Use the 2019 tax tables, available online

Instructions 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 Statement 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 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 Complete Form 2441 Note: When determining the taxpayer's income used on this form, consider the net earnings from Schedule C and the one-half self-employment tax deduction OM No. 1545-0024 Form 2441 Child and Dependent Care Expenses 10401 1040 Department of the Attach to Form 1040, 1040-SR, or 1040-NR. 2019 1040-NEN Treasury Internal Go to www.irs.gov/Form2441 for instructions and the latest 2441 Attachment Revenue Service (09) information. Sequence No. 21 Name(s) shown on return Your social security number Noah and Joan Arc 434-11-3311 You cannot claim a credit for child and dependent care expenses if your filing status is married filing separately unless you meet the requirements listed in the instructions under "Married Persons Filing Separately." If you meet these requirements, check this box. Part I Persons or Organizations Who Provided the Care - You must complete this part. (If you have more than two care providers, see the instructions.) 1 1 (a) care provider's (b) Address (c) Identifying number (d) Amount paid name (number, street, apt. no., city, state, and ZIP code) (SSN OG EIN) (see instructions) Roundup Day 245 N. Wikinson SL Care Center Dayton, OH 45402 54-0983456 Did you receive No Complete only Part II below. dependent care benefits? Yes Complete Part III on the back next. Caution: If the care was provided in your home, you may owe employment taxes. For details, see the instructions for Schedule 2 (Form 1040 or 1040-5R), line 7a: or Form 1040-NR, line 59a. Part II Credit for Child and Dependent Care Expenses 2 Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions. (a) Qualifying person's name (c) Qualified expenses you (b) Qualifying person's social incurred and paid in 2019 for the security number First Last person listed in column(a) Mary Sue Arc 554-33-2411 3 Add the amounts in column (c) of line 2. Don't enter more than $3,000 for one qualifying person or $6,000 for two or more persons. If you completed Part III, enter the amount from line 31 ........ 4 Enter your earned income. See instructions 5 If married filling jointly, enter your spouse's earned Income (If you or your spouse was a student or was disabled, see the instructions); all others, enter the amount from line 4 6 Enter the smallest of line 3, 4, or 5..... 5 6 7 Enter the amount from Form 1040 or 1040-SR, line 9b; or Form 1040-NR, line 35 ...... 7 B Enter on line 8 the decimal amount shown below that applies to the amount on line 7 If line 7 is: If line 7 is: But not over Decimal amount is But not over Decimal amount is Over Over $0-15,000 35 $29,000-31,000 31.000 33,000 27 26 -26 15,000-17,000 34 -33 33 -25 8 17,000-19.000 19,000-21,000 21,000-23.000 35 22,000 -25,000 25,000-27,000 32 31 24 22 23 .30 20 33,000-35,000 35,000-37,000 37,000-39,000 29.00 39,000 -41,000 41,000-43,000 43,000-No limit 22 -29 -21 27,000-29,000 .28 20 9 Multiply line 6 by the decimal amount on line 8. If you paid 2018 expenses in 2019, see the instructions 10 Tax liability limit. Enter the amount from the Credit Limit Worksheet in the instructions .......... 10 11 Credit for child and dependent care expenses. Enter the smaller of line or line 10 here and on Schedule 3 (Form 1040 or 1040-SR], line 2; or Form 1040-NR, line 47.... 11 For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 11862M Form 2441 (2019) Supplemental Income and Loss SCHEDULE E OMB No. 1545-0074 (Form 1040 or 1040 SR) (From rental real estate, royalties, partnerships, Scorporations, estates, 2019 trusts, REMICS, etc. Department of the Treasury Attach to Form 1040, 1040-5R, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Sequence No. 13 Go to www.irs.gov/Schedule for instructions and the latest information. Name(s) shown on ratum Your social security number Noah and Joan Arc 434-11-3311 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 10997 (see Instructions) Yes NO B If Yes," did you or will you file required forms 1099? Yes No la Physical address of each property (street, city, state, ZIP Code) A 16 Oakwood Ave., Unit A, Dayton, OH 45409 B 1b Type of Property (from list below) Fair Rental Days Personal Use Days QJV A 2 For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified Joint venture. See Instructions. A A B D C 3 Vacation/Short-Term Rental 5 Land Type of Property: 1 Single Family Residence 2 Multi-Family Residence Income: 7 Self-Rental 8 Other (describe 4 Commercial 6 Royalties Properties: A 3 3 Rents received 4 Royalties received Expenses: 5 Advertising Auto and travel (see instructions) 7 cleaning and maintenance 5 6 6 7 8 Commissions.. 9 Insurance. 10 Legal and other professional fees 10 11 Management res... 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 13 Other interest 13 14 Repairs 14 15 Supplies 15 16 Taxes 16 17 utilities. 17 18 Depreciation expense or depletion 18 19 Other (list) Miscellaneous 19 20 Total expenses. Add lines 5 through 19........... 20 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a class), see instructions to find out if you must file Forn 6198 21 Deductible rental real estate lass after limitation, if any, Form 8562 (see instructions).... 22 Ols 23a Total of all amounts reported on line 3 for all rental properties. 