We are to fill out a Schedule B tax form to turn in, I have already completed the 1040 portion but need help with the schedule B.

SCHEDULE B (Rev. January 2017) Department of the Treasury Internal Revenue Service (99) OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040A or 1040) a Information a Attach to Form 1040A or 1040. about Schedule B and its instructions is at www.irs.gov/scheduleb. Name(s) shown on return Part I 1 Interest Part II Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. Also, show that buyer's social security number and address a (See instructions on back and the instructions for Form 1040A, or Form 1040, line 8a.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 2016 Attachment Sequence No. 08 Your social security number 1 2 3 Add the amounts on line 1 . . . . . . . . . . Excludable interest on series EE and I U.S. savings Attach Form 8815 . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and 1040, line 8a . . . . . . . . . . . . . . Note: If line 4 is over $1,500, you must complete Part III. List name of payer a 5 . . . . . . . . bonds issued after 1989. . . . . . . . . on Form 1040A, or Form . . . . . . . . a 2 3 4 Amount Ordinary Dividends (See instructions on back and the instructions for Form 1040A, or Form 1040, line 9a.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Part III Foreign Accounts and Trusts (See instructions on back.) 5 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 6 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . a Note: If line 6 is over $1,500, you must complete Part III. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. 7a Yes No At any time during 2016, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . . . . . . b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located a 8 During 2016, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If \"Yes,\" you may have to file Form 3520. See instructions on back . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040A or 1040) 2016 Page 2 Schedule B (Form 1040A or 1040) 2016 General Instructions Future Developments For the latest information about developments related to Schedule B (Form 1040A or 1040) and its instructions, such as legislation enacted after they were published, go to www.irs.gov/scheduleb. What's New The due date for filing FinCEN Form 114 has changed. See below. Purpose of Form Use Schedule B if any of the following applies. You had over $1,500 of taxable interest or ordinary dividends. You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. You have accrued interest from a bond. You are reporting original issue discount (OID) of less than the amount shown on Form 1099-OID. You are reducing your interest income on a bond by the amount of amortizable bond premium. You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. You received interest or ordinary dividends as a nominee. You had a financial interest in, or signature authority over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Specific Instructions You can list more than one payer on each entry space for lines 1 and 5, but be sure to clearly show the amount paid next to the payer's name. Add the separate amounts paid by the payers listed on an entry space and enter the total in the \"Amount\" column. If you still need more space, attach separate statements using the same format as lines 1 and 5, but show your totals on Schedule B. Put your name and social security number (SSN) on the statements and attach them at the end of your return. TIP Part I. Interest Line 1. Report on line 1 all of your taxable interest. Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. Include interest from series EE, H, HH, and I U.S. savings bonds. Also include any accrued market discount that is includible in income. List each payer's name and show the amount. Don't report on this line any tax-exempt interest from box 8 or box 9 of Form 1099-INT. Instead, report the amount from box 8 on line 8b of Form 1040A or 1040. If an amount is shown in box 9 of Form 1099-INT, you generally must report it on line 12 of Form 6251. See the Instructions for Form 6251 for more details. For more information on market discount and other investment income, see Pub. 550. Seller-financed mortgages. If you sold your home or other property and the buyer used the property as a personal residence, list first any interest the buyer paid you on a mortgage or other form of seller financing. Be sure to show the buyer's name, address, and SSN. You must also let the buyer know your SSN. If you don't show the buyer's name, address, and SSN, or let the buyer know your SSN, you may have to pay a $50 penalty. Nominees. If you received a Form 1099-INT that includes interest you received as a nominee (that is, in your name, but the interest actually belongs to someone else), report the total on line 1. Do this even if you later distributed some or all of this income to others. