The purpose of this assignment is to complete a tax return for your clients. The option you complete will be determined by the instructor.
Option 2 (Data Set B)
To begin this assignment, complete Problem I:7-64 in your textbook. Use the following additional information to complete the tax return:
Dan and Cheryl’s last name is Meyer.
If the Meyers have a refund, have the entire amount refunded.
Dan’s commissions were $150,000 instead of $125,000.
Change federal estimated tax payments to $26,000 instead of $24,000 and state estimated taxes to $2,500 instead of $2,200.
They made $11,000 in cash charitable contributions instead of $9,000.
For Schedule D:
- Assume the STCL was from Intel stock originally purchased on 1/4/19 for $12,000 and sold on 3/1/19 for $4,200.
- Assume the LTCG was from the sale of Google, Inc. stock originally purchased on 7/19/14 for $10,100 and sold on 10/1/19 for $15,000.
- Assume the LTCL was from the sale of Yahoo, Inc. stock originally purchased on 1/30/16 for $48,200 and sold on 11/2/19 for $45,000.
Assume the charitable donation of GE stock was to the United Way. It was donated on 9/5/19 and was originally purchased on 4/17/12.
- Dan uses the cash method.
- Assume one-third of the tax preparation fees are allocable to Dan’s business.
- The Taxpayers’ house is 3,000 square feet.
- The vehicle was placed in service on 12/31/17.
- Answer “yes” to items 45-47b on page 2.
Use the 2019 tax forms (locate tax forms on www.irs.gov).
For this assignment you will need to submit the following tax forms as a single document:
- Form 1040
- Schedule 1, Form 1040
- Schedule 2, Form 1040
- Schedule 3, Form 1040
- Schedule A, Form 1040
- Schedule B, Form 1040
- Schedule C, Form 1040
- Schedule D, Form 1040
- Form 8949, Form 1040
- Schedule SE, Form 1040
- Form 8283, Form 1040
Refer to the resource, “Tax Rate Schedules 2019 and Other Items,” located in the course materials.
Utilize the “Tax Return Check Figures for 2019 Tax Forms – Data Set A” and “Tax Return Check Figures for 2019 Tax Forms – Data Set B” resources to check your work on this topic assignment. The data set should match the option your instructor assigned you.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
When submitting the tax return project to LoudCloud, the tax return should be a single document. Do not scan and submit the completed tax forms individually or it may cause a delay in grading. Name the PDF file LastnameFirstinitial.ACC460.TR1, where the TR1 refers to the Tax Return 1 assignment.
You are not required to submit this assignment to LopesWrite.
Problem I:7-64 Using Data Set B
Check figures for the various forms (check figures are not provided for every form):
Form 1040 –
· Line 8b, AGI $161,708
· Line 16, Total tax $31,627
Schedule 1 –
· Line 22, Adjustments to income $13,242
Schedule A –
· Total itemized deductions $36,400
Schedule C –
· Line 28, Total expenses $23,950
Schedule D –
· Line 16 $(6,100)
Form 8949 –
· You will have one transaction on page 1 and two transactions on page 2. Remember to subtotal items on line 2 on both pages.
Form 8829 (not required) –
· Use simplified method as directed in the problem. Note: You have to determine the amount of square footage for the home office based on the information provided.
Remember to use the tax forms for the year indicated by your instructor. In addition, be sure to submit the tax forms in order as required by the IRS. You will notice a Sequence No. on the top right of each tax return form except for the Form 1040. Form 1040 is the first form in sequence.