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Quick assistance would be greatly appreciated!! Maria A. Solo (SSN 318-01-6921) lives at 190 Glenn Drive, Grand Rapids, Michigan 49527 2005. Maria (age 45 and
Quick assistance would be greatly appreciated!!
Maria A. Solo (SSN 318-01-6921) lives at 190 Glenn Drive, Grand Rapids, Michigan 49527 2005. Maria (age 45 and single) claims her aunt Selda Ray (SSN 282-61-4011) as a dependent. Selda lives with Maria. Maria owns and operates the Reliable Drug Store at 1816 First Street in Grand Rapids, Michigan 49503-1902, in which she materially participates the entire year. Her EIN is: 38-9654321.Employer quarterly payroll tax returns were filed as required, and Maria reports on the accrual method, but used the direct write-off method to compute bad debt expense. Her business code is 446110 . She does not deduct expenses for an office in her home. An examination of Maria's business records reveals that the depreciable property includes furniture and fixtures, a delivery truck, and store equipment. The depreciation expense shown on the 2021 income statement meets the income tax requirements for depreciation for using the mentioned assets during 2021. Maria rounds calculations to the nearest dollar. Miscellaneous expenses include the following: Maria also pays $4,500 in State Income Estimated Taxes for 2021; and, property taxes on her personal vehicles of $450; in addition to her personal mortgage interest of $7,000. Further, she has evidence of church contributions of $2,000 in the form of a letter from her church. Other income for Maria includes a salary of $100 each month for her services as a member of a working committee of the Drug Association. Her Form W-2 from the Association shows wages of $1,200 and federal income tax withheld of $296. Through her work as an employee of the Drug Association. Maria is able to purchase her own full year health insurance coverage for $500 per month. She also had $1,000 of out of pocket medical expenses. Thus, Maria is compliant with the ACA mandate. Maria also earned $320 in taxable interest. Maria made federal estimated tax payments totaling $5,000 during 2021. This amount is reported on the Form 1040 - Page 2. Maria has some rental property - her former personal residence. It was rented for the entire year to the same lessee; and, its address is 123 Liberty Street, Grand Rapids, Michigan 49503-1902. Maria should use Schedule E to report her Rental Income and Expenses. She has had the following transactions for the rental property: Maria also was invested in the stock market; and, she had some transactions for the tax period 2021. She would use Schedule D to report her stock transactions. She had the following stock sales in 2021 - she did not buy any new stock for the year 2021. She sold 100 shares of Budweiser Stock for $125 per share on July 15, 2021 purchased on July 3, 2017 for $75 per share. She sold 100 shares of Proctor \& Gamble Stock for $100 per share on July 15, 2021 purchased on July 25,2020 for $75 per share. She also sold 100 shares of McDonalds Stock for $175 per share on July 18,2021 purchased on August 15,2017 for $120 per share. She also has a Long-Term Loss Carry Forward of $6,500. Please prepare 2021 tax form 1040 and its related schedules(schedules 1, 2, and 3) along with Schedules A, C, D, E, Form SE and Form 8949 for Maria Solo using the forms provided from the IRS website: WWW.IRS.GOV You will also need to complete the Forom Qualified Dividends and Capital Gain Tax Worksheet to compute the tax for Maria. Also, Maria does not want $3 to go to the Presidential Election Campaign fund. She signs the return on April 15, 2021. The instructor will provide the amount of the Qualified Business Income (QBI) deduction. In addition, the instructor will provide some check figures. Please prepare the tax return NOT USING a computer or computer program; please prepare the tax return by hand. If not prepared by hand ... points will be counted off. Ronn. Maria drove ber personal automobile for 14,619 business miles during the year. Total miles for the year were 32,815. There were 1,300 commuting miles. This is Maria's only car. She bas kept a written log documenting ber business miles. Maria first used the car in ber business on May 4 , 2017. She uses the standard mileage methodStep by Step Solution
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