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, enter \"Nominee Distribution\" and show the total interest you received as a nominee. Subtract this amount from the subtotal and enter the result on line 2. If you received interest as a nominee, you must give the actual owner a Form 1099-INT (unless the owner is your spouse) and file Forms 1096 and 1099-INT with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Forms 1099-INT and 1099-OID. TIP Accrued interest. When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller. If you received a Form 1099 for interest as a purchaser of a bond with accrued interest, follow the rules earlier under Nominees to see how to report the accrued interest. But identify the amount to be subtracted as \"Accrued Interest.\" Original issue discount (OID). If you are reporting OID in an amount less than the amount shown on Form 1099-OID, follow the rules earlier under Nominees to see how to report the OID. But identify the amount to be subtracted as \"OID Adjustment.\" Amortizable bond premium. If you are reducing your interest income on a bond by the amount of amortizable bond premium, follow the rules earlier under Nominees to see how to report the interest. But identify the amount to be subtracted as \"ABP Adjustment.\" Line 3. If, during 2016, you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher education expenses for yourself, your spouse, or your dependents, you may be able to exclude part or all of the interest on those bonds. See Form 8815 for details. Part II. Ordinary Dividends You may have to file Form 5471 if, in 2016, you were an officer or director of a foreign corporation. You may also have to file Form 5471 if, in 2016, you owned 10% or more of the total (a) value of a foreign corporation's stock, or (b) combined voting power of all classes of a foreign corporation's stock with voting rights. For details, see Form 5471 and its instructions. TIP Line 5. Report on line 5 all of your ordinary dividends. This amount should be shown in box 1a of your Forms 1099-DIV or substitute statements. Nominees. If you received a Form 1099-DIV that includes ordinary dividends you received as a nominee (that is, in your name, but the ordinary dividends actually belong to someone else), report the total on line 5. Do this even if you later distributed some or all of this income to others. Under your last entry on line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal, enter \"Nominee Distribution\" and show the total ordinary dividends you received as a nominee. Subtract this amount from the subtotal and enter the result on line 6. If you received dividends as a nominee, you must give the actual owner a Form 1099-DIV (unless the owner is your spouse) and file Forms 1096 and 1099-DIV with the IRS. For more details, see the General Instructions for Certain Information Returns and the Instructions for Form 1099-DIV. TIP Part III. Foreign Accounts and Trusts Regardless of whether you are required to file FinCEN Form 114 (FBAR), you may be required to file Form 8938, Statement of Specified Foreign Financial Assets, with your income tax return. Failure to file Form 8938 may result in penalties and extension of the statute of limitations. See www.irs.gov/form8938 for more information. TIP Line 7a-Question 1. Check the \"Yes\" box if at any time during 2016 you had a financial interest in or signature authority over a financial account located in a foreign country. See the definitions that follow. Check the \"Yes\" box even if you aren't required to file FinCEN Form 114. Financial account. A financial account includes, but isn't limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value, and shares in a mutual fund or similar pooled fund (that is, a fund that is available to the general public with a regular net asset value determination and regular redemptions). Financial account located in a foreign country. A financial account is located in a foreign country if the account is physically located outside of the United States. For example, an account maintained with a branch of a United States bank that is physically located outside of the United States is a foreign financial account. An account maintained with a branch of a foreign bank that is physically located in the United States isn't a foreign financial account. Signature authority. Signature authority is the authority of an individual (alone or in conjunction with another individual) to control the disposition of assets held in a foreign financial account by direct communication (whether in writing or otherwise) to the bank or other financial institution that maintains the financial account. See the FinCEN Form 114 instructions