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^ Prompt above Can you please help me? The calculated amounts I have are incorrect. My incorrect answer is below. (please do not submit the
^ Prompt above
Can you please help me? The calculated amounts I have are incorrect.
My incorrect answer is below. (please do not submit the same answers, I was already told this is incorrect and am asking for assistance)
Joseph Green, age 46 and born 1/1/1972, is single. He lives at 3520 Base Lane, Tuscon, AZ 85701. His Social Security number is 406111112. Joseph wants $3 to go to the Presidential Election Campaign Fund. Joseph's wife, Becky, passed away in June 2017. Joseph's son, Gilbert, who is age 16, resides with Joseph. Gilbert's Social Security number is 405-45-6788. Joseph owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory. His revenues and expenses for 2019 are as follows: * New office equipment ($15,000 ) placed in service 1/1/19; Joseph chose to use immediate expensing 179 election ** $15,000 for employees benefit plan and $5,000 for Joseph Other income received by Joseph includes the following: During the year, Joseph and his sole proprietorship had the following property transactions: 1. Sold Biff, Inc. stock for $40,000 on March 12, 2019. He had purchased the stock on September 5,2016 , for $50,000. 2. Received an inheritance of $200,000 from his uncle, Jerry. Joseph used $125,000 to purchase Gabriel, Inc. stock on May 15, 2019, and invested $75,000 in Gold, Inc. stock on May 30, 2019. 3. Received Orange, Inc. stock worth $10,000 as a gift from his aunt, Jane, on June 17, 2019. Her adjusted basis for the stock was $6,000. No gift taxes were paid on the transfer.Jane had purchased the stock on April 1, 2012. Joseph sold the stock on July 1, 2019, for $25,000. 4. On July 15, 2019, Joseph sold one-half of the Gabriel, Inc. stock for $40,000. 5. Joseph was notified on August 1, 2019, that Yellow, Inc. stock he purchased from a colleague on September 1,2018 , for $42,500 had become worthless. While he perceived that the investment was risky, he did not anticipate that the corporation would declare bankruptcy. 6. On August 15, 2019, Joseph received a parcel of land in Phoenix worth $210,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $235,000, he also received $25,000 cash. Joseph's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2015. 7. On December 1, 2019, Joseph sold the condominium in which he had been living for the past 21 years (2859 Smallhouse Lane, Tuscon, AZ 85701) and moved into a rented townhouse. The sales price was $465,000, selling expenses were $28,500, and repair/maintenance expenses for not previously properly maintaining the property were $9,400. Joseph purchased the condominium for $200,000. Joseph's potential itemized deductions, exclusive of the aforementioned information, are as follows: During the year, Joseph makes estimated Federal income tax payments of $32,000 (payments of $8,000 were made on April 15, 2019, June 15, 2019, September 15, 2019 and December 15, 2019). THIS RETURN IS FOR 2019 - TAX LAWS IN EFFECT FOR 2019 WILL APPLY Compute Joseph's lowest net tax payable or refund due for 2019 assuming that he makes any available elections that will reduce the tax. The tax forms required for your computations are Forms 1040 (and Schedules 1-3), 4562, 8995, 8949 and 8824 and Schedules A, B, C, D, and SE. You are required to complete the 2019 Federal tax return Part II Expenses. Enter expenses for business use of your home only on line 30 . and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 . Use the Simplified \begin{tabular}{l|l|l|l} - If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you & & & \\ checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. & 31 & \\ - If a loss, you must go to line 32 . \end{tabular} 31 Net profit or (loss). Subtract line 30 from line 29. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. - If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. - If you checked 32b, you must attach Form 6198. Your loss may be limited. Paperwork Reduction Act Notice, see the separate instructions. Schedule C (Form 1040) 2020 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation Yes No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation .. . . 45 b If "Yes," is the evidence written? Yes No Part V Other Expenses. List below business expenses not included on lines 826 or line 30 . Salary Expenses Telephone Expenses Bad Debt ExpensesStep by Step Solution
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