Please complete the 2019 federal income tax return for Mark and Wendy Wilson. If required information is missing, use reasonable assumptions to fill in the gaps. The Wilsons also donated clothing, electronics, furniture and other household goods to the Salvation Army of Beeson, WV on November 12, 2019. Estimated thrift value of the goods donated was $450. Mark (age 53) and Wendy (age 48) Wilson live in Beeson, West Virginia. Mark is the Director of Research and Development at a small alternative energy start-up company. Wendy is designer who currently consults with several clients. She also serves on the board of directors of a public company. The Wilsons have three children Samantha (age 20), Alec (age 15), and Davis (age 12). The Wilsons plan to file a joint tax return. The Wilsons provided the following information: Mark's social security number is 598-94-2583 Wendy's social security number is 301-52-2942 Samantha's social security number is 887-44-8710 Alec's social security number is 810-42-9092 Davis' social security number is 855-11-3021 The Wilson's mailing address is 286 Elm Drive, Beeson, West Virginia 24714 . The Wilsons also received the following income during the year: Interest income from First Bank of WV $807 Interest income from Weaverville, WV School District $1,180 Interest income from U.S. Treasury Bond $450 Interest income from General Mills corporate bond $440 Interest income from the State of Maine Bond $8,000 Qualified dividend income from Rio Tinto $11,500 Qualified dividend income from Microsoft $2,750 Qualified dividend income from Cooper Tire $375 Qualified dividend income from Cardinal Health $525 Qualified dividend income from Union Pacific $1,200 Nonqualified dividend income from Procter & Gamble $690 Qualified dividend income from PepsiCo $325 Qualified dividend income from Kellogg $120 Qualified dividend income from Abbott Labs $225 Qualified dividend income from 3M $370 Nonqualified dividend income from China Fund $1,800 Samantha attends college full time and lives away from home during the school year. She earned $7,000 from a summer job, but she did not provide more than half of her own support during the year. Wendy and Mark also support Mark's aging mother, Martha, age 79. Her social security number is 402-78-4487. Martha lives in a nursing home in Beeson, but Joseph pays 80% of Martha's support. Martha's gross income for 2019 is $6,000. The Wilsons did not own, control, or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year. The entire Wilson family was covered by minimum essential health insurance during each month in 2019. The above amounts do not reflect any income items described below. The Wilson's insurance was through Mark's employer, Alternative Energy. Mark Wilson's form W-2 for 2019 is attached. The Wilsons had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B and basis information for each stock sale and purchase was reported to the IRS): The Wilsons received a West Virginia state income tax refund of $800 in May of 2019. They received the refund because they had overpaid their West Virginia state individual income tax in 2018. On their 2018 Federal income tax return, the Wilsons itemized, and deducted and received a tax benefit for all state tax income taxes paid in 2018. Sold 2,000 shares of Microsoft Sold 75 shares of Apple, Inc. Sold 350 shares of Cooper Tire Sold 1,000 shares of Cardinal Health Sold 50 shares of Union Pacific 7/1/19 4/15/19 10/14/19 9/3/19 1/7/19 $22,500 $28,750 $14,700 $35,000 $2,750 The Wilsons paid the following expenses during the year: Dentist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) Real property taxes on residence Vehicle (not used for business) property tax based upon value Mortgage interest on principal residence mortgage of $600,000 Contribution to United Way Contribution to American Cancer Society Contribution to neighborhood drive to oppose development Contribution to the Temple Mount Synagogue $2,000 $2,825 $1,655 $2,550 $ 570 $12,037 $2,000 $ 500 $ 500 $12,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 100 shares of Procter & Gamble 7/10/19 $7,700 Purchased 350 shares of Cooper Tire 11/1/19 $14,000 Purchased 350 shares of PepsiCo 5/14/19 $32,000 Purchased 300 shares of Kellogg 10/14/19 $21,000 Purchased 2,000 shares of Microsoft on 5/1/19 $21,000 Purchased 200 shares of Apple, Inc. on 3/8/16 $90,000 Purchased 300 shares of Cooper Tire on 1/12/15 $9,000 Purchased 50 shares of Cooper Tire on 6/28/18 $2,000 Purchased 100 shares of Union Pacific on 9/5/17 $6,000 Received 1,000 shares of Cardinal Health from Wendy's father as a gift on 10/10/02. Her father's basis in the stock at the time of the gift was $7,000. Fair market value of the stock at the date of the gift was $41,000 Asset Computer Desk Plotting Machine Drafting Table 2019 Lexus Purchase Date Purchase Price July 18, 2019 $3,412.00 May 12, 2019 $5,810.00 November 20, 2019 $12,412.00 October 11, 2019 $6,416.00 January 5, 2019 $65,802.00 The Wilsons have a $3,000 long-term capital loss carryover and a $5,000 short-term capital loss