23a b Total of all amounts reported on line 4 for all royalty properties 23b Total of all amounts reported on line 12 for all properties.. 23c d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported on line 20 for all properties... 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-5R), line 5, or Form 1040-NR, line 16. Otherwise, include this amount in the total on line 41 on page 2. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule (Form 1040 or 1040-SR) 2019 26 Schedule E (Form 1040 or 1040-SR) 2019 Attachment Sequence No. 13 Page 2 Name(s) shown on return. Do not enter name and social security number if shown on other side. Your social security number Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part II Income or Loss From Partnerships and S Corporations - Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198 (see instructions). 27 Are you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered "Yes," see instructions before completing this section .... Yes No 28 (a) Name (b) Enter P for partnership; S for S corporation (c) Check if foreign partnership (d) Employer identification number (e) Check if basis computation is required (f) Check if any amount is not at risk B O D Passive Income and Loss Nonpassive Income and Loss (9) Passive loss allowed (attach Form 8582 if required) (h) Passive income from Schedule K-1 (i) Nonpassive loss allowed (see Schedule K-1) (1) Section 179 expense deduction from Form 4562 (k) Nonpassive income from Schedule K-1 B D 29a Totals b Totals 30 31 0 30 Add columns (h) and (k) of line 29a 31 Add columns (9), 0), and () of line 295 32 Total partnership and S corporation income or (loss). Combine lines 30 and 31 Part III Income or Loss From Estates and Trusts 32 33 (a) Name (b) Employer identification number A B Passive Income and Loss Nonpassive Income and Loss (c) Passive deduction or loss allowed (attach Form 8582 if required) (d) Passive income from Schedule K-1 (e) Deduction or loss from Schedule K-1 (f) Other income from Schedule K-1 A B 34a Totals b Totals 35 Add columns (d) and (f) of line 34a 35 36 Add columns (c) and (e) of line 34 36 37 Total estate and trust income or (loss). Combine lines 35 and 36 37 Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)-Residual Holder (c) Excess inclusion from (b) Employer identification (d) Taxable income (net (e) Income from 38 (a) Name Schedules Q, line 2c (see loss) from Schedules Q, number Schedules Q, line 3b instructions) line 1b 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 Part V Summary 40 Net farm rental income or loss) from Form 4835. Also, complete line 42 below 40 41 Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18 41 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120-5), box 17, code AC; and Schedule K-1 (Form 1041), box 14, code F (see instructions).. 42 43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or loss) you reported anywhere on Form 1040, Form 1040-SR, or Form 1040-NR from all rental real estate activities in which you materially participated under the passive activity loss rules 43 Schedule E (Form 1040 or 1040-SR) 2019 Complete the Arc's Child Tax Credit Worksheet. If the form instructs you to leave a box blank, leave it blank. However, if the answer is zero, enter "0". Enter all amounts as positive numbers. 2019 Child Tax Credit and credit for Other Dependents Worksheet-Line 13a Keep for Your Records CAUTION 1. To be a qualifying child for the child tax credit, the child must be your dependent, under age 17 at the end of 2019, and meet all the conditions in Steps 1 through 3 under Who Qualifies as Your Dependent. Make sure you checked the "child tax credit" box in column (4) of the Dependents section on Form 1040 or 1040-SR for each qualifying child. 2. If you don't have a qualifying child, you can't claim the child tax credit; but you may be able to claim the credit for other dependents for that child. See Step 3 under Who Qualifies as Your Dependent. 3. To see your qualifying relative qualifies you to take the credit for other dependents, see Step 5 under Who Qualifies as Your Dependent. 4. Be sure to see Social security number under Who Qualifies as Your Dependent. 5. Do not use this worksheet, but use Pub. 972 instead, if: a. You are claiming the adoption credit, mortgage interest credit, District of Columbia first-time homebuyer credit, or residential energy efficient property credit*; b. You are excluding income from Puerto Rico; or c. You are filing Form 2555 or 4563. *If applicable. Part 1 1. Number of qualifying children under age 17 with the required social security number: X $2,000. Enter the result. 1 2. Number of other dependents, including qualifying children without the required social security number:__ $500. Enter the result. Caution. Don't include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, don't include anyone you included on line 1. 3. Add lines 1 and 2. 3 4. Enter the amount from Form 1040 or 1040-SR, line 8b. 4 5. Enter the amount shown below for your filing status. Married filing jointly $400,000 All other filing statuses $200,000 5 6. Is the amount on line 4 more than the amount on line 5? No. Leave line 6 blank. Enter -- on line 7, and go to line 8. 6 Yes. Subtract line 5 from line 4. If the result isn't a multiple of $1,000, increase it to the next multiple of $1,000. For example, increase $425 to $1,000, increase $1,025 to $2,000, etc. 7. Multiply the amount on line 6 by 5% (0.05). Enter the result. 