for exceptions. Don't consider the exceptions relating to signature authority in answering Question 1 on line 7a. Other definitions. For definitions of \"financial interest,\" \"United States,\" and other relevant terms, see the instructions for FinCEN Form 114. Line 7a-Question 2. See FinCEN Form 114 and its instructions at www.fincen.gov/fbar to determine whether you must file the form. Check the \"Yes\" box if you are required to file the form; check the \"No\" box if you aren't required to file the form. If you checked the \"Yes\" box to Question 2 on line 7a, you must electronically file FinCEN Form 114 with Treasury's Financial Crimes Enforcement Network; go to www.fincen.gov/fbar for details. Do not attach FinCEN Form 114 to your tax return. FinCEN Form 114 for 2016 is now generally due April 18, 2017, but FinCEN is providing an automatic extension for all filers until October 16, 2017. See www.fincen.gov for details. ! F If you are required to file FinCEN Form 114 but don't properly do so, you may have to pay a civil penalty up to $10,000. A person who willfully fails to CAUTION report an account or provide account identifying information may be subject to a civil penalty equal to the greater of $100,000 or 50% of the balance in the account at the time of the violation. Willful violations may also be subject to criminal penalties. Line 7b. If you are required to file FinCEN Form 114, enter the name of the foreign country or countries in the space provided on line 7b. Attach a separate statement if you need more space. Line 8. If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash or marketable securities generally is considered to be a distribution. See Form 3520 for details. If you were the grantor of, or transferor to, a foreign trust that existed during 2016, you may have to file Form 3520. Don't attach Form 3520 to Form 1040. Instead, file it at the address shown in its instructions. If you were treated as the owner of a foreign trust under the grantor trust rules, you are also responsible for ensuring that the foreign trust files Form 3520-A. Form 3520-A is due on March 15, 2017, for a calendar year trust. See the instructions for Form 3520-A for more details. Winslow Assignment #2 Due 9/14/17 2-1 Sandra is manager of the local Chew and Choke Restaurant franchise in Woodstock GA, (C&C), She is paid a flat annual salary and is expected to pay for her own travel and business expenses. She travels out of town several times a year to C&C franchise meetings. Sandra is eligible for a bonus each year based on her restaurants overall performance. Over the past two years, she received the following compensation: 85,625 Salary paid in 2016 9,800 Bonus awarded for 2015 that was paid to Sandra in January 2016 11,100 Bonus awarded for 2016 that was paid to Sandra in January 2017 2-2 Because C&C does not have a retirement plan, Sandra has established a traditional IRA. 5,000 was contributed to herTraditional IRA during 2016. As a self-rmployed individual, Art established a Keogh Plan several years ago. 15,000 was contributed to his Keogh Plan in 2016 2-3 In 2012, Sandra's widowed aunt Marie died. Among her assets was a $240,000 life insurance policy naming Sandra as the sole benficiary. Taking the advice of her financial advisor, Sandra elected to receive this money in the form of an Annuity to be paid to her over the next 10 years. The annuity terms were as follows: 240,000 Face amount of annuity contract 29,000 Annual annuity payment - (Sandra is to receive this payout each year on July 1) 10 year period payout period. = 2-4 In addition to the items already noted, the Winslow's received the following during the year: 3,365 Federal tax refund from prior year 285 GA State tax refund from 2014 (the Winslow's itemized deductions in 2014) received 5/25/15 265 Interest income from Suntrust Bank 124 Interest income from Scottrade 975 Bank of America - Certificate of Deposit interest income 2,890 Dividends from Charles Schwab ( 2,890 were considered Qualified dividends ) 1,630 Dividends from Scottrade 385 were considered Qualified dividends ) 2,245 Interest paid on Cobb County Municipal Industrial Bonds (Private Activity Bond) YourAssignment: 1 Record Sandra's W-2 compensation on Form 1040, line 7 2 Traditional IRA Deduction - Form 1040, line 32 3 Keogh Plan - Form 1040, line 28 4 Complete 1040, line 10 (Review tax benefit rule) 5 Complete 1040, line 16 (a) and (b) 6 Complete Schedule B, Interest and Dividend income lines 1,2,4,5,6 and questions for Part III (all "no") 7 Complete 1040, lines 8(a) and (b) and 9(a) and (b) TURN IN SCHEDULE B TODAY >>>>>>>>>>>> 0 (4,350) STUDENT DISTRIBUTED COPY V Fall 2015 V V ART AND SANDRA WINSLOW TAX RETURN INFORMATION V FOR TAX YEAR 2014 V V V 1 Art and Sandra Winslow are ages 45 and 39, married, and live at 1552 Berkeley Rd., Kennesaw GA. 30010 They meet with you and provide the following information from which you are to prepare their 2011 tax return. 