Question
Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents. Warner is the president of Jaystar Corporation
Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents.
Warner is the president of Jaystar Corporation located in Macon, Georgia. The Jaystar stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner's father.
Warner and Augustine received the following tax documents: 1) W-2 Form 2) Form 1099-INT 3) Form 1098 4) Letter from Macon Museum of Arts regarding their charitable contribution. These items are located on separate tabs.
The Robins paid the following amounts (all can be substantiated):
|
The Robins had total itemized deductions of $33,567 in 2019 which included a $9,600 state tax deduction.
The tax basis for the donated painting is $25,000 and the painting has been owned by Warner and Augustine for 5 years.
Jaystar does not cover health insurance for its employees. In addition to Warner and Augustine's health insurance premiums shown above, Augustine required surgery which cost $6,663 for which only $3,021 was covered by insurance. Warner had to drive Augustine 125 miles each way to a surgical center.
On January 1, 2020, Warner sold land to Jaystar Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction.
Jaystar Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $12,000 ($6,000 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work).
The Robins received a $2,400 EIP in 2020.
Required: Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started