Prepare the 2016 tax return

In terms of depreciation, the Williams use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), Edgar tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Lily works part time as a substitute for whichever hygienist is ill or on vacation or when one of the clinics is particularly busy (e.g., prior to the beginning of the school year). Besides her transportation, she must provide and maintain her own uniforms. Her below expenses for 2016 a ppcar $690 5380 Uniforms State and City Occupational Licenses Professional Journals and membership daes in $340 the American Dental Hygiene Associate Correspondence study course (taken online) $400 dealing with teeth whitening procedures Lily's salary for the year is $40,000 and her Form W-2 for the year shows income tax withholdings of $4,000 (Federal) and S1,000 (state) and the proper amount of Social Security and Medicare taxes. Lily is a part-time employee, she is not included in her employer's medical or retirement plans. Besides the items already mentioned, the Williams had the following receipts during 2016: Intcrest Income State of Colorado generall $2.500 purpose bonds IBM bonds Wells Fargo Bank CD ?129g S4500 Federal Income tax refund for year 2015 Life insurance proceeds paid by Eagle Assurance Corporation Inheritance of savings account S510 $200,000 $50,000 from Sarah Williams For several years, the Williams' household has included Edgars divorced mother, Sarah, who has been claimed as their dependent. In late November 2016, Sarah unexpectedly died from coronary arrest in her sleep. Unknown to Lily and Edgar Sarah had a life insurance policy and a savings account (with Edgar as the designated beneficiary of each) Additional expenditures for 2016 include: Funeral Expenses for Sarah $4,500 Real peoperty taxes on $6,400