Robert &Catherine Jones 2017 Tax Return Information Family members and Dependents: The following is a list of information for Robert and Catherine Jones for the tax year 2017. Robert and Catherine are married and have three hildren Dick. Adam, and Roberta. They live at 345 Main Street, Great Neck, N.Y. 11425. Robert is an attorney and he is self-employed in his own law firm: Jones Legal Consultancy in Manhasset, NY. Catherine is a Professor (PHD) in Biology at Queens College (CUNY) in ens, NY 2017 Tax Information regarding the Jones's and their dependents' are as foll Name Social Security Age Other Facts Robert -Husband Catherine Wife 54 Lawyer and Self Employed 48 Professor of Biology at Queens College 224-32-2888 Full-time student at Cornell University Univ. Dick is very good student and he Dick (Son) 246-56-7788 21 earned $150,000 from rovalties. This is from his science inventions and pending research projects. Attends Public School in Great Neck. N.Y. He lives at home with Mom & Dad Adam (son) 456-78-8956 12 Roberta attends Columbia University Grad School. Roberta is married to Stan Smith Roberta (daughter)6 666-66-6666 24 and is supported by him. The Jones's regularly contribute to Roberta & Stan's support Retired Nurse and Catherine's Mother. She received $25.000 from her pension in Lorraine Smith (Catherine's mother) 777-77-7777 82 | 2017, The Jones's contributed over 50% of her support. She lives in New York City in her own apartment Robert's Uncle. He lives in NYC b himself. He receives 55% of his support from Robert& Catherine. He earned Edward James (Robert's Uncle) 888-88-8888 57 S4.100 in 2017 from a part-time job Tracy Smith 999-99-9999 47 Robert's ex-wife. See note below Robert's cousin. He earned $3.000 of income from part-time work. He lived with the Jones family and was supported Edward James 100-00-0000 19 by them for the entire vear Dependents: Ass ume that all other requirements are met by each potential dependent Robert's Previous Marriage: Robert is obligated to pay Alimony and Child Support as stated in the divorce decree to his ex-wife, Tracy Smith. He is required to make monthly payments of S650 and $500 respectively, for Child Support and Alimony. During 2017, Robert made total payments of S12,500 to Tracy. Robert and Tracy both agreed that the outstanding balance will be paid by 12/31/17, -)4% ayo The Jones's W-2 information is as follows: RobertCatherine Gross wages Federal Withholding Taxes NYS Withholding Taxes NYC Withholding Taxes 120.000 25.000 15.000 10.000 Interest and Dividends earned by the Smiths' and reported on Form 1099's are as follows: Tvpes of Interest/Dividends Interest on 3.75% 20 year US Treasury Bonds Interest on NYS 4% General Obligation Bonds Interest on N.J. 3.75 % State Dormitory Bonds Interest on CD-Chase Bank Interest-GE 4.65% 20 year bonds Ordinary & Qualified Dividend Income - Per Fidelity Statement Amounts 6.500 8,500 5,500 4.000 6,500 20,000 Catherine received a "Debt Forgiveness" from American Express Company in the amount of $5,000: this concerned a prior charge from 2014 which has now been forgiven. Estimated Tax Payments: Mr & Mrs. Jones paid in estimated tax payments as follows: Federal: $35,000 Total paid. NYS: $2,500 per quarter $10,000 total (NYS all Paid in by 12/31/17) Unreimbursed Job Related Expenses Catherine attended a Research Conference at Harvard University during 2017. Her employer's practice is to reimburse their employees up to $2.000 per conference. Her total expenses incurred were 3,000 however, she was only reimbursed 2.000 as of December 31.2017. Group Term Life Insurance Columbia University provided $70,000 of group term life insurance to Catherine, who is not considered a key employee.