7 8. Is the amount on line 3 more than the amount on line 7? STOP No. You can't take the child tax credit on Form 1040 or 1040- SR, line 13a. You can't take the tional credit on Form 1040 or 1040-SR, line 18b. Complete the rest of your Form 1040 or 1040-SR. Yes. Subtract line 7 from line 3. Enter the result. Go to Part 2 8 2019 Child Tax Credit and Credit for Other Dependents Worksheet-Continued Keep for Your Records Before you begin Figure the amount of any credits you are claiming on Schedule 3; Form 5695, Part II*; Form 8910; Form 8936; or Schedule R. Part 2: Part 2 9. Enter the amount from Form 1040 or 1040-SR, line 12b. 9 10. Add any amounts from: Schedule 3, line 1 Schedule 3, line 2 + Schedule 3, line 3+ Schedule 3, line 4 + , 4 + Form 5695, line 30+ Form 8910, line 15+ Form 8936, line 23 + Schedule R, line 22 + Enter the total. 10 11. Are the amounts on lines 9 and 10 the same? STOP Yes. You can't take this credit because there is no tax to reduce. However, you may be able to take the additional child tax credit if line 1 is more than zero See the TIP below. No. Subtract line 10 from line 9. 11 12. Is the amount on line 8 more than the amount on line 11? 12 Yes. Enter the amount from line 11. Also, you may be able to take the additional child tax credit if line 1 is more than zero. See the TIP below. . No. Enter the amount from line 8. } This is your child tax credit and credit for other dependents. Enter this amount on Form 1040 or 1040-SR line 13 1040 1040-SR or TIP You may be able to take the additional child tax credit on Form 1040 or 1040-SR, line 18b, if you answered "Yes" on line 11 or line 12 above. . First, complete your Form 1040 or 1040-SR through line 182 (also complete Schedule 3, line 11). , Then, use Schedule 8812 to figure any additional child tax credit. If your child tax credit or additional child tax credit for a year after 2015 was reduced or disallowed, see Form 8862, who must file to find GAUTION out if you must file Form 8862 to take the credit for 2019. "if applicable. Note: When determining the taxpayer's income used on this form, consider wages, the net earnings from Schedule and the one-half self- employment tax deduction } SCHEDULE 8812 OMB No. 1545-0074 (Form 1040 or 1040 SR) Additional Child Tax Credit 1040 2019 Attach to Form 1040, 1040-SR, or 1040-NR. Department of the Treasury Go to www.lrs.gov/Schedule8812 for instructions and the Attachment 8812 Internal Revenue Service (99) latest information. Sequence No. 47 Name(s) shown on return Your social security number Noah and Joan Arc 434-11-3311 Part I All Filers Caution: If you file Form 2555, stop here; you cannot daim the additional child tax credit. 1 If you are required to use the worksheet in Pub. 972, enter the amount from line 10 of the Child Tax Credit and credit for Other Dependents Worksheet in the publication. Otherwise: 1040 and Enter the amount from line 8 of your Child Tax Credit and Credit for Other 1040-SR filers: Dependents Workshont (see the instructions for Forms 1040 and 1040-SR, line 13a). 1 1010-NR filers: Enter the amount from line 3 of your Child Tax Credit and Credit for other Dependents Worksheet (see the instructions for Form 1040-NR, line 49). 2 Enter the amount from Form 1040, line 13a; Form 10-40-SR, line 12e; or Form 1040-NR, line 49 ...... 2 3 Subtract line 2 from line 1. If zero, stop here; you cannot claim this credit. .... 3 3 4 Number of qualifying children under 17 with the required social security number X $1,400 Enter the result. If zero, stop here; you cannot daim this credit .................... 4 TIP: The number of children you use for this line is the same as the number of children you used for line 1 of the Child Tax Credit and credit for Other Dependents Worksheet. 5 Enter the smaller of line 3 or line 4 5 6a Carned income (see instructions) b Nontaxable combat pay (see instructions) 6b | 7 is the amount online a more than $2,5002 No. Leave line 7 blank and enter -- on line 8. Yes. Subtract $2,500 from the amount on line 6a. Enter the result 7 8 Multiply the amount on line 7 by 15% (0.15) and enter the result 9 Next. On line 4, is the amount $4,200 or more? No. If line 9 is zero, stop here: you cannot claim this credit. Otherwise, skip Part II and enter the smallar of line 5 or line 3 on line 15. Yes. If line is equal to or more than line 5, skip Part II and enter the amount from line 5 on line 15. Otherwise, go to line 9. 9 } 10 Part 11 Certain Filers Who Have Three or More Qualifying Children 9 Withheld social security, Medicare, and Additional Medicare taxes from Form(s) w 2, boxes 1 and o. If married filing jointly, include your spouse's amounts with yours. If your employer withheld or you pald Additional Medicare Tax or tier 1 RRTA taxes, see instructions...... 10 1040 and Enter the total of the amounts from Schedule 1 1040-SR filers: (Form 1040 or 1040-SR), line 11, and Schedule 2 (Form 1040 or 1040-SR), line 5, plus any taxes that you identified using code "UT" and entered on Schedule 2 (Form 1010 or 1040-5R), line 8. 1040-NR filers: Enter the total of the amounts from Form 1040-NR, lines 27 and 56, plus any taxes that you identified using code "ur" and entered on line 60. 11 Add lines 9 and 10 12 1040 and Enter the total of the amounts from Form 1040 1040-SR filers: or 1040 SR, line 18a, and Schedule 3 (Form 1040 or 1040-5R), line 11 . 1040-NR filers: Enter the amount from Form 1040-NR, line 67 13 Subtract line 12 from line 11. If zero or less, enter-O-. 