TAX PROJECT required info

In the tax year, the Fienness paid $500 for the preparation of their last year's tax return fincluding $250 for the preparation of Schedule C, Profit or Loss from Business for George Fiennes's furniture business), $50 for the rental of a safe deposit box where they stored their securities, and $350 for investment publications. Form 4684, Section A On March 2 this year, a burglar entered their home and stole a ring and a coin collection. The ring had been purchased in May 15, 2016 at a cost of $3,000. Mrs. Fiennes had purchased the coin collection in July 15, 2011 at a cost of $1,862. An insurance company appraised the ring at a fair market value of $5,008, but limited its loss coverage on jewelry under a homeowners' policy to $1,500. The insurance company excluded the coin collection from the insurance policy because of its policy restrictions on such items. At the time of the theft, the fair market value of the coin collection was $2,000. 2 Form 1040, Schedule B During 2022, the Fienness received \$393 in interest from the Heartland National. They received \$271 in interest from tax-exempt bonds issued by the state of New York. The Fiennes's received the following qualified dividends: $293 from Rambling Motorcycles, Inc., $726 from Secure Fund, and $250 from Rapid Growth Mutual Fund. They also received a $100 capital gain distribution from Rapid Growth. In addition, the Fiennes's received $593 in non-qualified foreign corporation dividends from Consolidated Tapioca, and paid foreign taxes of \$10 to various countries (select: other countries). The responses to the questions on Part III of Schedule B are "No." Form 1040, Schedule D During this tax year, the Fienness sold the following capital assets: On February 2,100 shares of Ahab Inc. were sold for $1,639. They had been purchased on November 12, 2021 for $3,267. On November 5, 200 shares of Pequod Inc. were sold for $4,148. They had been purchased on January 5, 2022 for $2,959. On December 4, 100 shares of Squall Inc. were sold for $9,361. They had been purchased on January 4, 2010 for $4,490. On December 10, 200 shares of Kismet Inc. were sold for $6,065. They had been purchased on September 5, 2015 for $2,895. On December 15, a number of gold coins were sold for $2,000. The coins had been purchased on October 15 , 2016 for $3,000. The current depreciation figure, taken from the Fienness' work papers is $3,714. The studio was purchased on February 5, 2013 at $100,000. The Fienness did not make any payments that required them to file Form(s) 1099. The Fienness has rented the rental property for more than four years. Fienness kept separate books and records for their rental property. The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents, regarding the following: hours of all services performed; description of all services performed; dates on which such services were performed; and who performed the services. This property is treated as a trade or business for purposes of the section 199A deduction under Rev. Proc. 2019-38. 3 Form 2441 During this tax year, the Fienness' daughter, Ruth, attended two child care centers. They were: Happy Day Care, 4210 W. Maple, Riverdale, New York 10471, whose identification number is 36-0987654; and Greenfields Day Care, 901 N. Ash, Riverdale, New York 10471, whose identification number is 36-1234567. The Fienness paid $3,763 to Happy Day Care and $2,559 to Greenfields Day Care. The Fienness did not receive employer-provided dependent care benefits. BUSINESS INCOME Form 1040, Schedule C Mr. Fiennes operated Interiors Unlimited, selling home furnishings at retail, as a sole proprietor during the entire year. The business address is 45 W. 168 St, Bronx, New York 10032. His employer identification number is 36-3456789. The business code is 442200 . Mr. Fiennes filed all of the appropriate payroll tax forms and Form(s) 1099 for this tax year. In order to clearly show business income, Mr. Fiennes maintains an inventory at cost and he uses the accrual method of accounting for his sales and purchases. Total gross receipts of the business were $149,060 and returns and allowances amounted to $2,200. The business books and records showed the following at the end of the year: Form 4562 On January 10, 2022, Mr. Fiennes purchased office furniture at a cost of $12,242. The furniture is used 100% for business. It is seven-year MACRS property. Mr. Fiennes elected to expense $2,500 of the cost under Code Sec. 179. Mr. Fiennes elected not to claim the bonus depreciation available for amy business property placed in service during this tax year. On July 15, 2022, Mr. Fiennes purchased a pickup truck for use in his business. It was driven 8,000 miles. The truck, used 100% for business, cost $48,065 and sales tax was $3,000, for a basis of $51,065. The truck is considered five-year MACRS property. Also, it falls in the classification of a light, general-purpose truck, subject to depreciation limits. The Fienness opt out of Sec. 168(K) bonus depreciation for this truck. On June 15, 2018, Mr. Fiennes purchased fixtures for the store for $10,473. The current depreciation deduction for the foxtures was $935. The beginning accumulated depreciation was 7201 . The Fienness opt out of the 168(k) deduction. 