Salaam sir,

You have helped me previously with a tax return problem, and now I have another problem set that builds upon the previous problem. I am wondering if you can take a look at the attached file and see if you can help me out again. I will offer the same as last time, $35 USD. Thanks.

1) The first file (ACCT 315 computerized tax return problem...) is the assignment that must be completed.

2) All other attached files are the previous problem set and its solutions that I have acquired from you, so you can add/ build/ reconstruct to formulize a solution for this current problem.

3) My score for the previous assignment was 87/100, which I am very satisfied with. Here are some of the suggestions that my professor made for the assignment:

Thank youMohammed, please review for the following corrections:

Form 1040: Lines? 8a, 9a, 13, 17, 21, 27, 28, 40, 42, 49. AGI is $149,388 refund is $3,944.

Schedule A: Lines 1, 3 ,5, 8, 16, 20, 21, 26

Schedule C: Lines 10, 17, 26, 27a

**If these corrections are too much, not to worry about. I am looking for minimum 80-85 score. Thank you again.

Form 1040 2015 (99) Department of the TreasuryInternal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 , 2015, ending IRS Use OnlyDo not write or staple in this space. See separate instructions. For the year Jan. 1-Dec. 31, 2015, or other tax year beginning Your first name and initial Last name , 20 Your social security number BILL QUIGLEY 3 5 4 6 9 2 2 5 0 NANCY QUIGLEY Spouse's social security number Last name If a joint return, spouse's first name and initial CHERRY ST GRAND RAPIDS Presidential Election Campaign Check only one box. Exemptions Foreign province/state/county 1 2 3 6a b Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a W-2, see instructions. Adjusted Gross Income child's name here. 5 Spouse . Dependents: . . . . . . . . . . . (2) Dependent's social security number Last name ADAM 3 0 7 5 ALLISON 3 0 6 1 AMELIA 3 8 6 5 ABBY 3 8 6 5 d Total number of exemptions claimed 0 5 4 4 . 4 8 8 0 2 1 2 1 . 6 1 8 9 . . . . . . . . . . . . . . . . . 1 2 9 0 . SON DAUGHTER DAUGHTER SON . . . . . . . . . . . Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . 8a b 9a Taxable interest. Attach Schedule B if required . Tax-exempt interest. Do not include on line 8a . Ordinary dividends. Attach Schedule B if required . . . . . . . } (4) if child under age 17 qualifying for child tax credit (see instructions) (3) Dependent's relationship to you 7 b Qualifying widow(er) with dependent child Yourself. If someone can claim you as a dependent, do not check box 6a . (1) First name Income Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this Married filing separately. Enter spouse's SSN above and full name here. c If more than four dependents, see instructions and check here 4 Single Married filing jointly (even if only one had income) . . . . . . . . 7 89500 . . . . . . 8a 5725 . . . . . . . 9a . . 2576 . . . . . . 10 11 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . Capital gain or (loss). Attach Schedule D if required. If not required, check here Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . 15a 16a 17 IRA distributions . 15a b Taxable amount . . . Pensions and annuities 16a b Taxable amount . . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 15b 16b 17 18 19 20a 18 19 20b 21 22 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . Unemployment compensation . . . . . . . . . . . . . . . . . Social security benefits 20a b Taxable amount . . . Other income. List type and amount LOTTERY Combine the amounts in the far right column for lines 7 through 21. This is your total income 23 Educator expenses 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 25 Health savings account deduction. Attach Form 8889 . 24 25 26 27 28 Moving expenses. Attach Form 3903 . . . . . . Deductible part of self-employment tax. Attach Schedule SE . Self-employed SEP, SIMPLE, and qualified plans . . 26 27 28 29 30 31a Self-employed health insurance deduction Penalty on early withdrawal of savings . . . . . . . . . . 32 33 34 Alimony paid b Recipient's SSN IRA deduction . . . . . . . Student loan interest deduction . . Tuition and fees. Attach Form 8917 . 29 30 31a . . . . . . . . . . . . 32 33 34 35 36 37 Domestic production activities deduction. Attach Form 8903 35 Add lines 23 through 35 . . . . . . . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . . 5 . 12 13 14 . Add numbers on lines above . . . . . 12 13 14 21 22 1 1 . 8b . . . . 3 Dependents on 6c not entered above . 10 11 . Boxes checked on 6a and 6b No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) Qualified dividends . . . . . . . . . . . 9b Taxable refunds, credits, or offsets of state and local income taxes Alimony received . . . . . . . . . . . . . . . . Make sure the SSN(s) above and on line 6c are correct. Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking Foreign postal code a box below will not change your tax or refund. You Spouse MI, 49508 Filing Status 455 City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name 4 4 8 3 9 2 9 8 5 Apt. no. Home address (number and street). If you have a P.O. box, see instructions. 29578 3000 9750 32000 169553 23 . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. . . . . . . . . . 36 37 Cat. No. 11320B 169553 Form 1040 (2015) Page 2 Form 1040 (2015) 38 Amount from line 37 (adjusted gross income) Tax and Credits 39a Check if: Standard Deduction for People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. All others: Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,250 Other Taxes Payments If you have a qualifying child, attach Schedule EIC. Sign Here Paid Preparer Use Only . You were born before January 2, 1951, Spouse was born before January 2, 1951, . . Blind. Blind. . } . . . . . . 39b 42 43 Exemptions. If line 38 is $154,950 or less, multiply $4,000 by the number on line 6d. Otherwise, see instructions Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . Form 4972 c Tax (see instructions). Check if any from: a Form(s) 8814 b 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Alternative minimum tax (see instructions). Attach Form 6251 . Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . . 48 . . . . . . 52 Residential energy credits. Attach Form 5695 . . . . 53 3800 b 8801 c Other credits from Form: a 54 Add lines 48 through 54. These are your total credits . . . . . Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . . . . . . . . Self-employment tax. Attach Schedule SE . . . . . . . 8919 . . Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . . . . . . . . . . . . 58 59 60a Unreported social security and Medicare tax from Form: a b 61 First-time homebuyer credit repayment. Attach Form 5405 if required 62 63 Form 8960 c Taxes from: a Form 8959 b Add lines 56 through 62. This is your total tax . . 67 68 69 70 71 72 75 76a . . . Household employment taxes from Schedule H . . . . . . . . . b 4137 . . . . . . . . . . . . . . . . . . . Instructions; enter code(s) . . . . . . . . . . . 64 Federal income tax withheld from Forms W-2 and 1099 . . 11480 2015 estimated tax payments and amount applied from 2014 return 65 6000 Earned income credit (EIC) . . . . . . . . . . 66a Nontaxable combat pay election 66b Additional child tax credit. Attach Schedule 8812 . . . . 67 American opportunity credit from Form 8863, line 8 . Net premium tax credit. Attach Form 8962 . . . . Amount paid with request for extension to file . . . . . . . . . 68 69 70 . 71 72 Credits from Form: a 2439 b Reserved c 8885 d 73 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . Excess social security and tier 1 RRTA tax withheld Credit for federal tax on fuels. Attach Form 4136 . . . . . . 40 41 42 154463 20000 43 134463 44 45 46 47 23358 15090 23358 55 56 57 23358 58 59 60a 60b Full-year coverage Health care: individual responsibility (see instructions) 169553 49 50 51 Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 19 . . . . . Retirement savings contributions credit. Attach Form 8880 Child tax credit. Attach Schedule 8812, if required . . . . 64 65 66a b . . . . Add lines 44, 45, and 46 . . . . . . . Foreign tax credit. Attach Form 1116 if required . 38 Total boxes checked 39a . . 61 62 63 . . . . . . If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 74 17480 75 Amount of line 75 you want refunded to you. If Form 8888 is attached, check here . 76a c Type: Routing number Checking Savings Account number Amount of line 75 you want applied to your 2016 estimated tax 77 77 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions 78 79 Estimated tax penalty (see instructions) . . . . . . . 79 Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. b d 5878 No Personal identification number (PIN) Phone no. Designee's name Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) PTIN Check if self-employed Joint return? See instructions. Keep a copy for your records. . Itemized deductions (from Schedule A) or your standard deduction (see left margin) Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . Third Party Designee . 40 41 Direct deposit? See instructions. Amount You Owe . If your spouse itemizes on a separate return or you were a dual-status alien, check here b 73 74 Refund { . Print/Type preparer's name Firm's name Preparer's signature Date Firm's EIN Firm's address Phone no. www.irs.gov/form1040 Form 1040 (2015) Davenport University Federal Taxation I ACCT 315/715 Instructor: TAX PREPARATION SOFTWARE T A X R E T U R N P R O B L E M *********************************************************** REQUIREMENT 1. Prepare a 2015 tax return using H&R BLOCK Tax Cut or other tax preparation software 2. Write a tax memo/letter advising the Quigleys how to improve their tax position. *********************************************************** Use the same information as the Manual problem subject to the following revisions: The Quigleys updated their exterior windows in their primary residence last year. The new windows exceed the energy efficiency criteria established by the International Energy Conservation Code (IECC) for the climate zone. They have brought the manufacturer's certification along. The cost of the new windows total $3,700. Bill's Bargain Books sold $189,000 of merchandise. They had a beginning inventory of $56,800 and an ending inventory of $92,400. All other expenses/transactions remained the same except Bill does not elect to take 179 expensing or additional first year depreciation on his office furniture purchase; but does elect to take the 179 deduction for the computer system. He made quarterly estimated Federal income tax payments of $600 on January, April, June and September, 2015 ($2,400 in total payments). Michigan estimated income tax payments were $200 per quarter or $800 for the year. The Quigley's sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2000. The stock was worth $6 per share in January but had had dropped to $4 per share on September 3 when the Quigleys sold the stock on that date. They had been given the stock by Bill's father, who paid $14 per share for it in 1972. Its value at the date of gift was $17.50 per share. No gift tax was paid on the gift. (The Quigley's basis is $14 per share.) Bill is contemplating the Affordable Health Care Act provisions and the effect they will have on his business operations. He wonders how to keep his business profitable, how to best take advantage of available tax deductions and credits and how they can plan more efficiently to minimize their tax burden while increasing their wealth. What advice can you offer the Quigleys on how they can improve their current tax situation and improve their tax planning process for next year? Compose a 2 page tax memo or a client letter to the Quigleys enumerating all of your tax recommendations and the reasons why the proposed changes make sense. ACCT 315/715 FALL 16 Tax Preparation Software Problem Davenport University Federal Taxation I ACCT 315/715 Instructor: TAXRETURN PROBLEM *********************************************************** REQUIREMENT Prepare the Federal Income Tax return for Bill and Nancy Quigley for the year ended 2015 *********************************************************** Bill and Nancy Quigley are married and file a joint return. Bill was born on 3/17/1960 and Nancy was born on 6/19/1964. Bill owns a used book store (self-employed, Sch. C), and Nancy is a college professor. Bill's Social Security number is 354-69-2250, and Nancy's is 448-39-2985. The Quigleys live at 455 Cherry St, Grand Rapids, MI 49508. Their phone number is: 616-584-5621. The Quigleys each designate that $3 is to go to the Presidential Election Campaign Fund. Bill has one son, Adam (SS# 307-50-4861; BD 08/04/1992), from a previous marriage. Adam is age 23 and a full-time law student at Wayne State University. He worked part-time during the year earning $3,590, which he spent for his own support. In addition, he received a $5,000 scholarship from Wayne State University. Adam lived at home while not in school and Bill and Nancy provided $5,800 toward Adam's support. They also provided over half the support of Nancy's daughter, Allison (SS# 306-15-8012, BD 05/20/1997), from a previous marriage. Allison is age 19 and a full- time student at Davenport University. Allison worked part-time during the year, earning $2,900. She filed a joint return with her husband Roger, who earned $12,700 during