14 Enter the larger of line 8 or line 13.. Next, enter the smaller of line 5 or line 14 on line 15. Part III Additional Child Tax Credit 15 This is your additional child tax credit 11 } 12 13 14 15 Enter this amount on Form 2040, Ang Ibb, Form:09 SR, une bar Form 1040 Nine 68 10400 Cat. No. 59761M Schedule 8612 (Form 1040 or 1040 SR) 2019 For Paperwork Reduction Act Notice, see your tax return instructions. Comp problem 1 Complete Form 4562. The depreciation factor from the tables is 0.03636 Form 4562 OMB No. 1545-0172 Depreciation and Amortization (Including Information on Listed Property) 2019 Department of the Treasury Attach to your tax retum. Attachment Internal Revenue Service (99) Go to www.irs.gov/Form362 for instructions and the latest information. Sequence No. 170 Namos) shown on retum Business or activity to which this form relatos Identifying number Nuah and Juan Arc Rental Property 434-11-3311 Part I Flection To Expense Certain Property Linder Section 179 Note: If you have any listed property, complete Part V hefore you complete Part 1 1 Maximum amount ( Instructions)................... 1 1 2 Total cost of section 179 property placed in service (sce instructions) ....... 2 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 3 4 Reduction in limitation. Subtract lines from line 2. if zaro or less, anter-O-. 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions....................................................... 5 (a) Description of property (b) Cost (business use only) (c) Elected cost 4 7 Listed property. Enter the amount from line 29... 1 a Total elected cost of section 179 property. Add amounts in column (C), lines 6 and 7. Tentative deduction. Enter the smaller of line 5 or line 8........... 10 Carryover of disallowed deduction from line 13 of your 2018 Form1502 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 170 expense deduction. Add lines 0 and 10, but don't enter more than line 11 12 13 Carryover of disallowed deduction to 2020. Add lines 9 and 10, less line 2 , 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part v. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Spedal depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions 15 Property subject to section 168(P)(1) clection 15 16 Other depreciation (Induding ACRS) .......... 16 Part II MACRS Depreciation (Don't include listed property. See Instructions.) Section A 17 MARS deductions for Assets placed in service in tax years beginning before 2019... 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check her... ........................................................ Section B-Assets placed in Service During 2019 Tax Year Using the General Depreciation System (6) Month and (c) Basis for depreciation (a) Classification of year pisced in (d) Recovery (a) Depreciation (business/investment us (e) Convention (f) Method property period deduction service only see instructions) 19a 3-year property b 5-year property 7-year property d 10-year property e 15-year property 1 20-year property g 25-year property h Residential rental property SIL 25 yrs. 27.5 y MM S/L 27.5 yrs. MM SAL 39 yrs. MM S/L i Nonresidential real property MM SIL Section C-Assets placed in Service During 2019 Tax Year Using the Alternative Depreciation System 200 Classe S/L 21 b 12-year 12 yrs. SL C 30 year - 30 yrs. MM MM SAL d 40-year 40 yrs. MM SYL Part IV Summary (See Instructions.) 21 Listed property. Enter amount from line 20 ... 22 Total. Add amounts from line 12, lines 14 through 17, lines 10 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and 5 corporations see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A custs 23 For Paperwork Reduction Act Notice, see separate instructions. Cat No. 1290DN 22 Form 4502 (2019) Form 8995 Complete Form 8995. OMB No. XXXX-XXXX Form 8995 Qualified Business Income Deduction Simplified Computation Attach to your tax return. Go to www.irs.gov/Form8995 for instructions and the latest information. 2019 Attachment Sequence No. 55 Department of the Treasury Internal Revenue Service Name(s) shown on return Noah and Joan Arc Your taxpayer identification number 434-11-3311 1 (a) Trade, business, or aggregation name (b) Taxpayer identification number (c) Qualified business income or (loss) 1 The Arc 95-9876556 ii iii iv V 2 2 Total qualified business income or (loss). Combine lines li through 1v, column (C)... 3 Qualified business net (loss) carryforward from the prior year 4 Total qualified business income. Combine lines 2 and 3. If zero or less, enter-O-.... 3 ( 4 5 5 6 Qualified business income component. Multiply line 4 by 20% (0.20) Qualified REIT dividends and publicly traded partnership (PTP) income or (loss) (see instructions) Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year .. Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, 6 7 7 ( 8 enter -0-...... 8 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 9 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 10 11 Taxable income before qualified business income deduction 11 12 Net capital gain (see instructions). 12 13 Subtract line 12 from line 11. If zero or less, enter-O- 13 14 15 14 Income limitation. Multiply line 13 by 20% (0.20) 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return... 16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter-O- 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, enter -0........ For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 37806C 16 17 Form 8995 (2019) Instructions 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 Statement 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 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 Complete Form 2441 Note: When determining the taxpayer's income used on this form, consider the net earnings from Schedule C and the one-half self-employment tax deduction OM No. 1545-0024 Form 2441 Child and Dependent Care Expenses 10401 1040 Department of the Attach to Form 1040, 1040-SR, or 1040-NR. 2019 1040-NEN Treasury Internal Go to www.irs.gov/Form2441 for instructions and the latest 2441 Attachment Revenue Service (09) information. Sequence No. 21 Name(s) shown on return Your social security number Noah and Joan Arc 434-11-3311 You cannot claim a credit for child and dependent care expenses if your filing status is married filing separately unless you meet the requirements listed in the instructions under "Married Persons Filing Separately." If you meet these requirements, check this box. Part I Persons or Organizations Who Provided the Care - You must complete this part. (If you have more than two care providers, see the instructions.) 1 1 (a) care provider's (b) Address (c) Identifying number (d) Amount paid name (number, street, apt. no., city, state, and ZIP code) (SSN OG EIN) (see instructions) Roundup Day 245 N. Wikinson SL Care Center Dayton, OH 45402 54-0983456 Did you receive No Complete only Part II below. dependent care benefits? Yes Complete Part III on the back next. Caution: If the care was provided in your home, you may owe employment taxes. For details, see the instructions for Schedule 2 (Form 1040 or 1040-5R), line 7a: or Form 1040-NR, line 59a. Part II Credit for Child and Dependent Care Expenses 2 Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions. (a) Qualifying person's name (c) Qualified expenses you (b) Qualifying person's social incurred and paid in 2019 for the security number First Last person listed in column(a) Mary Sue Arc 554-33-2411 3 Add the amounts in column (c) of line 2. Don't enter more than $3,000 for one qualifying person or $6,000 for two or more persons. If you completed Part III, enter the amount from line 31 ........ 4 Enter your earned income. See instructions 5 If married filling jointly, enter your spouse's earned Income (If you or your spouse was a student or was disabled, see the instructions); all others, enter the amount from line 4 6 Enter the smallest of line 3, 4, or 5..... 5 6 7 Enter the amount from Form 1040 or 1040-SR, line 9b; or Form 1040-NR, line 35 ...... 7 B Enter on line 8 the decimal amount shown below that applies to the amount on line 7 If line 7 is: If line 7 is: But not over Decimal amount is But not over Decimal amount is Over Over $0-15,000 35 $29,000-31,000 31.000 33,000 27 26 -26 15,000-17,000 34 -33 33 -25 8 17,000-19.000 19,000-21,000 21,000-23.000 35 22,000 -25,000 25,000-27,000 32 31 24 22 23 .30 20 33,000-35,000 35,000-37,000 37,000-39,000 29.00 39,000 -41,000 41,000-43,000 43,000-No limit 22 -29 -21 27,000-29,000 .28 20 9 Multiply line 6 by the decimal amount on line 8. If you paid 2018 expenses in 2019, see the instructions 10 Tax liability limit. Enter the amount from the Credit Limit Worksheet in the instructions .......... 10 11 Credit for child and dependent care expenses. Enter the smaller of line or line 10 here and on Schedule 3 (Form 1040 or 1040-SR], line 2; or Form 1040-NR, line 47.... 11 For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 11862M Form 2441 (2019) Supplemental Income and Loss SCHEDULE E OMB No. 1545-0074 (Form 1040 or 1040 SR) (From rental real estate, royalties, partnerships, Scorporations, estates, 2019 trusts, REMICS, etc. Department of the Treasury Attach to Form 1040, 1040-5R, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Sequence No. 13 Go to www.irs.gov/Schedule for instructions and the latest information. Name(s) shown on ratum Your social security number Noah and Joan Arc 434-11-3311 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 10997 (see Instructions) Yes NO B If Yes," did you or will you file required forms 1099? Yes No la Physical address of each property (street, city, state, ZIP Code) A 16 Oakwood Ave., Unit A, Dayton, OH 45409 B 1b Type of Property (from list below) Fair Rental Days Personal Use Days QJV A 2 For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified Joint venture. See Instructions. A A B D C 3 Vacation/Short-Term Rental 5 Land Type of Property: 1 Single Family Residence 2 Multi-Family Residence Income: 7 Self-Rental 8 Other (describe 4 Commercial 6 Royalties Properties: A 3 3 Rents received 4 Royalties received Expenses: 5 Advertising Auto and travel (see instructions) 7 cleaning and maintenance 5 6 6 7 8 Commissions.. 9 Insurance. 10 Legal and other professional fees 10 11 Management res... 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 13 Other interest 13 14 Repairs 14 15 Supplies 15 16 Taxes 16 17 utilities. 17 18 Depreciation expense or depletion 18 19 Other (list) Miscellaneous 19 20 Total expenses. Add lines 5 through 19........... 20 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a class), see instructions to find out if you must file Forn 6198 21 Deductible rental real estate lass after limitation, if any, Form 8562 (see instructions).... 22 Ols 23a Total of all amounts reported on line 3 for all rental properties. 