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Use the following information to complete Ginger Snaps 2019 tax return. The following forms and schedules to complete the project: Form 1040 (including Schedules 1,

Use the following information to complete Ginger Snaps 2019 tax return. The following forms and schedules to complete the project: Form 1040 (including Schedules 1, 2, and 3), Schedule A, Schedule C, Schedule D, Schedule E, Schedule SE, and Form 4562. Do not complete any forms other than the ones listed (even if the form instructions instruct you to fill out additional forms).1. Ginger Snap is single and has one child from her previous marriage, Jenna. Jenna lives with Ginger and Ginger provides more than half of her support. Jenna lived with Ginger for the entire year. Ginger provides you with the following additional information:

  • Ginger uses the cash method of accounting and a calendar year for reporting.
  • Ginger wishes to contribute to the presidential election campaign.
  • Ginger lives at 72 Zimmerman Blvd., Buffalo, New York 14223.
  • Gingers birthday is 5/31/1980 and her Social Security number is 333-45-6666.
  • Jennas birthday is 10/5/2010 and her Social Security number is 566-77-8888
  • Ginger does not have any foreign bank accounts or trusts.
  • Ginger will file as Head of Household for 2019. 2. Ginger is employed as a financial consultant with ABC Financial Experts, Inc. Her annual salary is $62,997. Gingers pay stubs indicate that she has $7,230 withheld in federal taxes and $4,987 withheld in state taxes. 3. Ginger owns several investments. She received a statement from her brokerage firm reporting interest and dividends earned on the investments. She also received a statement showing h0w much interest SHE PAID during the year on her home mortgage.

[(Dividends Ginger RECEIVED (General Dynamics Gross dividends $400 (ordinary and qualified)))]

[Interest Ginger RECEIVED (State of New York Gross interest $300) (IBM bonds Gross interest 700)(State of Kentucky bonds Gross interest $200)

[(Interest Ginger PAID (Sunbelt Credit Union Mortgage interest $7,100)]

4. Ginger also owns 1,000 shares of Grubstake Mining and Development common stock. Grubstake (ID # 45-45678900) is organized as an S Corporation and has 100,000 shares outstanding. Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share. Ginger does not materially participate in Grubstakes activities. Ginger received a K-1 from Grubstake.5. Ginger received a Form 1099-B from her broker for the sale of the following securities:

Security

Sale Date

Purchase Date

Sales Price

Gingers Basis

New York bonds

3/14/19

10/22/13

$2,140

$1,890

Cassill Corp (500 shares)

10/20/19

2/19/18

$8,075

$9,760

6. In addition to the taxes withheld from her salary, also made timely estimated federal tax payments of $175 per quarter and timely estimated state income tax payments of $150 per quarter. All payments were made in 2019. 7. In August 2019, Ginger received a federal refund of $180 and a state refund of $60, both related to her 2018 tax returns. Ginger took the standard deduction in 2018. 8. Gingers father died in October, 2018. From her fathers estate, she received her fathers house valued at $90,000 (his basis in the house was $55,000). Local practice is to allocate 12 percent of the fair market value of the property to the land (you will need this information in order to calculate Gingers basis in the house and land). See #9 below. 9. Ginger found a renter for her fathers house on January 1, 2019. Ginger received a total of $9,600 in rental payments in 2019. Ginger provides you with the following additional information for the rental in 2019:

Property taxes

$1,550

Other maintenance expenses

500

Repair expenses

300

Insurance expense

1,000

Management fee

700

Depreciation (to be computed)

???

The rental property is located at 35 Harvest Street, Orono, Maine 04473. Ginger makes all the decisions with respect to the property.10. Ginger paid $4,050 in real estate taxes on her principal residence.11. Ginger incurred the following unreimbursed medical costs:

Dentist

$ 310

Doctor

390

Prescription drugs

215

Over-the-counter drugs

140

Optometrist

125

Emergency room charges

440

LASIK eye surgery

2,000

Chiropractor

265

12. On May 14, 2019, Ginger contributed clothing to the Salvation Army. The original cost of the clothing was $740. She has substantiation valuing the donation at $360. The Salvation Army is located at 350 Stone Ridge Road, Buffalo, New York 14150. In addition, she made the following cash contributions:

Larkin College

$ 850

United Way

125

First Methodist Church

8,790

Amos House (homeless shelter)

200

* Assume all of the above are qualifying charities.13. Ginger sells real estate in the evening and on weekends (considered an active trade or business). She runs her business from a rental office she shares with several other realtors (692 River Road, Buffalo, New York 14223. The name of her business is Snap Real Estate and the Federal Identification Number of the business is 05-8799561. Her business code is 531210. Ginger has been operating in a business-like way since 2008 and has always shown a profit. She had the following income and expenses from her business:

Commissions earned

$21,250

Expenses:

Advertising

2,200

Telephone

95

Real estate license

130

Rent

6,000

Utilities

868

Ginger uses her automobile, an Acura TL, in her business since July 1, 2018. During 2019, she property documented 6,000 business miles. The total mileage on her car (i.e., business-and-personal-use miles) during the year was 15,000 In 2019, Ginger elects to use the standard mileage method to calculate her car expenses. She also spent $45 on tolls and $135 on parking related to the real estate business.14. Ginger has qualifying health insurance for both herself and Jenna for all of 2019.

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