Prepare Form 1040 pg 1&2, Schedule A, B, and D pg 1 & 2.

Form 1040

assume Janis is under age 65

line 40 - total Itemized Deductions from Schedule A

tax on line 44 should be $19,799 -- see Schedule D Tax Worksheet (looks complicated but the overall result is that $1963 qualified dividends and $4711 net long-term capital gain [capital gain distribution] are taxed at 15%, the $2000 collectible gain [stamp collection] is taxed at 28% and the rest of the $89,758 Taxable Income is taxed at regular rates [Tax Table])

Schedule A

Mortgage Interest reported to the taxpayer on Form 1098.

Assume all charitable contributions are cash.

Schedule B

It appears Connect does not allow us to enter the names of the financial institutions and does not allow us to do Part III even though interest or dividend income exceeds $1,500.

Schedule D pages 1 and 2

Do not prepare Forms 8949 for the sale of the FNP stock and stamp collection although a real tax return may require those forms. Use Lines 1a for the stock sale and 8a for the stamp sale.

See page 7-9 for the holding period of gifted property; see page 7-2 for the cost basis of gifted property

Line 18, should be $2,000 from 28% Rate Gain Worksheet and Form 8949 both which we are not preparing. See page 7-10 & 11 for the rule on collectible gains.

Line 6 enter as a negative number the given short-term capital loss carryover.

Line 13 capital gain dividend should be entered here if not automatically entered from Form 1099-DIV using tax software.

Line 17 answer Yes or No.

Line 20 answer No

Chapter 7 TRP 7-2 Janis Blakeley is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. Her SSN is 412-34-5670. Using the following information, complete her tax return for 2015 Kimber Company W-2 Gross Social security tax Medicare tax Federal withholding tax State withholding tax $90,000 5,580 1,305 17.700 2,700 Lee Company W-2 Gross Social security tax Medicare tax Federal withholding tax State withholding tax $22,500 1,395 326 2,300 600 Janis has the following itemized deductions Real estate tax Mortgage interest Charitable contributions $7,633 8.445 3,000 Janis has the following investments 1099-INT (Bank 1) 1099-DIV (Stock 1) $2,510 Ordinary dividends 2,389 1,963 4,711 (1,000) Qualified dividends Capital gain distribution 2014 short-term loss carryover Janis received a gift of 2,000 shares of FNP Inc. stock from her Aunt Jane on January 19 2015. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2014. On June 30, 2015, Janis sold all the shares for $6,000 Janis is an avid stamp collector and purchased a rare stamp on March 20, 2007, for $4,000 She sold the stamp for $6,000 on April 8, 2015 Prepare Form 1040 and all related schedules, forms, and worksheets for 2015. Janis does not donate to the presidential election campaign. Janis had qualifying health care coverage at all times during the tax year (Indicate losses with minus sign and enter all other values as positive amounts.) Use the appropriate Tax Tables 1040 for a Single taxpayer with no dependents 1040 PG 1 040 PG 2S Schedule A Schadule B Schedule D Schedule D Page 1 Page 2 Page 1 of Form 1040. Use provided information and follow instructions on form