the year. Bill and Nancy also have twins, Amelia (SS 386-54-2189; BD 02/18/2005) and Abby (SS 386-542190), age ten, who live with them. Bill's mother, Darlene, (SS# 101-52-1317), was born on 8/26/1930. Darlene is blind and lives with the Quigleys. The Quigleys pay $5,500 per year for dependent care expenses for Darlene, so they can both be employed. The dependent care provider is Senior Care, 1215 Magna Carta, Grand Rapids, MI, 49503 (EIN# 38-6451321). In addition, Bill and his brother Joe each incurred ACCT 315/715 -FALL 16 Page 1 of 4 out-of-pocket costs of $2,950 for Darlene's support. Also, Bill provided lodging for Darlene during the entire year. Bill estimates the fair rental value of the lodging is $6,000. Darlene received $9,100 in Social Security Benefits and $650 of interest during the year, all of which she put in the bank. Joe is willing to do whatever is necessary to enable Bill to claim Darlene as a dependent. Nancy is a professor at Kalamazoo Valley Community College (#38-7854123; 6767 W O Ave, Kalamazoo, MI 49003), where she earned $ 89,500. The University withheld Federal income tax of $11,480, state income tax of $3,497, Grand Rapids city income tax of $785, and the correct amount of FICA. Her employer pays for health care for the entire family except for Allison who bought healthcare in the marketplace and has received a form 1095-A. The Quigley's received $3,975 of interest from Wauwautosa Bank on a joint account. They received interest of $1,750 on City of Denver bonds they bought in January. Bill received a dividend of $920 on General Bicycle Corporation stock he owns. Nancy received a dividend of $1475 on Acme Clothing Corporation stock she owns. General Bicycle and Acme Clothing are both domestic Corporations. Bill and Nancy received a dividend of $181 on jointly owned stock in Maple Leaf Brewing Company, a Canadian corporation. All of the securities were held with a Grand Rapids brokerage firm and are \"qualified dividends\". In July, a severe storm came through the area and did considerable damage to the summer home (382 Flying Dutchman, Holland, MI 49423) that they had purchased for $96,000 two years earlier. Fair market value before the storm on the building was $131,000 and was valued at $45,000. Insurance recovery was $75,000. Bill's business, Bill's Bargain Books, is located at 645 Ball Ave., Grand Rapids, MI. 49503, and his employer identification number is #38-6478224. Bill's sales for the year were $259,157. He uses the cash method of accounting for tax purposes and his business expenses on the cash basis are as follows: Advertising.................................... $ 2,400 Bank service charges........................... 145 Professional dues.............................. 500 Professional journals.......................... 360 Contributions to employee benefit plans..... 8,800 Insurance on office contents................... 1,900 Accounting services............................ 3,840 Miscellaneous office expense................... 346 Store and equipment rental......................... 36,000 Utilities and telephone........................ 2,850 Wages.......................................... 40,450 Payroll taxes.................................. 3,417 Purchases............................... 55,000 Beginning Inventory................... 77,900 Ending Inventory........................ 41,300 ACCT 315/715 -FALL 16 Page 2 of 4 Bill put 13,297 business miles on his truck this year and 12,916 personal miles (total miles= 29,652). He uses the automatic mileage method. Bill purchased the truck July 11, 2012 and did not take any Sec 179 Immediate Expensing. He does keep written records of his mileage. June 16, 2015 Bill purchased a new business computer information system to track inventory and customers, etc., the cost was $8,000. On the same date he spent $21,325 for furniture to refurbish his office. He did elect Sec.179 Immediate Expensing, for these items. Nancy's mother, Carol, died on May 2, 2003, leaving Nancy her entire estate. Included in the estate was Carol's residence at 1541 Lighthouse Dr., Holland, MI 49424. Carol's basis in the residence was $26,000. Fair market value of the residence on May 2, 2003 was $117,000 (this is Nancy's basis). Nancy began renting the house January 1, 2004. In 2015 the house was rented the entire year at $1,600 a month. The house is depreciated using the MACRS straight-line method for residential real estate with zero salvage value. In computing depreciation, they allocate a value of $29,000 to the lot on which the house is located. They incurred the following expenses during the year on the rental property: Property insurance..................... $1,300 Property taxes......................... 5,200 Maintenance............................ 1,400 Management fees......................... 1,750 The Quigleys sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2000. The stock was worth $50 per share in January. By September 3, its value had dropped to $36 per share, and the Quigleys sold the stock on that date. They had been given the stock by Bill's father, who had paid $11 per share for it in 1972. Its value at the date of gift was $16.50 per share. No gift tax was paid on the gift. (The Quigley's basis would be $11 per share.) On December 30, 2015 as he was leaving the grocery store, Bill found a Michigan lottery ticket someone had apparently dropped. On January 3, 2016 when the lottery held its weekly drawing, Bill discovered he had won $32,000, which he received on January 8. Nancy is required by her employer to visit several high schools in the Battle Creek- Lansing area to evaluate KVCC students who are doing their medical rotations. She also spent $673 on meals taking out the students afterwards to discuss how the rotations were progressing. She is not reimbursed by KVCC for the expenses she incurs in doing this. During the year, she drove her personal automobile 8,200 miles in fulfilling this obligation. Nancy purchased her car in April of 2013, and put a total of 26,900 miles on it in 2015. All other miles driven were personal. Nancy did not keep detailed records of her gas and oil purchases and had no major repairs on the car this year. She does journal her business mileage. Since Nancy must travel out of town, the Quigleys take their twins, Amelia and Abby to daycare. Their daycare provider is Betty Bop Babies at 324 Sybil St, Grand Rapids, MI 49508. The EIN ACCT 315/715 -FALL 16 Page 3 of 4 number is #38-2546946. The Quigleys received a receipt for $6,642 in daycare costs for 2015. The cost was evenly divided for the care for the twins. Bill contributed $5,500 to Self-Employed SEP Plan on December 30. Nancy is covered by a KVCC retirement plan. Bill and Nancy have given you a file containing the following receipts for out-of-pocket expenditures during the year: Medicines and drugs.................... $ 886 Doctors and hospital bills............. 