TAX QUESTION

Comprehensive Problem 1 - Part 3: Form 2441 (page 1), Schedule E, Form 4562, Child Tax Credit Worksheet, Form 8995, and Schedule 8812.

Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Some of the data information will be reproduced in the other parts for convenience.

Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form. If required, round your answers to the nearest dollar. If an amount box does not require an entry or the answer is zero, enter "0".

Information regarding Noah and Joan's rental property is reproduced here. The rental property located at 16 Oakwood Ave, Unit A, Dayton, OH 45409. Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed. It was rented for 365 days. The revenue and expenses for the year are as follows:

Rental income	$13,800
Insurance	575
Interest expense	6,870
Property taxes	1,016
Miscellaneous expenses	700
The home was acquired for $85,000 in 2003. No improvements have been made to the property.

ROUNDUP DAY CARE CENTER 245 N. WILKINSON STREET DAYTON, OH 45402

January 12, 2020

Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402

Dear Joan and Noah,

Thank you for a great 2019 at Roundup! We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020. We have provided the tax information for calendar year 2019 below. Please let us know if you need any additional information.

Sincerely,

Charles F. Burgundian Executive Director, Roundup Day Care EIN 54-0983456

Date of service	Amount Paid	Child
January 1, 2019 December 31, 2019	$3,000.00	Mary Sue Arc

Fill out Form 2441, Schedule E, Child tax credit worksheet, Schedule 8812, Form 4562, and Form 8995