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. Joyce is the lucky caller to a local radio station and wins a tablet. She has not received a 1099-MISC, but in announcing the prize, the radio station host said that the manufacturers suggested retail price for the tablet is $500. However, Joyce has a catalog from Best Buy that advertises the tablet for $400.

2. The Joness receive a Form W-2G for their winnings at a local casino showing gross winnings of $5,000 and $1,500 of withholding tax. Joyce lost $6,000 at the casino during the year.

3. On June 26, William receives a check for $17,000 (face value of $16,500 plus $500 interest) from the United Insurance Corporation, as a result of being the designated beneficiary of an insurance policy on the life of his uncle. His uncle had paid a premium on the policy of $4,000.