carryover from the prior tax year. On September 1, the Wilsons paid $200 in foreign taxes attributable to the dividend received from the China Fund. She does not want to elect Section 179 or bonus depreciation Wendy Wilson is a designer and member of the board of directors of a public company. She received the following revenue during the year: (she uses the cash method of accounting for both activities). The Wilsons would like to contribute to the Presidential Election Campaign Fund. They would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $18,500 Strategic Solutions $21,750 Board of director compensation reported to her on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $8,500 In each of these self-employment endeavors, Wendy is an active participant, and both activities are considered specified service trades or businesses for purposes of the Qualified Business Income Deduction. Assume both activities qualify as a trade or business. During the year, Wendy paid the following business expenses for each activity: Consultant-related: Airfare Hotels Meals Parking Office Expenses Office Rent Utilities $6,900 $5,450 $6,390 $1,520 $8,825 $9,300 $7,818 Board of Director-related: Meals Hotel $496 $900 Neither of Wendy's business activities required the filing of Form(s) 1099 to report payments she made during the tax year. Wendy purchased the following assets during 2019 that she uses 100% for her consulting business a Employees social Security number 598-94-2583 b Employer identification number (EIN) 21-9765432 c Employer's name, address, and ZIP code Alternative Energy Safe, accurate, Visit the IRS website at OMB No. 1545-0008 FAST! Use re- file www.irs.gov/efile 1 Wages, tips, other compensation 2 Federal income tax withheld 148,325.00 17,230.00 3 Social security wages 4 Social security tax withheld 119,825.00 8,239.80 5 Medicare wages and tips 6 Medicare tax withheld 137,825.00 1,998.46 7 Social Security tips 8 Allocated tips 872 Wayfair Avenue Beeson, WV, 24714 d Control number 9 Verification code 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Mark A. Wilson 286 Elm Drive Beeson, West Virginia 24714 13 Statutory employee Retirement En 12b Third-carty sick cay 14 Other 12c 12d 15 State f Employee's address and ZIP code Employer's state ID number w | 48763087-0 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, etc. 148,325.00 17 State income tax 7,900.00 Department of the TreasuryInternal Revenue Service Form W-2 Wage and Statement 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Please complete the 2019 federal income tax return for Mark and Wendy Wilson. If required information is missing, use reasonable assumptions to fill in the gaps. The Wilsons also donated clothing, electronics, furniture and other household goods to the Salvation Army of Beeson, WV on November 12, 2019. Estimated thrift value of the goods donated was $450. Mark (age 53) and Wendy (age 48) Wilson live in Beeson, West Virginia. Mark is the Director of Research and Development at a small alternative energy start-up company. Wendy is designer who currently consults with several clients. She also serves on the board of directors of a public company. The Wilsons have three children Samantha (age 20), Alec (age 15), and Davis (age 12). The Wilsons plan to file a joint tax return. The Wilsons provided the following information: Mark's social security number is 598-94-2583 Wendy's social security number is 301-52-2942 Samantha's social security number is 887-44-8710 Alec's social security number is 810-42-9092 Davis' social security number is 855-11-3021 The Wilson's mailing address is 286 Elm Drive, Beeson, West Virginia 24714 . The Wilsons also received the following income during the year: Interest income from First Bank of WV $807 Interest income from Weaverville, WV School District $1,180 Interest income from U.S. Treasury Bond $450 Interest income from General Mills corporate bond $440 Interest income from the State of Maine Bond $8,000 Qualified dividend income from Rio Tinto $11,500 Qualified dividend income from Microsoft $2,750 Qualified dividend income from Cooper Tire $375 Qualified dividend income from Cardinal Health $525 Qualified dividend income from Union Pacific $1,200 Nonqualified dividend income from Procter & Gamble $690 Qualified dividend income from PepsiCo $325 Qualified dividend income from Kellogg $120 Qualified dividend income from Abbott Labs $225 Qualified dividend income from 3M $370 Nonqualified dividend income from China Fund $1,800 Samantha attends college full time and lives away from home during the school year. She earned $7,000 from a summer job, but she did not provide more than half of her own support during the year. Wendy and Mark also support Mark's aging mother, Martha, age 79. Her social security number is 402-78-4487. Martha lives in a nursing home in Beeson, but Joseph pays 80% of Martha's support. Martha's gross income for 2019 is $6,000. The Wilsons did not own, control, or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year. The entire Wilson family was covered