Details of this Paper

BUS 261 Tax Return Problem 6

Description

solution updated


Question

COMPREHENSIVE PROBLEM 6

 

 

With Emphasis on Schedule D

 

 

Debra Simon is a single taxpayer. She is employed as a corporate attorney and lives at 1400 Sand Dollar Circle, Sandville, FL 33172. Her social security number is 412-34-5670.

 

 

For tax year 2013, Debra had the following income information:

 

 

http://textflow.mheducation.com/figures/125916408x/appb8_1.jpg

 

 

Debra had the following stock transactions during 2013. A 1099-B was received for the proceeds of each sale:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_8_1.jpg

 

 

Debra also sold her wine collection for $38,000. She had purchased the wine more than five years ago on various dates for $19,000.

 

 

Debra has a capital loss carryover from 2012 of $11,700: $3,000 short-term and $8,700 long-term.

 

 

Debra rents a condo (no mortgage interest) and lives in Florida (no state income tax). Thus she claims the standard deduction.

 

 

Required:

 

 

Required: Complete the 2013 tax return for Debra Simon. You do not need to complete the loss carryover worksheet but do need to enter the carryover amount in the appropriate place on Schedule D. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. For any missing information, make reasonable assumptions.

 

 

COMPREHENSIVE PROBLEM 7

 

 

With Emphasis on Schedule E

 

 

Chris and Stefani Watanabe live with their two boys at 1400 Victoria Lane, Riverside, CA 92501. Chris is an accountant who has his own accounting practice. Stefani is an elementary school teacher. Their sons, Justin and Jordan, are ages 12 and 9, respectively. The following is additional information regarding the Watanabes.

 

 

Social security numbers for the Watanabe family:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_9_1.jpg

 

 

Chris

 

 

412-34-5670

 

 

Stefani

 

 

412-34-5671

 

 

Justin

 

 

412-34-5672

 

 

Jordan

 

 

412-34-5673

 

 

They paid $4,500 to Friendly Hills Child Care center for after-school care for both Justin and Jordan, allocated equally.

 

 

Stefani\\\'s W-2 from the Riverside school district showed the following:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_9_2.jpg

 

 

Chris\\\'s accounting business is located in downtown Riverside. His business had the following income and expense information for the year:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_9_3.jpg

 

 

Gross revenues

 

 

$165,000

 

 

Expenses:

 

 

 

?Advertising

 

 

$ 2,100

 

 

?Insurance

 

 

1,200

 

 

?Legal fees

 

 

10,500

 

 

?Office supplies

 

 

800

 

 

?Rent

 

 

24,000

 

 

?Travel

 

 

6,945

 

 

?Meals entertainment

 

 

2,400

 

 

?Utilities

 

 

2,800

 

 

?Wages

 

 

34,000

 

 

?Dues

 

 

650

 

 

Additionally, Chris and Stefani paid the following expenses during the year:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_9_4.jpg

 

 

Medical and dental expenses

 

 

$ 4,500

 

 

Property tax (home on Victoria Lane)

 

 

3,750

 

 

State income taxes

 

 

3,900

 

 

Donations to the church (cash)

 

 

3,500

 

 

Tax return preparation

 

 

800

 

 

Mortgage interest (home on Victoria Lane)

 

 

14,900

 

 

Chris and Stefani also earned $975 of interest income from California Bank during the year.

 

 

Page B-8

 

 

Lastly, Chris and Stefani own a 3-bedroom cabin in Big Bear Lake (they bought it in 2003). The address is 3105 Stonehedge Road, Big Bear Lake, CA 92315. They did not use the property for personal use at any time during the year. The revenue and expenses for the Big Bear Lake rental property are as follows:

 

 

http://textflow.mheducation.com/figures/125916408x/appb_10.jpg

 

 

Rental income

 

 

$18,000

 

 

Expenses:

 

 

 

?Insurance

 

 

$ 1,200

 

 

?Property taxes

 

 

2,500

 

 

?Auto (standard mileage)

 

 

267

 

 

?Management fees

 

 

1,600

 

 

?Repairs and maintenance

 

 

1,100

 

 

?Mortgage interest

 

 

9,000

 

 

?Depreciation

 

 

960

 

 

?Utilities

 

 

450

 

 

The Watanabes also made $18,000 and $7,000 in federal and California estimated income tax payments, respectively, during the year.

 

 

Required:

 

 

Required: Prepare the Watanabes\\\' federal tax return for 2013. Use Form 1040, Schedule A, Schedule C, Schedule E, Schedule SE, and any additional schedules or forms they may need. They want to contribute to the presidential election campaign, and they do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions.

 

Paper#38602 | Written in 07-Dec-2015

Price : $15
SiteLock