(Hint: Don't forget to consider its effect on gross income). Retirement Contributions During 2017, Mr. Jones contributed 6.500 to his Traditional IRA and Catherine contributed S6.500 to her Roth IRA. NYS Tax Refund Mr. & Mrs. Jones received a 1099 for $17,000 representing a 2016 NYS Tax Refund which was received in 2017. The Jones's itemized their deductions in 2016 Capital Transactions Jerry sold the following securities during 2017: Company Shares Sellin Date sold Date Cost / Gain/Loss Acquired Tax Basis IBM2 2.000200,000 12/01/17 02/15/13 140.000 BA1.000 8,000 06/12/17 02/21/87 88.000 GE 1.000 50,000 12/08/17 06/15/17 30.000 AAPL 1.000 50,000 1115/17 020717 95.000 Sale of Principal Residence (see Note 4) Date of sale Date Acquired Selling Price Adj. Basis Exp of sale Commission 11/01/17 $1.400,000 900,000 34,000 66,000 Note 4-Sale of Residence: Mr.& Mrs. Jones lived in this house for many years. It was acquired in 1995 at a cost of $500,000 and it was their principal residence. Over the years they made major improvements to their home and all capital improvements are documented Mr.& Mrs. Jones wish to avail themselves of the S500,000 gain exclusion under IRC See 121 Itemized Deductions - Medical Medical Insurance premiums Long Term Care Insurance Peleton Exercise Rowing Machine (see Note 5) Doctor visits to MD's, & DDS Prescription Drugs Travel Expenses (see Note 6) Vitamins & Herbs for Mr. & Mrs. Smith Visits to local Gypsies and Fortune-Tellers (Mrs. Smith) Medical Insurance reimbursements $14,000 10,000 ($5.000 H&$5.000 W) 6,000 20,000 8,000 3.250 6.500 15.200 12.500 Note 5-Medical Expense: Robert has weak muscles in his lower back. His personal physician prescribed a Peleton Rowing Machine to try to alleviate the pain in his lower back Note 6-Travel Expenses: During Spring Break, Mrs. Jones took a trip to Miami after being diagnosed by her medical doctor with extreme stress and fatigue. She hopes that the warm weather will alleviate the stress and fatigue. Taxes Paid NYS & NYC Income Taxes NYS Sales Taxes on purchase of Boat &Personal Living expenses See W-2 information $15,200 28.000 Real Estate Taxes Personal Property Taxes (A NYS Personal Property Tax on Michael's Boat based on the weight of the boat.) 10,000 Interest Expense Interest on Home Mortgage Points on home mortgage Mortgage Insurance Premiums $20,000 6,000 4.500 Charitable Contributions Cash contributions to recognized public charities Prior year carry forward charitable contributions $25.000 5.000 Donations of Property: Paintings & Sculpture: (see Note 7) - Cost S 22,000 FMV Appraisal 30.000 Note 7 - Contribution of Property: The painting and sculpture were appraised by a reputable company. Robert believes that the estimated FMV should be $70,000 and not S30,000 as declared by the appraisal company Miscellaneous Deductions Tax Return Preparation ($1500-SCH C Law Practice: S1,000 Family Taxes) Legal fees - Estate Planning Safe Deposit Box at Chase used to safeguard stock certificates. $2.500 4.000 300 Gambling losses (see Note 8) $44.000 Note 8 -Gambling Losses: Mr. Jones enjoys gambling and he considers himself to be a "Doctor of the Craps Table". During 2017 Robert won $14.000 and incurred losses of $58.000. His net gambling losses amounted to $44,000. After his summer 2017 winning streak, he has been constantly losing Note 9- Child & Dependent Care Expenses and Child Care Credit: The Jones's want to claim "Child& Dependent Care Expenses" and the Child Care Credit. During 2017 the Smiths spent $8,000 on Child Care expenses for their son Adam. Please compute the amount of Child Care expenses allowed and Child Tax Credit allowed. Note10- Education Credits: The Jones's spent $65,000 for tuition at Cornell University and S20,000 for Campus Housing. Mr. Jones would like to take advantage of the Education Credits available for his son Dick. REQUIRED: 1) Prepare the following Tax Forms, Schedules, Worksheets and Notes for Mr. & Mrs. Jones For The Tax Year 2017: 1. Form 1040 2. Schedule A 3. Schedule B 4. Schedule C 5. Form SE (Use Long Form) 6. Schedule D and Form 8949 