23a b Total of all amounts reported on line 4 for all royalty properties 23b Total of all amounts reported on line 12 for all properties.. 23c d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported on line 20 for all properties... 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-5R), line 5, or Form 1040-NR, line 16. Otherwise, include this amount in the total on line 41 on page 2. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule (Form 1040 or 1040-SR) 2019 26 Schedule E (Form 1040 or 1040-SR) 2019 Attachment Sequence No. 13 Page 2 Name(s) shown on return. Do not enter name and social security number if shown on other side. Your social security number Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part II Income or Loss From Partnerships and S Corporations - Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198 (see instructions). 27 Are you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered "Yes," see instructions before completing this section .... Yes No 28 (a) Name (b) Enter P for partnership; S for S corporation (c) Check if foreign partnership (d) Employer identification number (e) Check if basis computation is required (f) Check if any amount is not at risk B O D Passive Income and Loss Nonpassive Income and Loss (9) Passive loss allowed (attach Form 8582 if required) (h) Passive income from Schedule K-1 (i) Nonpassive loss allowed (see Schedule K-1) (1) Section 179 expense deduction from Form 4562 (k) Nonpassive income from Schedule K-1 B D 29a Totals b Totals 30 31 0 30 Add columns (h) and (k) of line 29a 31 Add columns (9), 0), and () of line 295 32 Total partnership and S corporation income or (loss). Combine lines 30 and 31 Part III Income or Loss From Estates and Trusts 32 33 (a) Name (b) Employer identification number A B Passive Income and Loss Nonpassive Income and Loss (c) Passive deduction or loss allowed (attach Form 8582 if required) (d) Passive income from Schedule K-1 (e) Deduction or loss from Schedule K-1 (f) Other income from Schedule K-1 A B 34a Totals b Totals 35 Add columns (d) and (f) of line 34a 35 36 Add columns (c) and (e) of line 34 36 37 Total estate and trust income or (loss). Combine lines 35 and 36 37 Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)-Residual Holder (c) Excess inclusion from (b) Employer identification (d) Taxable income (net (e) Income from 38 (a) Name Schedules Q, line 2c (see loss) from Schedules Q, number Schedules Q, line 3b instructions) line 1b 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 Part V Summary 40 Net farm rental income or loss) from Form 4835. Also, complete line 42 below 40 41 Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18 41 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120-5), box 17, code AC; and Schedule K-1 (Form 1041), box 14, code F (see instructions).. 42 43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or loss) you reported anywhere on Form 1040, Form 1040-SR, or Form 1040-NR from all rental real estate activities in which you materially participated under the passive activity loss rules 43 Schedule E (Form 1040 or 1040-SR) 2019 Complete the Arc's Child Tax Credit Worksheet. If the form instructs you to leave a box blank, leave it blank. However, if the answer is zero, enter "0". Enter all amounts as positive numbers. 2019 Child Tax Credit and credit for Other Dependents Worksheet-Line 13a Keep for Your Records CAUTION 1. To be a qualifying child for the child tax credit, the child must be your dependent, under age 17 at the end of 2019, and meet all the conditions in Steps 1 through 3 under Who Qualifies as Your Dependent. Make sure you checked the "child tax credit" box in column (4) of the Dependents section on Form 1040 or 1040-SR for each qualifying child. 2. If you don't have a qualifying child, you can't claim the child tax credit; but you may be able to claim the credit for other dependents for that child. See Step 3 under Who Qualifies as Your Dependent. 3. To see your qualifying relative qualifies you to take the credit for other dependents, see Step 5 under Who Qualifies as Your Dependent. 4. Be sure to see Social security number under Who Qualifies as Your Dependent. 5. Do not use this worksheet, but use Pub. 972 instead, if: a. You are claiming the adoption credit, mortgage interest credit, District of Columbia first-time homebuyer credit, or residential energy efficient property credit*; b. You are excluding income from Puerto Rico; or c. You are filing Form 2555 or 4563. *If applicable. Part 1 1. Number of qualifying children under age 17 with the required social security number: X $2,000. Enter the result. 1 2. Number of other dependents, including qualifying children without the required social security number:__ $500. Enter the result. Caution. Don't include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, don't include anyone you included on line 1. 3. Add lines 1 and 2. 3 4. Enter the amount from Form 1040 or 1040-SR, line 8b. 4 5. Enter the amount shown below for your filing status. Married filing jointly $400,000 All other filing statuses $200,000 5 6. Is the amount on line 4 more than the amount on line 5? No. Leave line 6 blank. Enter -- on line 7, and go to line 8. 6 Yes. Subtract line 5 from line 4. If the result isn't a multiple of $1,000, increase it to the next multiple of $1,000. For example, increase $425 to $1,000, increase $1,025 to $2,000, etc. 7. Multiply the amount on line 6 by 5% (0.05). Enter the result. 