Warner and Augustine Robins, both 33 years old, have been married for 9 years and have...

Warner and Augustine Robins, both 33 years old, have been married for 9 years and have no dependents.

Warner is the president of Dragon Lady Corporation located in Macon. The Dragon Lady stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner’s father.

Warner and Augustine received the following tax documents:
1) W-2 Form
2) Form 1099-INT
3) Form 1098
4) Letter from Macon Museum of Arts regarding their charitable contribution.
These items are located on separate tabs.

The Robins paid the following amounts (all can be substantiated):

General state sales tax	$2,120
Auto loan interest	$4,800
Medical insurance	$10,400
Income tax preparation fee	$750
Charitable contributions in cash:
Church	$2,600
Tree Huggers Foundation (a qualified charity)	$3,000
Central Georgia Technical University	$5,000
Safe-deposit box	$300

The tax basis for the donated painting is $25,000 and the painting has been owned by Warner and Augustine for 5 years.

Dragon Lady does not cover health insurance for its employees. In addition to Warner and Augustine's health insurance premiums shown above, Augustine required surgery which cost $6,720 for which only $3,100 was covered by insurance. Warner had to drive Augustine 300 miles each way to a surgical center.

On January 1, 2018, Warner sold land to Dragon Lady Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction.

Dragon Lady Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $11,000 ($5,500 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work).

Required:
Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949. Do not complete Form 8283, which is used when large noncash donations are made to charity.

Make realistic assumptions about any missing data.
The taxpayers did not have health insurance coverage for the entire year and they do not want to make a contribution to the presidential election campaign.
Enter all amounts as positive numbers, unless instructed otherwise.
If an amount box does not require an entry or the answer is zero, enter "0".
If required round any dollar amount to the nearest dollar.

including the calculation of the any alternative taxes

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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