This is one big continous problem, need 7-1 now. Dont need help with schedules just forms, need help with numbers.

01 2017. CHAPTER 3: CONTINUOUS TAX RETURN PROBLEMS 3-1 Problem Facts. Larry K. and Cathy L. Zepp have been married 18 years. Larry i 62 years old (Social Security number 43 3-45-6789) while Cathy is 47 years old Security number 4 SociaSecurity number 433-45-6788). They live at 1234 Elm Dr. in Indianapolis, Indiana 46202. The couple uses the cash method of on a calenda presidential election campaign. a. Larry is a salesman employed by DSK Industries. This year he earned $120,200. accounting and files their return r-year basis. They are tired of politics and do not want to contribute to the Federal and state income taxes withheld were $17,000 and $7,000 respectively Social Security tax withheld was $7,452 and Medicare tax withheld was $1,743 b. Cathy recently completed a graduate degree in computer technology. She free- lances as an independent contractor in computer graphics. She uses her own name as the name of her business. Her earnings received from various engagements were $12,000. Her only expenses paid during the year were for miscellaneous of- fice supplies of $3,000. She paid estimated federal taxes during the year of $1,000 ($250 on each due date). Her business uses the cash method of accounting. c. Other income earned by the couple included interest income of $4,000 from a certificate of deposit issued by Highland National Bank and $975 of interest from tax-exempt bonds issued by the State of Indiana. The couple contributed $2,000 to a Health Savings Account that is fully deductible. d. e. The couple has adequate health insurance coverage for the entire year. f. The couple owns a duplex that it rents out. It is located at 111 Nowhere Ave.. Indianapolis, Indiana. Their rental records reveal the following information for the year Rental expenses: 400 8,000 1,000 600 Mortgage interest.... Real property taxes on rental property.. .. . . g. Other expenses paid during the year included: Unreimbursed medical expenses (doctors, dentists) $ 9,000 Real property taxes on home.. State income taxes withheld (see above). 4,000 7,000 1,000 Rental of safety deposit box to hold gold coins 100 Unreimbursed employee business expenses of Larry.3,000 Prepare the 2017 individual income tax return for the Zepps. Complete Form 1040 and Schedules A, B, C, E, and SE. Assume that all of the expenses except their business expenses are incurred jointly. Ignore any estimated tax penalty Part 1:Continuous Tax Return Problems CHAPTER 4: CONTINUOus TAx RETURN PROBLEMS 4-1 Problem Facts. This is a continuation of the tax return problem beginning in Chapter 3. See previous facts above. New Facts: Larry and Cathy Zepp just called and after a quick discussion the follow ing additional information was obtained a. Larry received a corrected W-2 in the mail. The corrected W-2 (see below) reveals that his wages decreased to $115,000 (rather than $120,200) and federal income taxes withheld were $10,000 (rather than $17,000). Social Security and Medicare taxes also were revised. b. Last year's federal tax liability before prepayments was $10,000. c. They forgot to note on their tax organizer that they had two children, a son and a daughter: Zachary W. Zepp (111-33-4444, date of birth 12/1/2000) and Jennifer A. Zepp (111-33-4445, 1/4/2008). Both children live with them the entire year. Zachary is a full-time student. Jennifer is considered legally blind. d. Larry explained that he was formerly married to Sue Gottaway (443-44-1234) who currently has custody of their son Sam A. Gottaway (447-93-9444, 4/14/1996) Sue has agreed to surrender the exemption for Sam to Larry and has provided Larry the necessary form. Sue provides all of Sam's support. Sam is a full-time student at the University of Texas. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040, 2210, Schedules A, B, C, E, SE, and any other forms required. Assume that all of the expenses except their business expenses are incurred jointly. CHAPTER 5: CONTINUOuS TAX RETURN PROBLEMS hl n Beth Ti s coution of the tax returm problem covering Chapters 3 and 4. See previous facts above. New Facts: This morning's mail contained a note from Larry Zepp, including the fol- lowing information: a. Cathy forgot to explain several things about her consulting income. First, $2.400 of the $12,000 she received was for services to be performed in 2017. Second, she performed consulting services in December but was not paid until January when she received $475. She had sent the client a bill for $475 in December and the amount was included in the $12,000 she reported earlier. b. Larry paid federal estimated income taxes of $12.000 ($3,000 on each of the due dates). He made no state estimated tax payments c. A Schedule K-1 from a calendar-year partnership in which Larry is a small inves- tor was included. The relevant portions of the Schedule K-1 are shown below. In addition, Larry received a $775 distribution from the partnership during the year. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040, 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly CHAPTER 6: CONTINUOus TAX RETURN PROBLEMS Problem Facts. This is a continuation of the tax return problem covering Chapter and 5. See previous facts above. New Facts: a. This yea s 3,4 6-1 r Larry began receiving Social Security benefits. For the year, he received $12,000 b. The couple received a Form 1099 from National Funds (see below) regarding an investment in a mutual fund. Cathy was unemployed for a short period and received unemployment compensa- d. Cathy received $2,000 of alimony from her first husband. The divorce occurred c. tion of $800 reported on the Form 1099-G (see below). 