2 Art is a part-time self-employed claims adjuster for several major casualty insurance companies (professional activity code 524290). He maintains an office at 418 Main St., Suite 320, 30008. He also is a part-time stay-at-home dad for his 2 children. 3 Art and Sandra provide the majority of support for their 2 children who live with them, Peggy (age 9) and Bobby (age 6). In addition, Art's mother Ruth, (age 79) has lived with them for the past two years since she became 100% disabled/paralyzed as result of an automobile accident. She qualifies as a dependent. Relevant Social Security numbers are: Art 136-94-4596 Sandra 137-47-7892 Peggy 135-29-5102 Bobby 138-61-8245 Ruth 138-52-6821 4 Sandra is manager of the local Chew and Choke Restaurant franchise in Woodstock GA, (C&C), She is paid a flat annual salary and is expected to pay for her own travel and business expenses. She travels out of town several times a year to C&C franchise meetings. Sandra is eligible for a bonus each year based on her restaurants overall performance. Over the past two years, she received the following compensation: 88,654 Salary paid in 2012 90,316 Salary paid in 2013 8,000 Bonus awarded for 2012 that was paid to Sandra in January 2013 9,000 Bonus awarded for 2013 that was paid to Sandra in January 2014 5 In 2008, Sandra's widowed aunt Marie died. Among her assets was a $100,000 life insurance policy naming Sandra as the sole benficiary. Taking the advice of her financial advisor, Sandra elected to receive this money in the form of an Annuity to be paid to her over the next 20 years. The annuity terms were as follows: 100,000 Face amount of annuity contract 8,500 Annual annuity payment 20 year period 6 In addition to the items already noted, the Winslow's received the following during the year: 3,365 Federal tax refund from prior year 222 GA State tax refund from 2012 (the Winslow's itemized deductions in 2012) received 5/25/13 710 Interest income from Suntrust Bank 432 Interest income from Scottrade 64 Bank of America - Certificate of Deposit interest income 2,669 Dividends from Charles Schwab of which 2,550 were considered Qualified dividends 309 Dividends from Scottrade of which 309 were considered Qualified dividends (35) Foreign taxes withheld from the dividends that were paid by Charles Schwab 2,900 Interest paid on Cobb County Industrial Bonds (Private Activity) 7 The Winslow's had the following stock transactions during the year. All transactions were reported by the Winslow's brokerage firms on Form 1099-B and included basis information that was reported to the IRS. Date Date Sale Acquired Sold Price Cost 300 shares Cisco Systems 500 shares IBM 400 shares Equifax 4/5/11 1/10/13 1/5/10 7/1/13 11/15/13 11/15/13 7,650 90,000 26,800 The Winslow's also have a long-term capital loss carryover from prior years in the amount of 4,800 102,500 12,400 1,300 8 Art's Insurance Claims Adjustment business ((EIN # 45-6543210) reports on the cash basis. For 2013 it has revenue and expenses as follows: INCOME: 58,496 58,496 Payments reported on Form 1099 from insurance company contracts 13,600 13,600 Cash payments, (no Form 1099) from building contractors 72,096 72,096 EXPENSES: State and local business license fees Office rent 9,600 Supplies Utilites Advertising mat'l Accounting services Legal services Renter's Insurance 1,820 1,310 1,200 1,350 1,125 Repair expense to copy machine Business lunch expenses Medical insurance premiums Office expenses Tax return preparation cost 325 400 550 2,800 6,500 940 625 The business lunches Art paid for were to entertain various visiting executives from the insurance companies he does business with. As is the case with all of Art's business transactions, the lunches are properly documented and supported by receipts. 9 Art's actual automobile expenses are: Gasoline, oil, lube, etc. Car repair/maint/tires,etc. Auto Insurance AAA Club Dues 3,900 During the year Art incurred the following 1,965 1,250 mileage on his BMW: 9,750 Business miles 182 3,475 Personal/family 7,297 1,775 Commuting 15,000 In addition, and entirely in connection with the business use of his car, Art paid 720 for parking 225 for freeway tolls 325 for illegal parking fines and a speeding ticket 2,950 Art is also eligible to claim this as depreciation on his BMW (Use this amount and do not attempt to calculate depreciation yourself) 10 Art and Sandra own a single-family rental property that is rented out for 100% of the year. It is not used as a vacation home. The property was purchased in 2011 in a foreclosure sale for $250,000. The address is 1928 Lakeside Ct, Blue Ridge GA. Income and Expenses from this