Accounting Tax Problem


Please adequate the tax give-back for Individual Tax give-back Drift 4 in postscript C ground on page C-5 in your textbook. Content in the PDF frames ground at irs.gov and add them to this assignment, using the blue-colored-colored surrender be-mixed over.

 

Tax Give-back 2 is grounded on Individual Tax give-back 4 in postscript C on page C-5 of your textbook.  You should inaugurate established on this give-back now as it is many-sided and succeed exact past age than the pristine give-back. 

You succeed need a frame 1040 delay a catalogue C, D,SE, Frame 4562,4797,8949 and 8960. Here are some curb figures:

AGI:  $383,538, NO AMT, Succession 61 whole tax:  $86,011, Catalogue C succession 31:  $59,056, Catalogue D succession 15: $190,832, Catalogue SE succession 5 $8,344

Form 4562 succession 22: $606,264, Frame 4797 lin 18b $81,867

 

 

 

INDIVIDUAL TAX RETURN PROBLEM 4

Required:
  • Use the forthcoming advice to adequate Phillip and Claire Dunphy's 2013 federal proceeds tax give-back. If advice is dropping, use abstemious assumptions to content in the gaps. Ignore the choice narrowness tax for this drift.

  • Any exactd frames, catalogues, and instructions can be ground at the IRS website (www.irs.gov). The instructions can be advantageous in completing the frames.

Facts:
    1. Phillip and Claire are married and rasp a elbow give-back. Phillip is self-employed as a developed rank delegate, and Claire is a exodus adherent. Phillip and Claire accept three relative outcome. All three outcome speed at abode delay Phillip and Claire for the whole year.

      The Dunphys arrange you delay the forthcoming joined advice:

      • The Dunphys do not insufficiency to subscribe to the presidential sselection antagonism.

      • The Dunphys speed at 3701 Brighton Avenue, Los Angeles, CA 90018.

      • Phillip's birthday is 11/5/1967 and his Social Security enumerate is 321-44-5766.

      • Claire's birthday is 5/12/1970 and her Social Security enumerate is 567-77-1258.

      • Haley's birthday is 11/6/2001 and her Social Security enumerate is 621-18-7592.

      • Alex's birthday is 2/1/2003 and her Social Security enumerate is 621-92-8751.

      • Luke's birthday is 12/12/2007 and his Social Security enumerate is 621-99-9926.

      • The Dunphys do not accept any exotic bank representations or trusts.

    2. Claire is a exodus adherent for Western American Airlines (WAA), where she earned $57,000 in compensation. WAA delayheld federal proceeds tax of $6,375, say proceeds tax of $1,800, Los Angeles city proceeds tax of $675, Social Security tax of $3,600, and Medicare tax of $825.

    3. Phillip and Claire accepted $300 of curiosity-behalf from Say Savings Bank on a elbow representation. They so accepted a fitted dividend of $395 on elbowly owned store in Xila Corporation.

    4. Phillip's full-age developed rank calling is named “Phillip Dunphy Realty.” His calling is located at 645 Grove Street, Los Angeles, CA 90018, and his master identification enumerate is 93-3488888. Phillip's bulk produce during the year were $730,000. Phillip uses the specie manner of representationing for his calling. Phillip's calling expenses are as follows:

       
      Advertising$ 5,000
      Professional dues800
      Professional journals200
      Employee wages48,000
      Insurance on station contents1,120
      Accounting services2,100
      Miscellaneous station expense500
      Utilities and telephone3,360
      Payroll taxes3,600
      DepreciationTo be calculated

      On March 20, Phillip moved his calling out of the old stations at 1103 Allium Lane into a newly contrived and equipped station on Grove Street. Phillip sold the old station edifice and all its furnishings. Phillip's expenditures for the new station edifice are as follows:

      Date AcquiredAssetCost
      3/20Land$ 300,000
      3/20Office edifice2,500,000
      3/20Furniture200,000
      4/1Computer system350,000
      6/1Artwork150,000

      Phillip computes his require retrieval equivalent using MACRS. He would affect to use the §179 direct expensing, but he has elected to not demand any boon diminution. Phillip has never demanded §179 or boon diminution antecedently. The goods Phillip sold on March 20 are as follows:

      Date AcquiredAssetSales PriceOriginal CostAccumulated Diminution as of Beginning of the Year
      5/1/07Office edifice$940,000$900,000$129,825
      5/1/07Land200,000100,0000
      7/1/07Furniture50,000239,000206,998
      8/13/09Furniture10,000324,000222,782
      4/12/10Office equipment100,000120,00067,524
      5/13/12Computers$ 30,00050,00010,000

      Phillip has never sold any goods relating to his calling antecedently this business.

Page C-6
  1. The Dunphys sold 60 distributes of Fizbo Corporation niggardly store on September 3, for $65 a distribute (minus a $50 whole trust). The Dunphys purchased the store on November 8, 2012, for $90 a distribute. They so sold a painting for $13,000 on March 1. Claire purchased the painting for $20,050 on September 1, 2006, as an investment.

  2. The Dunphys raspd their 2012 federal, say, and national give-backs on April 13, 2013. They remunerated the forthcoming joined 2012 taxes delay their give-backs: federal proceeds taxes of $630, say proceeds taxes of $250, and city proceeds taxes of $75.

  3. The Dunphys made agely estimated federal proceeds tax payments of $19,000 each region during 2013. They so made estimated say proceeds tax payments of $1,000 each region and estimated city proceeds tax payments of $300 each region. The Dunphys made all fourth-region payments on December 31, 2013. They would affect to assent-to a repay for any overpayments.