7 8. Is the amount on line 3 more than the amount on line 7? STOP No. You can't take the child tax credit on Form 1040 or 1040- SR, line 13a. You can't take the tional credit on Form 1040 or 1040-SR, line 18b. Complete the rest of your Form 1040 or 1040-SR. Yes. Subtract line 7 from line 3. Enter the result. Go to Part 2 8 2019 Child Tax Credit and Credit for Other Dependents Worksheet-Continued Keep for Your Records Before you begin Figure the amount of any credits you are claiming on Schedule 3; Form 5695, Part II*; Form 8910; Form 8936; or Schedule R. Part 2: Part 2 9. Enter the amount from Form 1040 or 1040-SR, line 12b. 9 10. Add any amounts from: Schedule 3, line 1 Schedule 3, line 2 + Schedule 3, line 3+ Schedule 3, line 4 + , 4 + Form 5695, line 30+ Form 8910, line 15+ Form 8936, line 23 + Schedule R, line 22 + Enter the total. 10 11. Are the amounts on lines 9 and 10 the same? STOP Yes. You can't take this credit because there is no tax to reduce. However, you may be able to take the additional child tax credit if line 1 is more than zero See the TIP below. No. Subtract line 10 from line 9. 11 12. Is the amount on line 8 more than the amount on line 11? 12 Yes. Enter the amount from line 11. Also, you may be able to take the additional child tax credit if line 1 is more than zero. See the TIP below. . No. Enter the amount from line 8. } This is your child tax credit and credit for other dependents. Enter this amount on Form 1040 or 1040-SR line 13 1040 1040-SR or TIP You may be able to take the additional child tax credit on Form 1040 or 1040-SR, line 18b, if you answered "Yes" on line 11 or line 12 above. . First, complete your Form 1040 or 1040-SR through line 182 (also complete Schedule 3, line 11). , Then, use Schedule 8812 to figure any additional child tax credit. If your child tax credit or additional child tax credit for a year after 2015 was reduced or disallowed, see Form 8862, who must file to find GAUTION out if you must file Form 8862 to take the credit for 2019. "if applicable. Note: When determining the taxpayer's income used on this form, consider wages, the net earnings from Schedule and the one-half self- employment tax deduction } SCHEDULE 8812 OMB No. 1545-0074 (Form 1040 or 1040 SR) Additional Child Tax Credit 1040 2019 Attach to Form 1040, 1040-SR, or 1040-NR. Department of the Treasury Go to www.lrs.gov/Schedule8812 for instructions and the Attachment 8812 Internal Revenue Service (99) latest information. Sequence No. 47 Name(s) shown on return Your social security number Noah and Joan Arc 434-11-3311 Part I All Filers Caution: If you file Form 2555, stop here; you cannot daim the additional child tax credit. 1 If you are required to use the worksheet in Pub. 972, enter the amount from line 10 of the Child Tax Credit and credit for Other Dependents Worksheet in the publication. Otherwise: 1040 and Enter the amount from line 8 of your Child Tax Credit and Credit for Other 1040-SR filers: Dependents Workshont (see the instructions for Forms 1040 and 1040-SR, line 13a). 1 1010-NR filers: Enter the amount from line 3 of your Child Tax Credit and Credit for other Dependents Worksheet (see the instructions for Form 1040-NR, line 49). 2 Enter the amount from Form 1040, line 13a; Form 10-40-SR, line 12e; or Form 1040-NR, line 49 ...... 2 3 Subtract line 2 from line 1. If zero, stop here; you cannot claim this credit. .... 3 3 4 Number of qualifying children under 17 with the required social security number X $1,400 Enter the result. If zero, stop here; you cannot daim this credit .................... 4 TIP: The number of children you use for this line is the same as the number of children you used for line 1 of the Child Tax Credit and credit for Other Dependents Worksheet. 5 Enter the smaller of line 3 or line 4 5 6a Carned income (see instructions) b Nontaxable combat pay (see instructions) 6b | 7 is the amount online a more than $2,5002 No. Leave line 7 blank and enter -- on line 8. Yes. Subtract $2,500 from the amount on line 6a. Enter the result 7 8 Multiply the amount on line 7 by 15% (0.15) and enter the result 9 Next. On line 4, is the amount $4,200 or more? No. If line 9 is zero, stop here: you cannot claim this credit. Otherwise, skip Part II and enter the smallar of line 5 or line 3 on line 15. Yes. If line is equal to or more than line 5, skip Part II and enter the amount from line 5 on line 15. Otherwise, go to line 9. 9 } 10 Part 11 Certain Filers Who Have Three or More Qualifying Children 9 Withheld social security, Medicare, and Additional Medicare taxes from Form(s) w 2, boxes 1 and o. If married filing jointly, include your spouse's amounts with yours. If your employer withheld or you pald Additional Medicare Tax or tier 1 RRTA taxes, see instructions...... 10 1040 and Enter the total of the amounts from Schedule 1 1040-SR filers: (Form 1040 or 1040-SR), line 11, and Schedule 2 (Form 1040 or 1040-SR), line 5, plus any taxes that you identified using code "UT" and entered on Schedule 2 (Form 1010 or 1040-5R), line 8. 1040-NR filers: Enter the total of the amounts from Form 1040-NR, lines 27 and 56, plus any taxes that you identified using code "ur" and entered on line 60. 11 Add lines 9 and 10 12 1040 and Enter the total of the amounts from Form 1040 1040-SR filers: or 1040 SR, line 18a, and Schedule 3 (Form 1040 or 1040-5R), line 11 . 1040-NR filers: Enter the amount from Form 1040-NR, line 67 13 Subtract line 12 from line 11. If zero or less, enter-O-. 