5,348 Penalty for underpayment of last year's state income tax....................... 544 Real estate taxes on personal residence 5,962 Michigan vehicle registration fees 321 State sales tax on new furniture....... 480 State sales tax on new sailboat........ 675 Interest on Home mortgage (paid to Home Bank)........................... 10,650 Interest on credit cards............... 735 Cash contributions to Hope Church...... 9,600 Payroll deductions for Nancy's contribution to the United Way.................... 500 Professional dues (Nancy).............. 325 Professional subscriptions (Nancy)..... 225 Fee for preparation of last year's 1040 950 On the 15th of January, April, June and September the Quigley's made quarterly estimated Federal income tax payments of $ 1,500 ($6,000 total payments). They made estimated payments for state income tax of $1,000 for the year. All Michigan estimated payments were made in 2015. ACCT 315/715 -FALL 16 Page 4 of 4 ACCT 315/715 -FALL 16 Page 5 of 4 ACCT 315/715 -FALL 16 Page 6 of 4 ACCT 315/715 -FALL 16 Page 7 of 4 ACCT 315/715 -FALL 16 Page 8 of 4 SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99) OMB No. 1545-0074 Capital Gains and Losses Attachment Sequence No. 12 Your social security number Name(s) shown on return BILL AND NANCY QUIGLEY Part I 2015 Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. 354-69-2250 Short-Term Capital Gains and LossesAssets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . 2 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . 3 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . Part II 4 5 6 ( ) 7 Long-Term Capital Gains and LossesAssets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . (d) Proceeds (sales price) 36000 (e) Cost (or other basis) (g) (h) Gain or (loss) Adjustments Subtract column (e) to gain or loss from from column (d) and Form(s) 8949, Part II, combine the result with line 2, column (g) column (g) 33000 3000 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . 9 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . 10 Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H 14 ( 15 ) 3000 Schedule D (Form 1040) 2015 Page 2 Schedule D (Form 1040) 2015 Part III 16 Summary Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . 16 3000 If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions 18 19 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 . . Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) } . . . . . . . . . . . . . . . 21 ( ) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). No. Complete the rest of Form 1040 or Form 1040NR. Schedule D (Form 1040) 2015 Form 4684 Casualties and Thefts Department of the Treasury Internal Revenue Service Name(s) shown on tax return OMB No. 1545-0177 2016 Information about Form 4684 and its separate instructions is at www.irs.gov/form4684. Attach to your tax return. Use a separate Form 4684 for each casualty or theft. Attachment Sequence No. 26 Identifying number BILL AND NANCY QUIGLEY 354-69-2250 SECTION APersonal Use Property (Use this section to report casualties and thefts of property not used in a trade or business or for income-producing purposes.) 1 Description of properties (show type, location, and date acquired for each property). Use a separate line for each property lost or damaged from the same casualty or theft. Property A SUMMER HOUSE, 382, FLYING DUTCHMAN, HOLLAND, MI 49423 Property B Property C Property D Properties A 2 Cost or other basis of each property . . . . . . 3 Insurance or other reimbursement (whether or not you filed a claim) (see instructions) . . . . . . . . Note: If line 2 is more than line 3, skip line 4. 4 Gain from casualty or theft. If line 3 is more than line 2, enter the difference here and skip lines 5 through 9 for that column. See instructions if line 3 includes insurance or other reimbursement you did not claim, or you received payment for your loss in a later tax year . . 5 Fair market value before casualty or theft . . . . 6 Fair market value after casualty or theft . . . . . 7 Subtract line 6 from line 5 . . . . . . . . . 8 Enter the smaller of line 2 or line 7 . . . . . . 9 Subtract line 3 from line 8. If zero or less, enter -0- . . B 2 96000 3 75000 C D 4 5 6 7 8 9 131000 45000 86000 86000 11000 10 Casualty or theft loss. Add the amounts on line 9 in columns A through D . . 11 Enter the smaller of line 10 or $100 . . . . . . . . . . . . . 12 Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 12 11000 100 10900 Caution: Use only one Form 4684 for lines 13 through 18. 13 Add the amounts on line 12 of all Forms 4684 . . . . 14 Add the amounts on line 4 of all Forms 4684. . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 10900 0 . . . . . . . . . . . . . . . . . . . . . . . . . 15 If line 14 is more than line 13, enter the difference here and on Schedule D. Do not complete the rest of this section (see instructions). If line 14 is less than line 13, enter -0- here and go to line 16. If line 14 is equal to line 13, enter -0- here. Do not complete the rest of this section. 16 If line 14 is less than line 13, enter the difference . . . . . . . . . . . } 15 . 16 10900 17 Enter 10% of your adjusted gross income from Form 1040, line 38, or Form 1040NR, line 37. Estates and trusts, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 16955 18 Subtract line 17 from line 16. If zero or less, enter -0-. Also enter the result on Schedule A (Form 1040), line 20, or Form 1040NR, Schedule A, line 6. Estates and trusts, enter the result on the \"Other deductions\" line of your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 For Paperwork Reduction Act Notice, see instructions. . . Cat. No. 12997O 6055 Form 4684 (2016) Page 2 Attachment Sequence No. 26 Form 4684 (2016) Identifying number Name(s) shown on tax return. Do not enter name and identifying number if shown on other side. SECTION BBusiness and Income-Producing Property Casualty or Theft Gain or Loss (Use a separate Part l for each casualty or theft.) Part I 19 Description of properties (show type, location, and date acquired for each property). Use a separate line for each property lost or damaged from the same casualty or theft. See instructions if claiming a loss due to a Ponzi-type investment scheme and Section C is not completed. Property A Property B Property C Property D Properties A 20 Cost or adjusted basis of each property . . . . 21 Insurance or other reimbursement (whether or not you filed a claim). See the instructions for line 3 . . . . 