Thomas and Mary (Your last name) are married with 3 children, ages 14, 11, and 8. Mary is a senior vice-president for a security firm and Thomas is a self employed consultant. Thomas inherited $800,000 from his grandfather in 2013. He spends 10 hours a week managing the rental property they purchased with part of the inheritance and the family's stock portfolio.

Mary's salary $105,000 (Federal Income Tax withheld 12,400, State Income Tax withheld 4,850)

Interest on GMAC Bonds

800

Interest on City of New Orleans Bonds

1,300

Interest on FNB savings account

600

Berlinco, Inc. (a foreign corporation) (nonqualified dividend)

100

Nebraska Bonds 350

. Thomas and Mary received a Form 1099-B from their broker for the sale of the following securities during 2018:

Date Sale Purchase Sale Price

Nebraska Bonds 03/14/18 10/22/07 $10,000 $ 80 $1,710

Cassill Corporation Stock 10/18/18 02/19/17 $8,900 $ 450 $9,630

They had purchased the Bonds for 10,500 and the shares of Cassill Corporation stock at a cost of $7,800.

On June 15, 2018 they received 50 shares of General Dynamics' stock as a stock dividend. The fair market value of the General Dynamics stock on June 15, 2018 was $33.50 per share.

Rental Income

35,000

Rental Expenses

Insurance 1,548

Repairs and Maintenance 7,878

Mortgage Interest 8,586

Property Taxes 3,890

Depreciation Expense 12,878

Consulting Income

Expenses: Travel 10,500

Meals 1,000

Conferences 1,500

Office Expenses 7,500

Payroll Tax Expense 1,498

Wages for Office Assistance 18,000

84,000

Thomas and Mary also paid $10,000 in Estimated Federal Taxes and $4,000 in Estimated State Income Taxes.

Itemized deductions:

Unreimbursed medical expenses:

Medical insurance premiums

$ 6,205

Prescription drugs

250

Dentist

950

Emergency room fee

1,875

Cold pills, aspirin, other over-the-counter medicine 120

Rental fee for crutches 80

Real estate taxes

$ 1, 600

Ad valorem tax paid on tags

785

State income tax paid in 2018 for 2017 tax return

150

Home mortgage interest

10,800

Home equity interest

500

Charitable contributions - cash

6,350

Charitable contributions - clothes (Original Cost 1,000, FMV $300)

Tax preparation fee for 2017 return, paid in 2018

300

Unreimbursed business expenses

888

Compute the adjusted gross income, taxable income, and tax liability using actual IRS tax forms for 2018

I am expecting the following forms to be completed: 1040 Schedules A, C, D, E, and SE. 1, 2