by minimum essential health insurance during each month in 2019. The above amounts do not reflect any income items described below. The Wilson's insurance was through Mark's employer, Alternative Energy. Mark Wilson's form W-2 for 2019 is attached. The Wilsons had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B and basis information for each stock sale and purchase was reported to the IRS): The Wilsons received a West Virginia state income tax refund of $800 in May of 2019. They received the refund because they had overpaid their West Virginia state individual income tax in 2018. On their 2018 Federal income tax return, the Wilsons itemized, and deducted and received a tax benefit for all state tax income taxes paid in 2018. Sold 2,000 shares of Microsoft Sold 75 shares of Apple, Inc. Sold 350 shares of Cooper Tire Sold 1,000 shares of Cardinal Health Sold 50 shares of Union Pacific 7/1/19 4/15/19 10/14/19 9/3/19 1/7/19 $22,500 $28,750 $14,700 $35,000 $2,750 The Wilsons paid the following expenses during the year: Dentist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) Real property taxes on residence Vehicle (not used for business) property tax based upon value Mortgage interest on principal residence mortgage of $600,000 Contribution to United Way Contribution to American Cancer Society Contribution to neighborhood drive to oppose development Contribution to the Temple Mount Synagogue $2,000 $2,825 $1,655 $2,550 $ 570 $12,037 $2,000 $ 500 $ 500 $12,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 100 shares of Procter & Gamble 7/10/19 $7,700 Purchased 350 shares of Cooper Tire 11/1/19 $14,000 Purchased 350 shares of PepsiCo 5/14/19 $32,000 Purchased 300 shares of Kellogg 10/14/19 $21,000 Purchased 2,000 shares of Microsoft on 5/1/19 $21,000 Purchased 200 shares of Apple, Inc. on 3/8/16 $90,000 Purchased 300 shares of Cooper Tire on 1/12/15 $9,000 Purchased 50 shares of Cooper Tire on 6/28/18 $2,000 Purchased 100 shares of Union Pacific on 9/5/17 $6,000 Received 1,000 shares of Cardinal Health from Wendy's father as a gift on 10/10/02. Her father's basis in the stock at the time of the gift was $7,000. Fair market value of the stock at the date of the gift was $41,000 Asset Computer Desk Plotting Machine Drafting Table 2019 Lexus Purchase Date Purchase Price July 18, 2019 $3,412.00 May 12, 2019 $5,810.00 November 20, 2019 $12,412.00 October 11, 2019 $6,416.00 January 5, 2019 $65,802.00 The Wilsons have a $3,000 long-term capital loss carryover and a $5,000 short-term capital loss carryover from the prior tax year. On September 1, the Wilsons paid $200 in foreign taxes attributable to the dividend received from the China Fund. She does not want to elect Section 179 or bonus depreciation Wendy Wilson is a designer and member of the board of directors of a public company. She received the following revenue during the year: (she uses the cash method of accounting for both activities). The Wilsons would like to contribute to the Presidential Election Campaign Fund. They would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $18,500 Strategic Solutions $21,750 Board of director compensation reported to her on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $8,500 In each of these self-employment endeavors, Wendy is an active participant, and both activities are considered specified service trades or businesses for purposes of the Qualified Business Income Deduction. Assume both activities qualify as a trade or business. During the year, Wendy paid the following business expenses for each activity: Consultant-related: Airfare Hotels Meals Parking Office Expenses Office Rent Utilities $6,900 $5,450 $6,390 $1,520 $8,825 $9,300 $7,818 Board of Director-related: Meals Hotel $496 $900 Neither of Wendy's business activities required the filing of Form(s) 1099 to report payments she made during the tax year. Wendy purchased the following assets during 2019 that she uses 100% for her consulting business a Employees social Security number 598-94-2583 b Employer identification number (EIN) 21-9765432 c Employer's name, address, and ZIP code Alternative Energy Safe, accurate, Visit the IRS website at OMB No. 1545-0008 FAST! Use re- file www.irs.gov/efile 1 Wages, tips, other compensation 2 Federal income tax withheld 148,325.00 17,230.00 3 Social security wages 4 Social security tax withheld 119,825.00 8,239.80 5 Medicare wages and tips 6 Medicare tax withheld 137,825.00 1,998.46 7 Social Security tips 8 Allocated tips 872 Wayfair Avenue Beeson, WV, 24714 d Control number 9 Verification code 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Mark A. Wilson 286 Elm Drive Beeson, West Virginia 24714 13 Statutory employee Retirement En 12b Third-carty sick cay 14 Other 12c 12d 15 State f Employee's address and ZIP code Employer's state ID number w | 48763087-0 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, etc. 148,325.00 17 State income tax 7,900.00 Department of the TreasuryInternal Revenue Service Form W-2 Wage and Statement 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service