25 years ago and has not been changed since. Cathy inherited $100,000 from her rich uncle. e. f. The Zepps overpaid their income taxes for the prior year and received both a fed- eral and state refund. The federal refund was $1,700. They received a Form 1099- porting the state refund of S925. Last year, the G from the state of Indiana re income taxes of $2,598. surance policy. Larry received life insurance proceeds of $25,000. Zepps' total itemized deductions were $19,000, including a deduction for state g. Larry's father died this year and Larry was the beneficiary of his father's life in- h. In June, DSK honored Larry for his 25 years of service. He received a plaque and a gift certificate for $400 at The Golf Shop, which he intends to use to buy a nevw driver i. Cathy's father had loaned her $5,000 to help her complete school and start her business. This year he told her that she did not have to repay him. Prepare the 2017 individual income tax return for the Zepps. Complete Forms1 040, 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly CHAPTER 7: CONTINUOUs TAX RETURN PROBLEMS roblem Facts. This is a continuation of the tax return problem covering Cha 4, 5, and 6. See previous facts above. New Facts: 3, a. The $400 paid in 2017 for the insurance coverage related to the rental property was for a one-year term that begins on February 1, 2018. On September 1, the couple refinanced the mortgage on the rental property to get b. loan wa a lower interest rate. They paid points of $1,800. The term of the new 15 years. Cathy paid medical insurance premiums of $4,000 tomer left town and Cathy indicates that the receivable is now worthless. e. d. In early January, Cathy billed a customer $627 for setting up a website. The cus- e. During the year, Larry explored the possibility of selling for a new employer However, after some interviewing, he decided to stay with DSK. He paid $30 to have new resumes printed and another $20 to register his name on an employment r. Larry paid several parking tickets during the year while calling on customers. g. Larry contributed $250 to the Democratic National Party and Cathy contributed h. The couple paid $3,000 premium for a $1,000,000 life insurance policy on Larry's website Total cost was $48 $250 to the Republican National Party life. Cathy was the beneficiary i. Cathy continued her hobby of breeding and selling terriers. This year she sold 10 puppies for $6,000. Her expenses for raising the dogs (food, shots, etc.) were $2,000. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly. 01 2017. CHAPTER 3: CONTINUOUS TAX RETURN PROBLEMS 3-1 Problem Facts. Larry K. and Cathy L. Zepp have been married 18 years. Larry i 62 years old (Social Security number 43 3-45-6789) while Cathy is 47 years old Security number 4 SociaSecurity number 433-45-6788). They live at 1234 Elm Dr. in Indianapolis, Indiana 46202. The couple uses the cash method of on a calenda presidential election campaign. a. Larry is a salesman employed by DSK Industries. This year he earned $120,200. accounting and files their return r-year basis. They are tired of politics and do not want to contribute to the Federal and state income taxes withheld were $17,000 and $7,000 respectively Social Security tax withheld was $7,452 and Medicare tax withheld was $1,743 b. Cathy recently completed a graduate degree in computer technology. She free- lances as an independent contractor in computer graphics. She uses her own name as the name of her business. Her earnings received from various engagements were $12,000. Her only expenses paid during the year were for miscellaneous of- fice supplies of $3,000. She paid estimated federal taxes during the year of $1,000 ($250 on each due date). Her business uses the cash method of accounting. c. Other income earned by the couple included interest income of $4,000 from a certificate of deposit issued by Highland National Bank and $975 of interest from tax-exempt bonds issued by the State of Indiana. The couple contributed $2,000 to a Health Savings Account that is fully deductible. d. e. The couple has adequate health insurance coverage for the entire year. f. The couple owns a duplex that it rents out. It is located at 111 Nowhere Ave.. Indianapolis, Indiana. Their rental records reveal the following information for the year Rental expenses: 400 8,000 1,000 600 Mortgage interest.... Real property taxes on rental property.. .. . . g. Other expenses paid during the year included: Unreimbursed medical expenses (doctors, dentists) $ 9,000 Real property taxes on home.. State income taxes withheld (see above). 