payments for the next year.

Instead of preparing Form 4797, input any gain/loss from the Sec. 1231 asset on line 14 of form 1040.