21 Note: If line 20 is more than line 21, skip line 22. Gain from casualty or theft. If line 21 is more than line 20, enter the difference here and on line 29 or line 34, column (c), except as provided in the instructions for line 33. Also, skip lines 23 through 27 for that column. See the instructions for line 4 if line 21 includes insurance or other reimbursement you did not claim, or you received payment for your loss in a later tax year Fair market value before casualty or theft . . . . Fair market value after casualty or theft . . . . . Subtract line 24 from line 23 . . . . . . . . Enter the smaller of line 20 or line 25 . . . . . 22 23 24 25 26 22 23 24 25 26 B C D 20 . Note: If the property was totally destroyed by casualty or lost from theft, enter on line 26 the amount from line 20. 27 Subtract line 21 from line 26. If zero or less, enter -027 28 Casualty or theft loss. Add the amounts on line 27. Enter the total here and on line 29 or line 34 (see instructions) Part II Summary of Gains and Losses (from separate Parts l) 28 (b) Losses from casualties or thefts (a) Identify casualty or theft (c) Gains from casualties or thefts includible in income (ii) Incomeproducing and employee property (i) Trade, business, rental or royalty property Casualty or Theft of Property Held One Year or Less 29 ( ) ( ) 30 Totals. Add the amounts on line 29 ( ( ) ( ) ( ) ) . . . . . . . . . . . . 30 31 Combine line 30, columns (b)(i) and (c). Enter the net gain or (loss) here and on Form 4797, line 14. If Form 4797 is not otherwise required, see instructions . . . . . . . . . . . . . . . . . . . . . . . 31 32 Enter the amount from line 30, column (b)(ii) here. Individuals, enter the amount from income-producing property on Schedule A (Form 1040), line 28, or Form 1040NR, Schedule A, line 14, and enter the amount from property used as an employee on Schedule A (Form 1040), line 23, or Form 1040NR, Schedule A, line 9. Estates and trusts, partnerships, and S corporations, see instructions 32 Casualty or Theft of Property Held More Than One Year 33 Casualty or theft gains from Form 4797, line 32 . . . . . . . . . . . . . . . . . . . . . . . . . ( ) ( 34 ( ) ( 35 Total losses. Add amounts on line 34, columns (b)(i) and (b)(ii) . . . . . 35 ( ) ) ) ( 36 Total gains. Add lines 33 and 34, column (c) . . . . . . . . . . . . . . . . . . . . . . 37 Add amounts on line 35, columns (b)(i) and (b)(ii) . . . . . . . . . . . . . . . . . . . . 38 If the loss on line 37 is more than the gain on line 36: a Combine line 35, column (b)(i) and line 36, and enter the net gain or (loss) here. Partnerships (except electing large partnerships) and S corporations, see the note below. All others, enter this amount on Form 4797, line 14. If Form 4797 is not otherwise required, see instructions . . . . . . . . . . . . . . . . . . . . . b Enter the amount from line 35, column (b)(ii) here. Individuals, enter the amount from income-producing property on Schedule A (Form 1040), line 28, or Form 1040NR, Schedule A, line 14, and enter the amount from property used as an employee on Schedule A (Form 1040), line 23, or Form 1040NR, Schedule A, line 9. Estates and trusts, enter on the \"Other deductions\" line of your tax return. Partnerships (except electing large partnerships) and S corporations, see the note below. Electing large partnerships, enter on Form 1065-B, Part II, line 11 . . . . . . . . . 39 If the loss on line 37 is less than or equal to the gain on line 36, combine lines 36 and 37 and enter here. Partnerships (except electing large partnerships), see the note below. All others, enter this amount on Form 4797, line 3 . . . . Note: Partnerships, enter the amount from line 38a, 38b, or line 39 on Form 1065, Schedule K, line 11. S corporations, enter the amount from line 38a or 38b on Form 1120S, Schedule K, line 10. 33 ) 36 37 38a 38b 39 Form 4684 (2016) Page 3 Form 4684 (2016) Identifying number Name(s) shown on tax return SECTION CTheft Loss Deduction for Ponzi-Type Investment Scheme Using the Procedures in Revenue Procedure 2009-20 (Complete this section in lieu of Appendix A in Revenue Procedure 2009-20. See instructions.) Computation of Deduction Part I 40 Initial investment . . . . . . . . . 41 Subsequent investments (see instructions) . . . . . . . . . . . . . . . . . . . . . 40 41 42 Income reported on your tax returns for tax years prior to the discovery year (see instructions) . . . . . . . . . . . . . . . . . . . 43 Add lines 40, 41, and 42 . . . . . . . . . . . . . 44 Withdrawals for all years (see instructions) . . . . . . . . 45 Subtract line 44 from line 43. This is your total qualified investment . . . . . . . 42 . . . . . 43 . . . . . . . . . . 44 45 46 Enter .95 (95%) if you have no potential third-party recovery. Enter .75 (75%) if you have potential third-party recovery . . . . . . . . . . . . . . . 46 47 Multiply line 46 by line 45 . 48 Actual recovery . . . . . . . . . . 47 48 49 Potential insurance/Securities Investor Protection Corporation (SIPC) recovery 50 Add lines 48 and 49. This is your total recovery . . . . . . . . . . . . . . 49 50 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 50 from line 47. This is your deductible theft loss. Include this amount on line 28 of Section B, Part I. Do not complete lines 19-27 for this loss. Then complete Section B, Part II . . . . . . . . . . . . . . . . . . . . . Part II Required Statements and Declarations (See instructions.) . 51 I am claiming a theft loss deduction pursuant to Revenue Procedure 2009-20 from a specified fraudulent arrangement conducted by the following individual or entity. Name of individual or entity Taxpayer identification number (if known) Address I have written documentation to support the amounts reported in Part I of this Section C. I am a qualified investor as defined in section 4.03 of Revenue Procedure 2009-20. If I have determined the amount of my theft loss deduction using .95 on line 46 above, I declare that I have not pursued and do not intend to pursue any potential third-party recovery, as that term is defined in section 4.10 of Revenue Procedure 2009-20. I agree to comply with the conditions and agreements set forth in Revenue Procedure 2009-20 and this Section C. If I have already filed a return or amended return that does not satisfy the conditions in section 6.02 of Revenue Procedure 2009-20, I agree to all adjustments or actions that are necessary to comply with those conditions. The tax year(s) for which I filed the return(s) or amended return(s) and the date(s) on which they were filed are as follows: Form 4684 (2016) SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040A or 1040) Department of the Treasury Internal Revenue Service (99) Information Attach to Form 1040A or 1040. about Schedule B and its instructions is at www.irs.gov/scheduleb. Name(s) shown on return 2015 Attachment Sequence No. 08 Your social security number BILL AND NANCY QUIGLEY Part I 1 Interest Part II Amount WAUWAUTOTSA BANK CITY DENVOR BONDS (See instructions on back and the instructions for Form 1040A, or Form 1040, line 8a.