PREPARE THE TAX RETURN WITH THE INFORMATION BELOW AND THE SUPPORTING FORMS Chris Smith (SSN 555-95-3598) is a sole proprietor and a partner in a partnership. He lives with his wife, Lisa (SSN 555-82-9832), at 1234 Renaissance Street Newport Beach, CA 92660. They have one Qualifying Child, Gabe, age 7 (SSN 555-08-9375). They file a joint return. Chris owns a 60% interest in CB Capital Investors, LLC and Lisa works as a bartender at a local restaurant and as an independent contractor working weddings. In addition to the information included in the forms provided, they paid $1,343 to the DMV in taxes for their two vehicles, property taxes of 6,000, $4,982 in unreimbursed employee expenses, $6,589 in qualified medical expenses, $1,800 in tax prep fees, and $2,500 of charitable contributions. Chris sold stock this year for 10,000. He purchased the stock for 14,500 5 years ago. Chris contributed 25,000 to CB Capital Investors during the current year. To pay his taxes, he also took a profit distribution of 10,000. CB Capital Investors taxable income for the year was 35,000 (see Sch K-1 attached). He pays his ex-wife 12,000 in alimony/child support. This amount drops to 10,000 when their child turns 18. Chris and Lisa received Gifts of 15,000 during the year. Chris received a settlement of $50,000 for physical injuries from an accident. Lisa?s wedding expenses are listed below: Auto: $546 Supplies: $325 Licenses: $125

Individual Taxation BUS 168a - Fall 2014 Term Project Please prepare a tax return (form 1040 and supporting schedules) with the information on the following pages. Complete using the tax forms provided on iLearn or from IRS website. You may use the 2013 tax forms, but please use 2014 amounts (limitations, standard deduction, exemptions, etc). Do not calculate self-employment tax or any credits as we have not covered this information. PREPARE THE TAX RETURN WITH THE INFORMATION BELOW AND THE SUPPORTING FORMS Chris Smith (SSN 555-95-3598) is a sole proprietor and a partner in a partnership. He lives with his wife, Lisa (SSN 555-82-9832), at 1234 Renaissance Street Newport Beach, CA 92660. They have one Qualifying Child, Gabe, age 7 (SSN 555-08-9375). They file a joint return. Chris owns a 60% interest in CB Capital Investors, LLC and Lisa works as a bartender at a local restaurant and as an independent contractor working weddings. In addition to the information included in the forms provided, they paid $1,343 to the DMV in taxes for their two vehicles, property taxes of 6,000, $4,982 in unreimbursed employee expenses, $6,589 in qualified medical expenses, $1,800 in tax prep fees, and $2,500 of charitable contributions. Chris sold stock this year for 10,000. He purchased the stock for 14,500 5 years ago. Chris contributed 25,000 to CB Capital Investors during the current year. To pay his taxes, he also took a profit distribution of 10,000. CB Capital Investors taxable income for the year was 35,000 (see Sch K-1 attached). He pays his ex-wife 12,000 in alimony/child support. This amount drops to 10,000 when their child turns 18. Chris and Lisa received Gifts of 15,000 during the year. Chris received a settlement of $50,000 for physical injuries from an accident. Lisa's wedding expenses are listed below: Auto: $546 Supplies: $325 Licenses: $125 Country Wide Financial 3,129 Chris Smith 2,000 Ritz Carlton 4,500 Lisa Smith INCOME IS NOT SUBJECT TO SELF EMPLOYMENT TAXES 45,000 Wild Goose Tavern Lisa Smith 4,000 2013 Chris Smith 2013 Chris Smith 21,000 CB Capital Investments Chris Smith 21,000