Tax Return Problem
ACCT 374 Tax Return代写
Tax Return代写 Please prepare a 2018 Federal Individual income tax return for the Samsons, using the following information.
Please prepare a 2018 Federal Individual income tax return for the Samsons, using the following information. The return is to be prepared manually (i.e., no software tools are allowed, and no typing) and it is to be done by each student individually (it is not a group project). Please use 2018 rules.
Homer and Marge Samson are married and will file a joint return. Tax Return代写
Their Social Security numbers are 888-88-8888 and 200-20-2000, respectively. Their address at the end of 2013 was 4501 W. Joshua Lane, Tucson, Arizona 85741. Living with them are their children: Bart (SS # 333-33-3333), Lisa(444-44-4444), and Sammy (555-55-5555). Bart is 23 and is a full time student at Whatsa Matta U. He earned $3500 from a part time job, and had received $10,000 in student loans and $15000 in scholarships for the year. Lisa is 18 and is a part time student at a beauty college. She received $9000 in tips this year. Sammy is 10 but is very enterprising, earning $12,000 from his lemonade stand this year. The parents provided over half of the support for all children.
Also living in the Samsons home are Marge’s parents, Geezer and Geezee. Each earns $5000 in pension funds, and each collects $5000 per year in Social Security benefits. Both are blind and 70 years old, and the Samsons’s provide all of their support. Because they are kindly, the Samsons also support a local unrelated and unemployed woman (May Drahpaduse), who because of her bad hygiene, lives in the Samsons’ garage.
Marge is an attorney working for the firm of Dewey, Cheatham, and Howe. Tax Return代写
Her salary for 2018 was $750,000, from which her employer withheld $30,000 of Federal income taxes, $12,000 in state income taxes, and $6000 in Social Security (FICA) taxes. Since she was sent for 2 months to work in the country of Bahlemia, the Bahlemian government withheld the equivalent of $3200 in US dollars in local taxes.
Marge also enjoys collecting dead animals off the roads, which she then preserves and sells (the technical term is “taxidermy”), to which she devotes about 20 days a year. In 2018 she sold $25,000 worth of her collection to fellow dead animal enthusiasts. Her expenses related to this activity were:
Business Licenses $2,000
Cost of animal carcasses sold $4,000
She runs this operation out of one of the house bedrooms. Tax Return代写
She estimates that the bedroom is about 10 per cent of the square footage of the house. House expenses (not including mortgage interest and taxes) for the year were $3,000.
Marge is also a partner in an investment partnership, Takscam LTD. During the year her share of partnership losses was $28,000. She also had $3,000 of research and development tax credits “flow through” to her from this partnership. She devotes no time to this partnership during the year. The partnerships FEIN number is 85-111111. (folder e) form 3880
Marge is also a shareholder in an S corporation, Huzzah, Inc (FEIN 95-22222). For the year, Marge’s share of S corporation income was $6,000. She also had a $2,000 long term capital gain flow through from that entity to her. (Schedule E)
During the year, Marge was permanently transferred to Dewey, Cheatham, and Howe’s new office in Phoenix, which is 120 miles away from her old office in Tucson. She was given $2,000 by her company for moving expenses. She used the money to pay for moving her office furniture, and related transportation costs. Assume that se meets all relevant tests for moving expenses.
During the year, the Samsons rented their vacation home for $60,000. Tax Return代写
They rented it for half the year, and used it for personal purposes the other half of the year. Costs associated with the home were:
Mortgage interest and taxes $20,000
Utilities, repairs, and misc. expenses $10,000
New Roof $30,000 (capitalize take depreciation) form 4684
New heating system $30000
Appraiser’s fee (to see how much their house might be worth) $2,000 (schedule e)
Also, during the year the Samsons sold their principal residence (at 2308 Elaine Blvd., Tucson ,Arizona) and bought their current residence on Joshua Lane. They had previously lived 5 years in the home. The sales price was $900,000, and their basis was $400,000.Costs of sale were $25,000. Schedule D
During 2018 the Samsons also received the following: Tax Return代写
Dividends from Apple: $5000
Dividends from a Korean company of $6000, on which the Korean government had withheld the equivalent of $200 in US taxes
Interest from a local bank account: $500
Interest on US Treasury bills: $2000
Interest on State of Nevada bonds: $2000 (schedule b)
Winnings on a local TV game show: $600
Refund of State of Arizona income taxes (from 2006): $200
Gift from Marge’s mom: $3000
Stock Dividend from General Motors (GM gave each shareholder 1 share of GM stock. GM stock as trading for $200 at the time)
Inheritance form Homer’s aunt: $20,000
The Samsons paid the following in 2018: Tax Return代写
Alimony (To Homer’s ex wife) $27,000
Child Support (to Homer’s ex wife’s children) $3,000
Fines to City of Tucson, for having an unhealthy level of garbage in front of their house (this was due to May) $100
Mortgage interest on their principal residences $30,000
Property taxes on their principal residences $20,000
Local sales taxes $20,000
Medical expenses $20,000. They estimated that these expenses were about evenly attributable to Bart, Lisa, Sammy, and May.
During the year, Homer was involved in an auto accident. His car was totally destroyed, and had an FMV of $10,000 before the accident (he had bought the car 2 years ago for $15,000. He received no insurance reimbursement for the car. However, the other driver admitted fault for the accident and his insurance company paid Homer $500 for the inconvenience of the accident. (Deduct or not)
The Samsons were active investors and sold the following in 2018: Tax Return代写
General Motors, for $7,000. They had bought the stock six months earlier for $2,000.
Cisco stock for $30,000. They had bought the stock 2 years before for $70,000.
Raw land in Montana, for $150,000. They had inherited the land from Homer’s aunt three years before. At that time, the aunt had a basis of $2,000, and the FMV was $12,000
Stock in Blackhole, Inc, for $0 (the stock was worthless). The Samsons had invested $550,000 in this company five years before. Luckily, the company had made a Section 1244 election. (Form 4797)
A Bond in General Electric Corporation, for $3,000. The bond originally cost Homer $5,000, and he sold it to his brother, Krusty.
Homer is self-employed and has a bird grooming business. Items relating to the business are as follows:
Wages paid to employees 5,000
Federal Taxes paid 2,000
Advertising (on local trees) 5,000
Miscellaneous office fees 10,000
Medical insurance for his employees 20,000
Contributions to pension plans
(half of which was for Homer, and half for his employees) 20,000
Two Schedule c Tax Return代写
In December 2018, his business purchased the following:
Machinery and equipment for $70,000 (salvage value of $5,000); Truck for $40,000
In June of 2018 the company sold an older truck for $10,000. The company bought it in April 2015 for $15,000 and had taken MACRS depreciation.
Form 4797 all the depreciation
To get forms, go to:
then select: form and instruction number make sure to use 2018 forms. The instructions are also on-line—be sure to download those, too. You will need Form 1040 (and related schedules a,b,c,d,e,se), forms 3800, 3903,4797, 4562, 6251, 4864 and others (TBA). Tax Return代写