4 Mr. Fiennes bought a brick building on July 1,2010,$87,780 of the price being allocable to the building for depreciation purposes. No capital improvements were made. Depreciation on the building is computed by using the MACRS method (non-residential). The allowable MACRS deduction for this year tax would be calculated at the rate of 2.564%. Form 4684 On September 1,2022, a garage that had been purchased for $36,715 on July 1, 2013 and used exclusively for Mr. Fiennes's business was damaged by fire. The garage was located in Brorx, NY (zip code: 10471). In order to repalr the garage after the fire, Mr. Flennes spent $8,118. The repalrs were considered to be an improvement to the property, which, prior to the casualty, was being depreciated under the MACRS method for nonfesidential property. The amount of depreciation claimed prior to this tax year was $7,963. Mr. Fiennes uses Form 4684, Section B, to determine the recognized casualty gain or loss from the fire damage to the garage. Assume that the fair market value of the garage was $36,152 before the fire and it had a fair market value immediately after the fire of $26,049. Assume, in completing Form 4684, that the total amount of depreciation that Mr. Fiennes had claimed for the garage up to the date of the fire was $8,591 1040 Project You will be working on the 2022 tax returns of the Fiennes family. The 2022 tax year is feferred to as the current tax vear. The basic information of the familv is: Home address: 789 N. Tree Drive, Riverdale, NY 10471. Home phone: 718-555-9999. Both have good evesight and live with their three children. Mr. Fiennes elects to have $3 of his income tax go to the Presidential Election Campaign Fund. Mrs. Fiennes elects not to contribute. The Fienness' oldest son, Edward, is a student at the Jasper University (4513 Manhattan College Parkway, Bronx, NY 10471). He worked during the summer and earned $5,279. Their other son, John, is a high school student. He eamed $3,214 working full-time during the summer and part-time during the remainder of the year. Neither son had any additional income. Their daughter, Ruth, is an elementary school student. She had no earned or unearned income during the year. In August, the Fienness paid $4,500 in tuition for their son, Edward, for the academic period that started in September. They received a Form 1098-T for this year showing the payment received in Box 1. Box 8 is checked indicating Edward was at least a half-time student. Edward had not claimed the American Opportunity Credit or Hope Scholarship Credit in any four prior tax years, did not complete the first four years of post-secondary education before this year, and he had not been convicted of any felony. The Fienness provide support for Mrs. Fiennes's mother, Grace D. Taylor (born 6/6/1949). The total support of Mrs. Taylor is $6,860, received from the following three sources: (1) $3,430 from Mary Fiennes, (2) $1,430 from another daughter, Thelma Taylor, and (3) $2,000 in social security benefits. Mrs. Grace D. Taylor lived with the Fienness during all of this year. Her social security number is 400-44-0004. Thelma Taylor provides the Fiennes's with a written, signed statement, that she will not claim her mother as a dependent in 2021. Thelma Taylor lives at 1425 S. 62nd Street, Chicago, IL 60699, and her social security number is 500-55-0005. The Fienness use Trish Ford, a professional tax preparer, to prepare their income tax return. Trish Ford's PTIN is P98765432, and she works for E\&Z Tax Preparation (EIN 136 -0987654), which is located in a nearby suburb of Yonkers (telephone number 914-555-1040). However, the Fiennes's do not authorize her to discuss their return with the IRS. INCOME AND EXPENSES GENERALLY During this tax year, Mrs. Fiennes was employed as a salesperson by XPert Publishing Inc. EIN: 65-1234001. Address: 100 W. 42nd St. New York, New York 10011. Her form W-2 for this tax year reports the following: Box 1. Wages, tips and other compensation $97,650 Box 2. Federal income tax withheld $9,667