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 354-69-2250 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. Also, show that buyer's social security number and address 3975 1750 1 2 3 Add the amounts on line 1 . . . . . . . . . . Excludable interest on series EE and I U.S. savings Attach Form 8815 . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and 1040, line 8a . . . . . . . . . . . . . . Note: If line 4 is over $1,500, you must complete Part III. List name of payer 5 . . . . . . . . bonds issued after 1989. . . . . . . . . on Form 1040A, or Form . . . . . . . . 2 5725 3 0 4 5725 Amount Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Part III Foreign Accounts and Trusts (See instructions on back.) 5 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 6 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . Note: If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. 7a Yes No At any time during 2015, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . . . . . . b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located 8 During 2015, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If \"Yes,\" you may have to file Form 3520. See instructions on back . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2015 Page 2 Schedule B (Form 1040A or 1040) 2015 General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Schedule B (Form 1040A or 1040) and its instructions, such as legislation enacted after they were published, go to www.irs.gov/scheduleb. Purpose of Form Use Schedule B if any of the following applies. You had over $1,500 of taxable interest or ordinary dividends. You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. You have accrued interest from a bond. You are reporting original issue discount (OID) in an amount less than the amount shown on Form 1099-OID. You are reducing your interest income on a bond by the amount of amortizable bond premium. You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. You received interest or ordinary dividends as a nominee. You had a financial interest in, or signature authority over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and trusts. Specific Instructions You can list more than one payer on each entry space for lines 1 and 5, but be sure to clearly show the amount paid next to the payer's name. Add the separate amounts paid by the payers listed on an entry space and enter the total in the \"Amount\" column. If you still need more space, attach separate statements that are the same size as the printed schedule. Use the same format as lines 1 and 5, but show your totals on Schedule B. Be sure to put your name and social security number (SSN) on the statements and attach them at the end of your return. TIP Part I. Interest Line 1. Report on line 1 all of your taxable interest. Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. Include interest from series EE, H, HH, and I U.S. savings bonds. Also include any accrued market discount that is includible in income. List each payer's name and show the amount. Do not report on this line any tax-exempt interest from box 8 or box 9 of Form 1099-INT. Instead, report the amount from box 8 on line 8b of Form 1040A or 1040. If an amount is shown in box 9 of Form 1099-INT, you generally must report it on line 12 of Form 6251. See the Instructions for Form 6251 for more details. For more information on market discount and other investment income see Pub. 550. Seller-financed mortgages. If you sold your home or other property and the buyer used the property as a personal residence, list first any interest the buyer paid you on a mortgage or other form of seller financing. Be sure to show the buyer's name, address, and SSN. You must also let the buyer know your SSN. If you do not show the buyer's name, address, and SSN, or let the buyer know your SSN, you may have to pay a $50 penalty. Nominees. If you received a Form 1099-INT that includes interest you received as a nominee (that is, in your name, but the interest actually belongs to someone else), report the total on line 1. Do this even if you later distributed some or all of this income to others. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, enter "Nominee Distribution" and show the total interest you received as a nominee. Subtract this amount from the subtotal and enter the result on line 2. If you received interest as a nominee, you must give the actual owner a Form 1099-INT unless the owner is your spouse. You must also file a Form 1096 and a Form 1099-INT with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Forms 1099-INT and 1099-OID. TIP Accrued interest. When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller. If you received a Form 1099 for interest as a purchaser of a bond with accrued interest, follow the rules earlier under Nominees to see how to report the accrued interest. But identify the amount to be subtracted as \"Accrued Interest.\" Original issue discount (OID). If you are reporting OID in an amount less than the amount shown on Form 1099-OID, follow the rules earlier under Nominees to see how to report the OID. But identify the amount to be subtracted as \"OID Adjustment.\" Amortizable bond premium. If you are reducing your interest income on a bond by the amount of amortizable bond premium, follow the rules earlier under Nominees to see how to report the interest. But identify the amount to be subtracted as \"ABP Adjustment.