14 Enter the larger of line 8 or line 13.. Next, enter the smaller of line 5 or line 14 on line 15. Part III Additional Child Tax Credit 15 This is your additional child tax credit 11 } 12 13 14 15 Enter this amount on Form 2040, Ang Ibb, Form:09 SR, une bar Form 1040 Nine 68 10400 Cat. No. 59761M Schedule 8612 (Form 1040 or 1040 SR) 2019 For Paperwork Reduction Act Notice, see your tax return instructions. Comp problem 1 Complete Form 4562. The depreciation factor from the tables is 0.03636 Form 4562 OMB No. 1545-0172 Depreciation and Amortization (Including Information on Listed Property) 2019 Department of the Treasury Attach to your tax retum. Attachment Internal Revenue Service (99) Go to www.irs.gov/Form362 for instructions and the latest information. Sequence No. 170 Namos) shown on retum Business or activity to which this form relatos Identifying number Nuah and Juan Arc Rental Property 434-11-3311 Part I Flection To Expense Certain Property Linder Section 179 Note: If you have any listed property, complete Part V hefore you complete Part 1 1 Maximum amount ( Instructions)................... 1 1 2 Total cost of section 179 property placed in service (sce instructions) ....... 2 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 3 4 Reduction in limitation. Subtract lines from line 2. if zaro or less, anter-O-. 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions....................................................... 5 (a) Description of property (b) Cost (business use only) (c) Elected cost 4 7 Listed property. Enter the amount from line 29... 1 a Total elected cost of section 179 property. Add amounts in column (C), lines 6 and 7. Tentative deduction. Enter the smaller of line 5 or line 8........... 10 Carryover of disallowed deduction from line 13 of your 2018 Form1502 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 170 expense deduction. Add lines 0 and 10, but don't enter more than line 11 12 13 Carryover of disallowed deduction to 2020. Add lines 9 and 10, less line 2 , 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part v. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Spedal depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions 15 Property subject to section 168(P)(1) clection 15 16 Other depreciation (Induding ACRS) .......... 16 Part II MACRS Depreciation (Don't include listed property. See Instructions.) Section A 17 MARS deductions for Assets placed in service in tax years beginning before 2019... 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check her... ........................................................ Section B-Assets placed in Service During 2019 Tax Year Using the General Depreciation System (6) Month and (c) Basis for depreciation (a) Classification of year pisced in (d) Recovery (a) Depreciation (business/investment us (e) Convention (f) Method property period deduction service only see instructions) 19a 3-year property b 5-year property 7-year property d 10-year property e 15-year property 1 20-year property g 25-year property h Residential rental property SIL 25 yrs. 27.5 y MM S/L 27.5 yrs. MM SAL 39 yrs. MM S/L i Nonresidential real property MM SIL Section C-Assets placed in Service During 2019 Tax Year Using the Alternative Depreciation System 200 Classe S/L 21 b 12-year 12 yrs. SL C 30 year - 30 yrs. MM MM SAL d 40-year 40 yrs. MM SYL Part IV Summary (See Instructions.) 21 Listed property. Enter amount from line 20 ... 22 Total. Add amounts from line 12, lines 14 through 17, lines 10 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and 5 corporations see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A custs 23 For Paperwork Reduction Act Notice, see separate instructions. Cat No. 1290DN 22 Form 4502 (2019) Form 8995 Complete Form 8995. OMB No. XXXX-XXXX Form 8995 Qualified Business Income Deduction Simplified Computation Attach to your tax return. Go to www.irs.gov/Form8995 for instructions and the latest information. 2019 Attachment Sequence No. 55 Department of the Treasury Internal Revenue Service Name(s) shown on return Noah and Joan Arc Your taxpayer identification number 434-11-3311 1 (a) Trade, business, or aggregation name (b) Taxpayer identification number (c) Qualified business income or (loss) 1 The Arc 95-9876556 ii iii iv V 2 2 Total qualified business income or (loss). Combine lines li through 1v, column (C)... 3 Qualified business net (loss) carryforward from the prior year 4 Total qualified business income. Combine lines 2 and 3. If zero or less, enter-O-.... 3 ( 4 5 5 6 Qualified business income component. Multiply line 4 by 20% (0.20) Qualified REIT dividends and publicly traded partnership (PTP) income or (loss) (see instructions) Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year .. Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, 6 7 7 ( 8 enter -0-...... 8 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 9 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 10 11 Taxable income before qualified business income deduction 11 12 Net capital gain (see instructions). 12 13 Subtract line 12 from line 11. If zero or less, enter-O- 13 14 15 14 Income limitation. Multiply line 13 by 20% (0.20) 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return... 16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter-O- 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, enter -0........ For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 37806C 16 17 Form 8995 (2019)