Tax Return Problem 7-1 Jeffery Norville is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543. His W-2 for 2014 shows gross wages of $92,600 with $5,741 of social security and $1,343 of Medicare taxes withheld. He has $17,347 of federal withholding and $2,595 in state withholding. Jeffery does not itemize. He had the following stock transactions for the year: Stock Shares Date Purchased Date Sold Sale Price Cost Basis 5,500 7/8/13 9/12/14 $15,000 $18,000 800 3/12/14 10/21/14 43,000 47,000 2,800 2/13/07 10/21/14 30,000 22,000 He also has interest from a savings account with Local Neighborhood Bank of $250 and a dividend from a Form 1099-DIV of $1,600 in ordinary dividends, of which $1,350 are considered qualified dividends. Prepare and submit a 2014 Form 1040 for Jeffery. Assume that each box 3 of the 1099-Bs was not checked for all sales transactions. Tax Return Problem 7-3 Norman and Leslie Beber are married and file a joint return in 2014. They live at 12345 Hemenway Avenue, Marlborough, MA 01752. Norman is a self-employed tax preparer and his SSN is 412-34-5670. Leslie is a manager and her SSN is 412-34-5671. They had the following income and expenses for the year: Leslie's W-2: Gross wages $100,776 Social security tax 6,248 Medicare tax 1,461 Federal withholding tax 20,035 State withholding tax 4,800 Norman was the sole proprietor of NAMA Tax Service. His business is located at 123 Main Street, Marlborough, MA, 01752 and his business code is 541213. He had the following revenue and expenses: Revenue $80,000 Expenses: Advertising 1,200 Insurance 3,200 Telephone 2,400 Office rent 18,000 Utilities 4,800 Office supplies 5,000 Depreciation 6,041 (must be allocated to the 1231 assets listed next) Norman had the following business assets: Office furniture: Purchased for $4,950 on May 20, 2012. The equipment is being depreciated over seven-year MACRS 200% declining balance. Norman sold it on May 15, 2014, for $4,000. Office equipment: Purchased a copier for $13,800 on January 10, 2014. The copier is being depreciated over five-year MACRS 200% declining balance. Norman makes no elections for 179 or bonus depreciation. Computer and equipment: Purchased a computer system for $8,900 on January 2, 2013. The computer is being depreciated over five-year MACRS 200% declining balance. Norman makes no elections for 179 or bonus depreciation. Norman and Leslie had the following other sources of income and deductions: Interest from a CD in the amount of $1,410. Long-term loss carryover from 2013 of $5,000. Real estate taxes of $8,459. Home mortgage interest of $14,041. Charitable contributions in cash over the year of $1,800; all receipts and acknowledgments were received from the charitable organizations. Norman has made four (4) quarterly installments of $625 each as estimated taxes for 2014. All estimated tax payments were paid by the due date using the 1040-ES coupons. Prepare and submit a Form 1040 for Norman and Leslie Beber for 2014. The Bebers do not donate to the presidential election campaign. Attach your forms by saving them as an Adobe .pfd file extension to your computers hard drive. Use a Canvas ASSIGNMENT system to attach the return files and send for grading. All submissions are "date stamped" with hour and minute sent for grading. Each correctly prepared tax return is scored 50 points