Using 2019 IRS forms and the information below, William is 53 and Joyce is 51. They are married. William is a manager for ABC Corporation, a firm that manufactures and distributes widgets. Joyce is a self-employed author of childrens books. The taxpayer wish to minimize their tax by deferring income and accelerating deductions when possible.

1.the taxpayers received the following interest payments: XYZ Bank $ 50 New York State Bonds 600 New York City Bonds 1,300 Puerto Rico Bonds 500 Ford Motor Co. Bonds 1,000

2.Joyce and her brother are co-owners of and active participants in a furniture-restoration business. Joyce owns 30 percent and her brother owns 70 percent of the business. The business was formed as an S corporation. The basis of Joyces stock is $31,000. Joyces share of the corporations loss for the year is $5,000.

3.The Joness received a federal income tax refund of $1,200 on May 12, 2019. On May 15 they received a refund from the District of Columbia for $900 which they did not deduct on the preceding years return.