rental property are as follows: Rental Income Expenses: Mortgage Interest Real Estate Taxes Repairs Insurance Depreciation Neighborhood Assn dues 24,000 8,780 3,100 1,650 1,025 7,250 800 11 Sandra attends evening classes at Camden City College to earn credits toward a master's degree in Restaurant Management. Her expenses for the year for two classes are summarized as follows: 5,100 Tuition 360 Books and computer supplies 165 Gas and Parking 160 Meals while on campus 5,785 12 Sandra has unreimbursed employment related expenses as follows: 540 Business lunches 232 Christmas Gifts to key C&C employees ** She also attended several franchise manager meetings: 1,280 Transportation 860 Lodging 380 Meals 110 Incidentals (taxi, limo, valet services) 3,402 ** The Christmas gifts were fruit baskets $28 Cost of basket $1 gift wrapping 8 number of gifts to A&F buyers 232 Total cost 13 The Winslow's had the following additional cash expenditures during the year: Medical expenses 7,375 Expenses for doctor, dentists, hospitals, etc, not covered by insurance 893 Expenses for prescription drugs 9,000 Modifications made to Winslow residence ( see item 14 below) 490 Over-the-counter cold and flu remedies, etc 260 Gas, parking related to doctor, hospital visits State and local tax expense 5,375 Real estate taxes on Winslow 328 Ad valorem taxes paid on family Lexus 1,500 Special property tax road repaving assessment (see item 15 below) 2,695 GA. tax withheld from Sandra's paycheck per her W-2 2,000 Quarterly GA estimated taxes paid by Winslow's ($500 x 4) Interest expense 8,775 Home Mortgage interest 2,033 Home equity line of credit interest (see item 16 below) 765 VISA credit card interest Charitable contributions: 1,200 United Way contribution withheld from Sandra's paycheck Clothing and furniture donated to Goodwill Industries: 2,700 Original cost of propery. All donated items were in excellent condition. 475 Fair Market Value on date of donation (estimated to be 17.5% of original cost) Tax return preparation fee paid to local CPA Firm 1,250 50% of this fee is considered to be part of Art's business expenses Retirement plan contributions: 5,000 Sandra - Traditional IRA - See 17 below 10,000 Art - Keogh Plan 14 Art's mom Ruth is completely wheel chair bound as a result of her auto accident. To ease her situation, Art had certain portions of their personal residenc modified (by putting in ramps, lowering counters and widening hallways) to facilitate wheelchair and walker access. A neighbor friend, who is a realtor, estimated that the improvements increased the value of the Winslow residence by $5,000 15 The City of Garfield made a special assessment to repave Berkeley Rd. The Landry's share of the total repaving cost was based on their 250 foot frontage of their residence on Berkeley Rd. To expedite the process, the City chose to add the amount to property owners tax bills rather than bill them directly for the cost of repaving. 16 The home equity loan balance outstanding is $40,000. The money borrowed was used to purchase the family's Lexus 17 Because C&C does not have a retirement plan, Polly has established a traditional IRA. Also, Sandra has chosen not to be covered under the C&C medical plan because it is a non-subsidized plan. Art's plan, discounted through one of the insurance companies he contracts with, is able to provide the family with better medical benefits for less cost. 18 For federal income tax purposes, the Winslow's choose to deduct state income taxes rather than state and local sales taxes. 19 Sandra's W-2 from C&C shows 7,524 Federal tax withholding Art made federal estimated tax payments of 8,000 Art made federal estimated tax payments of 8,000 paid in at $2,000 per quarter - Federal Assignment: (100 points are possible) Your assignment is to prepare a joint tax return with the indicated schedules. Any overpayment of taxes should be refunded to the Winslow's. They do not wish to contribute to the Presidential Election Campaign Fund. The following turn-in Forms will be submitted during the semester on the following dates with possible points shown Schedule B Sept 23rd 3 points Form 8949 Oct 7th 4 points Schedule C Oct 23rd 8 points Schedule E Oct 30th 8 points Schedule A Nov 11th 7 points 30 points total A c om plete d Winslow 20 13 tax return tha t includes a ll of the following Form s and Sc he dules will be turned in on December 2nd with the following possible points to be awarded: Total Pts Turn-In Complete 22 Form 1040 (pg 1 & 2) 12 Schedule A 5 Schedule B 12 Schedule C 7 3 8 6 Schedule D 6 Form 8949 4 12 Schedule E 8 4 Schedule SE 4 Form 8917 7 Form 2106-EZ 10 Line 44 Tax Calc. Worksheet 100 Total 30 + + + + + + 22 points 5 points 2 points 4 points 6 points 2 points 4 points 4 points 4 points 7 points 10 points 70 points total