Robert &Catherine Jones 2017 Tax Return Information Family members and Dependents: The following is a list of information for Robert and Catherine Jones for the tax year 2017. Robert and Catherine are married and have three hildren Dick. Adam, and Roberta. They live at 345 Main Street, Great Neck, N.Y. 11425. Robert is an attorney and he is self-employed in his own law firm: Jones Legal Consultancy in Manhasset, NY. Catherine is a Professor (PHD) in Biology at Queens College (CUNY) in ens, NY 2017 Tax Information regarding the Jones's and their dependents' are as foll Name Social Security Age Other Facts Robert -Husband Catherine Wife 54 Lawyer and Self Employed 48 Professor of Biology at Queens College 224-32-2888 Full-time student at Cornell University Univ. Dick is very good student and he Dick (Son) 246-56-7788 21 earned $150,000 from rovalties. This is from his science inventions and pending research projects. Attends Public School in Great Neck. N.Y. He lives at home with Mom & Dad Adam (son) 456-78-8956 12 Roberta attends Columbia University Grad School. Roberta is married to Stan Smith Roberta (daughter)6 666-66-6666 24 and is supported by him. The Jones's regularly contribute to Roberta & Stan's support Retired Nurse and Catherine's Mother. She received $25.000 from her pension in Lorraine Smith (Catherine's mother) 777-77-7777 82 | 2017, The Jones's contributed over 50% of her support. She lives in New York City in her own apartment Robert's Uncle. He lives in NYC b himself. He receives 55% of his support from Robert& Catherine. He earned Edward James (Robert's Uncle) 888-88-8888 57 S4.100 in 2017 from a part-time job Tracy Smith 999-99-9999 47 Robert's ex-wife. See note below Robert's cousin. He earned $3.000 of income from part-time work. He lived with the Jones family and was supported Edward James 100-00-0000 19 by them for the entire vear Dependents: Ass ume that all other requirements are met by each potential dependent Robert's Previous Marriage: Robert is obligated to pay Alimony and Child Support as stated in the divorce decree to his ex-wife, Tracy Smith. He is required to make monthly payments of S650 and $500 respectively, for Child Support and Alimony. During 2017, Robert made total payments of S12,500 to Tracy. Robert and Tracy both agreed that the outstanding balance will be paid by 12/31/17, -)4% ayo The Jones's W-2 information is as follows: RobertCatherine Gross wages Federal Withholding Taxes NYS Withholding Taxes NYC Withholding Taxes 120.000 25.000 15.000 10.000 Interest and Dividends earned by the Smiths' and reported on Form 1099's are as follows: Tvpes of Interest/Dividends Interest on 3.75% 20 year US Treasury Bonds Interest on NYS 4% General Obligation Bonds Interest on N.J. 3.75 % State Dormitory Bonds Interest on CD-Chase Bank Interest-GE 4.65% 20 year bonds Ordinary & Qualified Dividend Income - Per Fidelity Statement Amounts 6.500 8,500 5,500 4.000 6,500 20,000 Catherine received a "Debt Forgiveness" from American Express Company in the amount of $5,000: this concerned a prior charge from 2014 which has now been forgiven. Estimated Tax Payments: Mr & Mrs. Jones paid in estimated tax payments as follows: Federal: $35,000 Total paid. NYS: $2,500 per quarter $10,000 total (NYS all Paid in by 12/31/17) Unreimbursed Job Related Expenses Catherine attended a Research Conference at Harvard University during 2017. Her employer's practice is to reimburse their employees up to $2.000 per conference. Her total expenses incurred were 3,000 however, she was only reimbursed 2.000 as of December 31.2017. Group Term Life Insurance Columbia University provided $70,000 of group term life insurance to Catherine, who is not considered a key employee.