\" Line 3. If, during 2015, you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher education expenses for yourself, your spouse, or your dependents, you may be able to exclude part or all of the interest on those bonds. See Form 8815 for details. Part II. Ordinary Dividends You may have to file Form 5471 if, in 2015, you were an officer or director of a foreign corporation. You may also have to file Form 5471 if, in 2015, you owned 10% or more of the total (a) value of a foreign corporation's stock, or (b) combined voting power of all classes of a foreign corporation's stock with voting rights. For details, see Form 5471 and its instructions. TIP Line 5. Report on line 5 all of your ordinary dividends. This amount should be shown in box 1a of your Forms 1099-DIV or substitute statements. List each payer's name and show the amount. Nominees. If you received a Form 1099-DIV that includes ordinary dividends you received as a nominee (that is, in your name, but the ordinary dividends actually belong to someone else), report the total on line 5. Do this even if you later distributed some or all of this income to others. Under your last entry on line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal, enter \"Nominee Distribution\" and show the total ordinary dividends you received as a nominee. Subtract this amount from the subtotal and enter the result on line 6. If you received dividends as a nominee, you must give the actual owner a Form 1099-DIV unless the owner is your spouse. You must also file a Form 1096 and a Form 1099-DIV with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Form 1099-DIV. TIP Part III. Foreign Accounts and Trusts Regardless of whether you are required to file FinCEN Form 114 (FBAR), you may be required to file Form 8938, Statement of Specified Foreign Financial Assets, with your income tax return. Failure to file Form 8938 may result in penalties and extension of the statute of limitations. See www.irs.gov/form8938 for more information. TIP Line 7a-Question 1. Check the \"Yes\" box if at any time during 2015 you had a financial interest in or signature authority over a financial account located in a foreign country. See the definitions that follow. Check the \"Yes\" box even if you are not required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Financial account. A financial account includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value, and shares in a mutual fund or similar pooled fund (that is, a fund that is available to the general public with a regular net asset value determination and regular redemptions). Financial account located in a foreign country. A financial account is located in a foreign country if the account is physically located outside of the United States. For example, an account maintained with a branch of a United States bank that is physically located outside of the United States is a foreign financial account. An account maintained with a branch of a foreign bank that is physically located in the United States is not a foreign financial account. Signature authority. Signature authority is the authority of an individual (alone or in conjunction with another individual) to control the disposition of assets held in a foreign financial account by direct communication (whether in writing or otherwise) to the bank or other financial institution that maintains the financial account. See the FinCEN Form 114 instructions for exceptions. Do not consider the exceptions relating to signature authority in answering Question 1 on line 7a. Other definitions. For definitions of \"financial interest,\" \"United States,\" and other relevant terms, see the instructions for FinCEN Form 114. Line 7a-Question 2. See FinCEN Form 114 and its instructions to determine whether you must file the form. Check the \"Yes\" box if you are required to file the form; check the \"No\" box if you are not required to file the form. If you checked the \"Yes\" box to Question 2 on line 7a, FinCEN Form 114 must be electronically filed with the Financial Crimes Enforcement Network (FinCEN) at the following website: http://bsaefiling. fincen.treas.gov/main.html. Do not attach FinCEN Form 114 to your tax return. To be considered timely, FinCEN Form 114 must be received by June 30, 2016. ! If you are required to file FinCEN Form 114 but do not properly do so, you may have to pay a civil penalty up to $10,000. A person who willfully fails to CAUTION report an account or provide account identifying information may be subject to a civil penalty equal to the greater of $100,000 or 50 percent of the balance in the account at the time of the violation. Willful violations may also be subject to criminal penalties. Line 7b. If you are required to file FinCEN Form 114, enter the name of the foreign country or countries in the space provided on line 7b. Attach a separate statement if you need more space. Line 8. If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash or marketable securities generally is considered to be a distribution. See Form 3520 for details. If you were the grantor of, or transferor to, a foreign trust that existed during 2015, you may have to file Form 3520. Do not attach Form 3520 to Form 1040. Instead, file it at the address shown in its instructions. If you were treated as the owner of a foreign trust under the grantor trust rules, you are also responsible for ensuring that the foreign trust files Form 3520-A. Form 3520-A is due on March 15, 2016, for a calendar year trust. See the instructions for Form 3520-A for more details. SCHEDULE A (Form 1040) OMB No. 1545-0074 Itemized Deductions Department of the Treasury Internal Revenue Service (99) Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. Attach to Form 1040. Name(s) shown on Form 1040 2015 Attachment Sequence No. 07 Your social security number BILL AND NANCY QUIGLEY Medical and Dental Expenses Taxes You Paid 1 2 3 4 5 6 7 8 Interest You Paid 9 10 11 Note: Your mortgage interest deduction may be limited (see instructions). 354-69-2250 Caution: Do not include expenses reimbursed or paid by others. Medical and dental expenses (see instructions) . . . . . 1 Enter amount from Form 1040, line 38 2 169553 Multiply line 2 by 10% (.10). But if either you or your spouse was 3 born before January 2, 1951, multiply line 2 by 7.5% (.075) instead Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . State and local (check only one box): a Income taxes, or . . . . . . . . . . . 5 b General sales taxes Real estate taxes (see instructions) . . . . . . . . . 6 Personal property taxes . . . . . . . . . . . . . 7 Other taxes. List type and amount 8 Add lines 5 through 8 . . . . . . . . . . . . . . . . Home mortgage interest and points reported to you on Form 1098 10 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 16955 . . . . } 11 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . 12 13 Mortgage insurance premiums (see instructions) . . . . . 13 14 Investment interest. Attach Form 4952 if required. (See instructions.) 14 15 Add lines 10 through 14 . . . . . . . . . . . . . . . Gifts to 16 Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . 16 Charity 17 Other than by cash or check. If any gift of $250 or more, see If you made a gift and got a instructions. You must attach Form 8283 if over $500 . . . 17 benefit for it, 18 Carryover from prior year . . . . . . . . . . . . 18 see instructions. 19 Add lines 16 through 18 . . . . . . . . . . . . . . . Casualty and Theft Losses 1234 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . 4 0 9 21724 15 10650 15762 5962 . . . . . . 