4,000 7,000 1,000 Rental of safety deposit box to hold gold coins 100 Unreimbursed employee business expenses of Larry.3,000 Prepare the 2017 individual income tax return for the Zepps. Complete Form 1040 and Schedules A, B, C, E, and SE. Assume that all of the expenses except their business expenses are incurred jointly. Ignore any estimated tax penalty Part 1:Continuous Tax Return Problems CHAPTER 4: CONTINUOus TAx RETURN PROBLEMS 4-1 Problem Facts. This is a continuation of the tax return problem beginning in Chapter 3. See previous facts above. New Facts: Larry and Cathy Zepp just called and after a quick discussion the follow ing additional information was obtained a. Larry received a corrected W-2 in the mail. The corrected W-2 (see below) reveals that his wages decreased to $115,000 (rather than $120,200) and federal income taxes withheld were $10,000 (rather than $17,000). Social Security and Medicare taxes also were revised. b. Last year's federal tax liability before prepayments was $10,000. c. They forgot to note on their tax organizer that they had two children, a son and a daughter: Zachary W. Zepp (111-33-4444, date of birth 12/1/2000) and Jennifer A. Zepp (111-33-4445, 1/4/2008). Both children live with them the entire year. Zachary is a full-time student. Jennifer is considered legally blind. d. Larry explained that he was formerly married to Sue Gottaway (443-44-1234) who currently has custody of their son Sam A. Gottaway (447-93-9444, 4/14/1996) Sue has agreed to surrender the exemption for Sam to Larry and has provided Larry the necessary form. Sue provides all of Sam's support. Sam is a full-time student at the University of Texas. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040, 2210, Schedules A, B, C, E, SE, and any other forms required. Assume that all of the expenses except their business expenses are incurred jointly. CHAPTER 5: CONTINUOuS TAX RETURN PROBLEMS hl n Beth Ti s coution of the tax returm problem covering Chapters 3 and 4. See previous facts above. New Facts: This morning's mail contained a note from Larry Zepp, including the fol- lowing information: a. Cathy forgot to explain several things about her consulting income. First, $2.400 of the $12,000 she received was for services to be performed in 2017. Second, she performed consulting services in December but was not paid until January when she received $475. She had sent the client a bill for $475 in December and the amount was included in the $12,000 she reported earlier. b. Larry paid federal estimated income taxes of $12.000 ($3,000 on each of the due dates). He made no state estimated tax payments c. A Schedule K-1 from a calendar-year partnership in which Larry is a small inves- tor was included. The relevant portions of the Schedule K-1 are shown below. In addition, Larry received a $775 distribution from the partnership during the year. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040, 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly CHAPTER 6: CONTINUOus TAX RETURN PROBLEMS Problem Facts. This is a continuation of the tax return problem covering Chapter and 5. See previous facts above. New Facts: a. This yea s 3,4 6-1 r Larry began receiving Social Security benefits. For the year, he received $12,000 b. The couple received a Form 1099 from National Funds (see below) regarding an investment in a mutual fund. Cathy was unemployed for a short period and received unemployment compensa- d. Cathy received $2,000 of alimony from her first husband. The divorce occurred c. tion of $800 reported on the Form 1099-G (see below). 25 years ago and has not been changed since. Cathy inherited $100,000 from her rich uncle. e. f. The Zepps overpaid their income taxes for the prior year and received both a fed- eral and state refund. The federal refund was $1,700. They received a Form 1099- porting the state refund of S925. Last year, the G from the state of Indiana re income taxes of $2,598. surance policy. Larry received life insurance proceeds of $25,000. Zepps' total itemized deductions were $19,000, including a deduction for state g. Larry's father died this year and Larry was the beneficiary of his father's life in- h. In June, DSK honored Larry for his 25 years of service. He received a plaque and a gift certificate for $400 at The Golf Shop, which he intends to use to buy a nevw driver i. Cathy's father had loaned her $5,000 to help her complete school and start her business. This year he told her that she did not have to repay him. Prepare the 2017 individual income tax return for the Zepps. Complete Forms1 040, 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly CHAPTER 7: CONTINUOUs TAX RETURN PROBLEMS roblem Facts. This is a continuation of the tax return problem covering Cha 4, 5, and 6. See previous facts above. New Facts: 3, a. The $400 paid in 2017 for the insurance coverage related to the rental property was for a one-year term that begins on February 1, 2018. On September 1, the couple refinanced the mortgage on the rental property to get b. loan wa a lower interest rate. They paid points of $1,800. The term of the new 15 years. Cathy paid medical insurance premiums of $4,000 tomer left town and Cathy indicates that the receivable is now worthless. e. d. In early January, Cathy billed a customer $627 for setting up a website. The cus- e. During the year, Larry explored the possibility of selling for a new employer However, after some interviewing, he decided to stay with DSK. He paid $30 to have new resumes printed and another $20 to register his name on an employment r. Larry paid several parking tickets during the year while calling on customers. g. Larry contributed $250 to the Democratic National Party and Cathy contributed h. The couple paid $3,000 premium for a $1,000,000 life insurance policy on Larry's website Total cost was $48 $250 to the Republican National Party life. Cathy was the beneficiary i. Cathy continued her hobby of breeding and selling terriers. This year she sold 10 puppies for $6,000. Her expenses for raising the dogs (food, shots, etc.) were $2,000. Prepare the 2017 individual income tax return for the Zepps. Complete Forms 1040 2210, Schedules A, B, C, E, and SE. Assume that all of the expenses except their busi- ness expenses are incurred jointly