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ACC Tax Computation Problem - Jane Smith, age 40, is single and has no dependents




Question;Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, Fl. 33431. Jane?s social Security number is 123-45-6789. Jane indicates that she wishes to designate $3 to the presidential Election Campaign Fund. During 2013 Jane had the following income and expense items:a. $50,000 salary from Legal Services, Inc.b. $20,000 gross receipts from her typing services business.c. $700 interest income from Acme National Bankd. $1,000 Christmas bonus from Legal Services, Inc.e. $60,000 life insurance proceeds on the death of her sister.f. $5000 check given to her by her wealthy aunt.g. 100 won in a bingo game.h. Expenses connected with the typing service,Office rent $7,000Supplies $4,400Utilities and telephone $4,680Wages to part time typist $5,000Payroll taxes $500Equipment rentals $3,000i. $8,346 interest expense on a home mortgage (paid to San Jose savings and loan)j. $5000 fair market value of silverware stole from her home by a burglar on October 12, 2009. Jane had paid $4000 for the silverware on July 1, 2000. Her insurance company reimbursed her $1,500.k. Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2006. Joan declared bankruptcy on August 14, 2009, and was unable to repay the loan. Assume the loan is a bona fide debt.l. Legal Services, Inc., withheld Federal income tax of $16,000 and the appropriate amount of fica tax from her wagesm. Alimony of $10,000 received from her former husband, Ted Smith.n. Interest income of $800 on City of Boca Raton bonds.o. Jane made estimated Federal tax payments of $1,000.p. Sales taxes from the sales tax table of $654q. Charitable contributions of $2500PART 1- TAX COMPUTATIONCompute Jane Smith?s 2013 Federal Income tax payable (or refund due). you will need Forms 1040 and 4684 and Schedules A, C, and D.


Paper#40293 | Written in 18-Jul-2015

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