10650 . . . . . . 9600 . . . . . . 19 9600 . . . . . . 20 6055 27 2272 Job Expenses 21 Unreimbursed employee expensesjob travel, union dues, and Certain job education, etc. Attach Form 2106 or 2106-EZ if required. Miscellaneous 21 (See instructions.) Deductions 22 Tax preparation fees . . . . . . . . . . . . . 22 5253 950 23 Other expensesinvestment, safe deposit box, etc. List type and amount Other Miscellaneous Deductions 24 25 26 27 28 23 Add lines 21 through 23 . . . . . . . . . . . . 24 Enter amount from Form 1040, line 38 25 169553 Multiply line 25 by 2% (.02) . . . . . . . . . . . 26 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . Otherfrom list in instructions. List type and amount 6203 . . . 3931 . . 28 29 Is Form 1040, line 38, over $154,950? Total Itemized No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. Deductions } . Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C . 29 15090 Schedule A (Form 1040) 2015 SCHEDULE C (Form 1040) Profit or Loss From Business OMB No. 1545-0074 2015 (Sole Proprietorship) about Schedule C and its separate instructions is at www.irs.gov/schedulec. Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065. Information Department of the Treasury Internal Revenue Service (99) Attachment Sequence No. 09 Name of proprietor Social security number (SSN) BILL QUIGLEY A Principal business or profession, including product or service (see instructions) 354-69-2250 B Enter code from instructions BARGAIN BOOKS C Business name. If no separate business name, leave blank. BILL'S BARGAIN BOOKS E Business address (including suite or room no.) D Employer ID number (EIN), (see instr.) 3 8 6 4 F G H City, town or post office, state, and ZIP code MI 49503 (2) Accrual (3) Other (specify) Accounting method: (1) Cash Did you \"materially participate\" in the operation of this business during 2015? If \"No,\" see instructions for limit on losses If you started or acquired this business during 2015, check here . . . . . . . . . . . . . . . . . I J Did you make any payments in 2015 that would require you to file Form(s) 1099? (see instructions) . If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . Part I 7 8 2 2 Income . . . . . . . . . . . . . Yes No . . Yes Yes 2 3 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the \"Statutory employee\" box on that form was checked . . . . . . . . . Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 4 5 6 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . . . . . . . 4 5 6 91600 167557 7 Gross income. Add lines 5 and 6 . . . 7 167557 8 Advertising . 346 9 Car and truck expenses (see instructions) . . . . . Commissions and fees . 1 Part II 10 11 12 13 16 a b 17 28 29 30 . . . . . . . . . . . . . 8 . . 259157 Office expense (see instructions) 18 Pension and profit-sharing plans . Rent or lease (see instructions): Vehicles, machinery, and equipment 19 7646 19 20 20a Other business property . . . Repairs and maintenance . . . Supplies (not included in Part III) . 20b 21 22 Taxes and licenses . . . . . Travel, meals, and entertainment: Travel . . . . . . . . . 23 24a 25 Deductible meals and entertainment (see instructions) . Utilities . . . . . . . . 24b 25 26 27a b Wages (less employment credits) . Other expenses (from line 48) . . Reserved for future use . . . 43867 4345 17 500 Total expenses before expenses for business use of home. Add lines 8 through 27a . 26 27a 27b . . . . . 28 137979 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . 29 29578 . . Interest: Mortgage (paid to banks, etc.) Other . . . . . . Legal and professional services 9 10 a 11 12 b 21 22 13 29325 14 15 8800 1900 23 24 a b 16a 16b . . . . . . . . No No 36000 2850 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: . . . Use the Simplified . . . . . . . Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) 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. If a loss, you must go to line 32. 32 259157 2 3 18 . and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 31 . 1 2400 . Employee benefit programs (other than on line 19) . . Insurance (other than health) 15 . Expenses. Enter expenses for business use of your home only on line 30. Contract labor (see instructions) Depletion . . . . . Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . 14 . 4 645 BALL AVE, GRAND RAPIDS 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 Form 1040, line 12, (or Form 1040NR, line 13) 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. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P } } 30 31 32a 32b 29578 All investment is at risk. Some investment is not at risk. Schedule C (Form 1040) 2015 Page 2 Schedule C (Form 1040) 2015 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If \"Yes,\" attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . a b Cost c Lower of cost or market Other (attach explanation) Yes . No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . . 35 77900 36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36 55000 37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37 38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38 39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . 39 40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40 132900 41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41 41300 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42 91600 Part IV . . . Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. / / 43 When did you place your vehicle in service for business purposes? (month, day, year) 44 Of the total number of miles you drove your vehicle during 2015, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) 13297 c Other 29652 Yes No 45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . 46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No 47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No If \"Yes,\" is the evidence written? . . . . . . . . . . . . . . . . . . . . Yes No b Part V . . . . . . Other Expenses. List below business expenses not included on lines 8-26 or line 30. BANK CHARGES 145 PROFESSIONAL JOURNALS 360 ACCOUNTING SERVICE 48 Total other expenses. Enter here and on line 27a . 3840 . . . . . . . . . . . . . . . 48 4345 Schedule C (Form 1040) 2015 SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Supplemental Income and Loss OMB No. 1545-0074 2015 (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) Attach to Form 1040, 1040NR, or Form 1041. about Schedule E and its separate instructions is at www.irs.gov/schedulee. Information Attachment Sequence No. 13 Your social security number BILL AND NANCY QUIGLEY Part I 354692250 Note: If you are in the business of renting personal property, use Schedule C or C-EZ (see instruct