(Hint: Don't forget to consider its effect on gross income). Retirement Contributions During 2017, Mr. Jones contributed 6.500 to his Traditional IRA and Catherine contributed S6.500 to her Roth IRA. NYS Tax Refund Mr. & Mrs. Jones received a 1099 for $17,000 representing a 2016 NYS Tax Refund which was received in 2017. The Jones's itemized their deductions in 2016 Capital Transactions Jerry sold the following securities during 2017: Company Shares Sellin Date sold Date Cost / Gain/Loss Acquired Tax Basis IBM2 2.000200,000 12/01/17 02/15/13 140.000 BA1.000 8,000 06/12/17 02/21/87 88.000 GE 1.000 50,000 12/08/17 06/15/17 30.000 AAPL 1.000 50,000 1115/17 020717 95.000 Sale of Principal Residence (see Note 4) Date of sale Date Acquired Selling Price Adj. Basis Exp of sale Commission 11/01/17 $1.400,000 900,000 34,000 66,000 Note 4-Sale of Residence: Mr.& Mrs. Jones lived in this house for many years. It was acquired in 1995 at a cost of $500,000 and it was their principal residence. Over the years they made major improvements to their home and all capital improvements are documented Mr.& Mrs. Jones wish to avail themselves of the S500,000 gain exclusion under IRC See 121 Itemized Deductions - Medical Medical Insurance premiums Long Term Care Insurance Peleton Exercise Rowing Machine (see Note 5) Doctor visits to MD's, & DDS Prescription Drugs Travel Expenses (see Note 6) Vitamins & Herbs for Mr. & Mrs. Smith Visits to local Gypsies and Fortune-Tellers (Mrs. Smith) Medical Insurance reimbursements $14,000 10,000 ($5.000 H&$5.000 W) 6,000 20,000 8,000 3.250 6.500 15.200 12.500 Note 5-Medical Expense: Robert has weak muscles in his lower back. His personal physician prescribed a Peleton Rowing Machine to try to alleviate the pain in his lower back Note 6-Travel Expenses: During Spring Break, Mrs. Jones took a trip to Miami after being diagnosed by her medical doctor with extreme stress and fatigue. She hopes that the warm weather will alleviate the stress and fatigue. Taxes Paid NYS & NYC Income Taxes NYS Sales Taxes on purchase of Boat &Personal Living expenses See W-2 information $15,200 28.000 Real Estate Taxes Personal Property Taxes (A NYS Personal Property Tax on Michael's Boat based on the weight of the boat.) 10,000 Interest Expense Interest on Home Mortgage Points on home mortgage Mortgage Insurance Premiums $20,000 6,000 4.500 Charitable Contributions Cash contributions to recognized public charities Prior year carry forward charitable contributions $25.000 5.000 Donations of Property: Paintings & Sculpture: (see Note 7) - Cost S 22,000 FMV Appraisal 30.000 Note 7 - Contribution of Property: The painting and sculpture were appraised by a reputable company. Robert believes that the estimated FMV should be $70,000 and not S30,000 as declared by the appraisal company Miscellaneous Deductions Tax Return Preparation ($1500-SCH C Law Practice: S1,000 Family Taxes) Legal fees - Estate Planning Safe Deposit Box at Chase used to safeguard stock certificates. $2.500 4.000 300 Gambling losses (see Note 8) $44.000 Note 8 -Gambling Losses: Mr. Jones enjoys gambling and he considers himself to be a "Doctor of the Craps Table". During 2017 Robert won $14.000 and incurred losses of $58.000. His net gambling losses amounted to $44,000. After his summer 2017 winning streak, he has been constantly losing Note 9- Child & Dependent Care Expenses and Child Care Credit: The Jones's want to claim "Child& Dependent Care Expenses" and the Child Care Credit. During 2017 the Smiths spent $8,000 on Child Care expenses for their son Adam. Please compute the amount of Child Care expenses allowed and Child Tax Credit allowed. Note10- Education Credits: The Jones's spent $65,000 for tuition at Cornell University and S20,000 for Campus Housing. Mr. Jones would like to take advantage of the Education Credits available for his son Dick. REQUIRED: 1) Prepare the following Tax Forms, Schedules, Worksheets and Notes for Mr. & Mrs. Jones For The Tax Year 2017: 1. Form 1040 2. Schedule A 3. Schedule B 4. Schedule C 5. Form SE (Use Long Form) 6. Schedule D and Form 8949