Yvonne Belmont lives at 1310 Meadow Lane, Farmingdale, NY 11735, and her Social Security number is 123-45-6777. Yvonne is single and has a 20-year-old son, Bob. His Social Security number is 111-11-1112. Bob lives with Yvonne, and she fully supports him. Bob spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bob paid $4,000 of lodging expenses that Yvonne reimbursed after they were fully documented. Yvonne paid the $4,000 to Bob using a check from her sole proprietorship. That amount is not included in the items listed below. Yvonne had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance Yvonne owns Belmont Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Farmingdale, NY 11735. The business activity code is 514210. Accounting Method is "Cash Basis." Her 2019 Form 1040, Schedule C for Belmont Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes (category: "Taxes/Licenses Expenses")of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Yvonne personally purchases health insurance on herself and Bob. The premiums are $23,000 per year. Yvonne has an extensive stock portfolio and has prepared the following analysis: Stock Number of Date Date Per-Share Per-Share Total Shares Purchased Sold Cost Selling Price Dividend Beige 10 10/18/18 10/11/19 $80 $ 74 $30 Garland 30 10/11/11 10/11/19 43 157 Peach 15 3/10/19 8/11/19 62 33 Note: Yvonne received a Form 1099-B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2019, and these are both ordinary dividends and qualified dividends. ALL TRANSACTIONS ARE CONSIDERED "COVERED. 70 45 Yvonne had $800 of interest income from State of NY bonds and $600 of interest income on her Farmingdale Savings Bank account. She paid $25,000 of alimony to her former husband, John Belmont. His Social Security number is 123-45- 6788 Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. Item Unreimbursed medical expenses for Yvonne NY State income taxes paid 1,830 3,230 Real property taxes on personal residence Interest paid on home mortgage (Form 1098) Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes Yvonne made $27,000 estimated Federal income tax payments, does not want any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2020 taxes. Yvonne qualifies for the 199A deduction for qualified business income. Be sure to include that in your calculations. Compute Yvonne's net tax payable or refund due for 2019. INSTRUCTIONS: Prepare the Federal income tax return. You will need Form 1040 and its Schedules 1, 2, 3, A, B, C, D, and SE and Forms 8949 and 8995. Yvonne Belmont lives at 1310 Meadow Lane, Farmingdale, NY 11735, and her Social Security number is 123-45-6777. Yvonne is single and has a 20-year-old son, Bob. His Social Security number is 111-11-1112. Bob lives with Yvonne, and she fully supports him. Bob spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bob paid $4,000 of lodging expenses that Yvonne reimbursed after they were fully documented. Yvonne paid the $4,000 to Bob using a check from her sole proprietorship. That amount is not included in the items listed below. Yvonne had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance Yvonne owns Belmont Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Farmingdale, NY 11735. The business activity code is 514210. Accounting Method is "Cash Basis." Her 2019 Form 1040, Schedule C for Belmont Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes (category: "Taxes/Licenses Expenses")of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Yvonne personally purchases health insurance on herself and Bob. The premiums are $23,000 per year. Yvonne has an extensive stock portfolio and has prepared the following analysis: Stock Number of Date Date Per-Share Per-Share Total Shares Purchased Sold Cost Selling Price Dividend Beige 10 10/18/18 10/11/19 $80 $ 74 $30 Garland 30 10/11/11 10/11/19 43 157 Peach 15 3/10/19 8/11/19 62 33 Note: Yvonne received a Form 1099-B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual dividends received in 2019, and these are both ordinary dividends and qualified dividends. ALL TRANSACTIONS ARE CONSIDERED "COVERED. 70 45 Yvonne had $800 of interest income from State of NY bonds and $600 of interest income on her Farmingdale Savings Bank account. She paid $25,000 of alimony to her former husband, John Belmont. His Social Security number is 123-45- 6788 Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. Item Unreimbursed medical expenses for Yvonne NY State income taxes paid 1,830 3,230 Real property taxes on personal residence Interest paid on home mortgage (Form 1098) Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes Yvonne made $27,000 estimated Federal income tax payments, does not want any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2020 taxes. Yvonne qualifies for the 199A deduction for qualified business income. Be sure to include that in your calculations. Compute Yvonne's net tax payable or refund due for 2019. INSTRUCTIONS: Prepare the Federal income tax return. You will need Form 1040 and its Schedules 1, 2, 3, A, B, C, D, and SE and Forms 8949 and 8995