Question
Requires Forms 1040 , Schedule 1 , Schedule 2 , Schedule A , Schedule C , Schedule D , Schedule SE Form 4562 , From
Requires Forms 1040, Schedule 1, Schedule 2, Schedule A, Schedule C, Schedule D, Schedule SE Form 4562, From 4797 and From 8995
Norman and Leslie Beber are married and file a joint return in 2020. They live at 12345 Hemenway Avenue, Marlborough, MA 01752. Norman is a self-employed tax preparer and his SSN is 412-34-5670. Leslie is a software programmer and her SSN is 412-34-5671. She had the following income and expenses for the year:
Leslie's W-2: |
|
Gross wages | $ 100,776 |
Social security tax | 6,248 |
Medicare tax | 1,461 |
Federal withholding tax | 18,735 |
State withholding tax | 4,800 |
Norman was the sole proprietor of NAMA Tax Service. His business is located at 123 Main Street, Marlborough, MA 01752, and his business code is 541213. He had the following revenue and expenses (Cash basis):
Revenue | $ 80,000 |
|
Expenses: |
|
|
Advertising | 1,200 |
|
Insurance | 3,200 |
|
Telephone | 2,400 |
|
Office rent | 18,000 |
|
Utilities | 4,800 |
|
Office supplies | 5,000 |
|
Depreciation | 6,041 | (must be allocated to the 1231 assets listed next) |
Norman had the following business assets:
- Office furniture: Purchased for $4,950 on May 20, 2018. The equipment is being depreciated over seven-year MACRS 200% declining balance. Norman sold it on May 15, 2020, for $4,000.
- Office equipment: Purchased a copier for $13,800 on January 10, 2020. The copier is being depreciated over five-year MACRS 200% declining balance. Norman makes no elections for 179 or bonus depreciation.
- Computer and equipment: Purchased a computer system for $8,900 on January 2, 2019. The computer is being depreciated over five-year MACRS 200% declining balance. Norman makes no elections for 179 or bonus depreciation.
Norman and Leslie had the following other sources of income and deductions:
- Interest from a CD in the amount of $1,410.
- Long-term loss carryover from 2019 of $5,000.
- Real estate taxes of $8,459.
- Home mortgage interest of $16,600.
- Charitable contributions in cash over the year of $2,500; all receipts and acknowledgments were received from the charitable organizations.
Norman has made four quarterly installments of $250 each as estimated taxes for 2020. All estimated tax payments were paid by the due date using the 1040-ES coupons.
Required: Prepare Form 1040 and the 9 related schedules, forms, and worksheets for Norman and Leslie Beber for 2020. The Bebers do not donate to the presidential election campaign.
Need ALL the tax forms and schedules completed.
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