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taxation problems

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Question;James & Ella Kiddie file a joint tax return and have no other;dependents. Also have no itemized deductions.;Combined Salary & Wages James & Ella;180,000;Workers' compensation Ella hurt on the job;5,000;Compensatory damages for physical injury;18,000;Punitive damages for physical injury;14,000;Cash Prize;2,000;James took a distribution from a Qualified Tuition Plan not used for;qualified higher education expenses for his grandson in the amount of $15,500;which he used to buy a boat. James contribution to the fund in 2004 was;$15,000.;James, is an employee of a manufacturing company, suffered a heart;attack and was unable to work for six months. He received $1,500 per month of;disability benefits for six months as a result of an employer-provided group;policy. The amount was not reflected in his W-2 but he received an information;form 1099 stating it as other income.;Ella?s father (land acquired 5/1/1980 was jointly owned with his;wife who passed on 11/1/2000) gifted on 7/1/14 to Ella a parcel of land which;cost (tax basis) the father & mother $90,000 and had a fair market value of;$130,000 at the date of gift (no gift tax was paid). Market value of the land;for the whole parcel at date of death of the Ella?s mother (11/1/2000) was $200,000.;Ella sold this land on 10/1/14 for $135,000.;Also, James received from his deceased uncle?s estate real estate;with a value at the date of his death of $250,000 on 6/15/ 14. James sold this;property on Oct 10, 2014 for $500,000.;James;Ella (Stock & Art Works Jointly held) sold the following shares of;stock& art works in 2014 which;were;reported to them by a stock brokerage company and reported to IRS;Date Purchased Adjusted Basis Date;Sold Sales Proceeds;S Corp. 7/25/2007 $4,800 9/25/14 $ 9,500 basis reported to IRS;O Corp. 5/17/2008 1,600 6/07 /14 1,100 basis reported to;IRS;C Corp. 1/04/2009 3,900 8/25/14 7,500 basis reported to;IRS;K;Corp. 11/02/2013 2,500 10/01/14 1,800 basis reported to IRS;Art Works 9/01/2010;25,000 11/01/14 175,000 basis not reported to;IRS;Answer the following questions: If no amounts put NONE;1.;What is the adjusted gross;income line # 37 pg 1 1040?;Enter Here;$;2.;What is the amount of personal;exemptions Line # 42 pg 2 1040? Enter Here $;3.;Total interest income Line # 8a;1040 pg 1 if any? Enter;Here $;4.;Total Capital Gain Sch D Line #;16 pg 2 if any? Enter Here $;5.;Total other income Line # 21;1040 pg 1 if any? Enter Here $;6.;Total of any penalty tax Line #;58 1040 pg 2 if any?;Enter Here $;7.;Total Net Investment Income Tax;Line # 60 1040 pg. 2 if any? Enter;Here $;8.;*Total Capital Gain Income;taxed at 15% if any? Line # 29;Enter Here $;9.;*Total Capital Gain Income;taxed at 20% if any? Line # 32 Enter;Here $;10.;*Total Capital Gain Income;taxed at 25% if any? Line # 38 Enter Here $;11.;*Total Capital Gain Income Taxed at 28%;if any? Line # 41 Enter Here $;*From Tax Worksheet (Sch. D (1040))

 

Paper#39196 | Written in 18-Jul-2015

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