Question

ACT405 – Portfolio Project Case 2

Comprehensive Tax Problem – Option 2

Taxpayer Information

                  Name:   Bryan Jones

                  Address:   1200 Main St.

                                        Green Bay, Wisconsin 12345

                  DOB:   5/6/1976

                  Filing Status:  Single

                  SSN:  500-10-2000

                  Occupation:  Staff Accountant

INCOME INFORMATION:

                  Wages and Compensation

The following information is taken from Bryan Jone’s 2017 Form W-2 Wage and Tax Statement:

                                                      

Box 1 – Wages, tips, and other compensation	52,000
Box 2 – Federal Withholding	8,750
Box 17 – State Income Tax Withholding	1,000

                  Interest and Dividends

                  Bryan has some Certificates of Deposits are Main Street bank which yielded 3,750 in interest in

                  2017.  In addition, Bryan has interest income from municipal bonds in the amount of 1,250.  

                  Also, Bryan received $2100 in qualified dividends from Plum Electronic Co.

                  Profit/Loss from Business

                  

                  Bryan has a part-time accounting services business. In 2017, his income and expenses are as f              follows:

                                                                        Service Revenue                 7,000

                                                                        Office Expense                        500

                                                                        Advertising                                750

                  Capital Gains

                  Bryan had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2016, which he purchased on April 1, 2014 for 25,000.  In addition, he sold 750 shares of Velocity Inc. for $10,000 on September 1, 2016, which he purchased on December 1, 2015 for $5,000.

                  Rental Real Estate

Bryan owns a rent house which he purchased on July 1, 2014.  The income and expenses of the rental real estate unit for 2017 are as follows:

                                    Rental income                                      $12,000

                                    Property taxes                                      $1,500

                                    Depreciation                                          $1,000

                                    Repairs and Maintenance             $750

                                    Insurance                                                 $2,000

Other Transactions in 2017

1. Bryan received a gift of $4,000 from his brother.

2. Bryan paid $3,000 for the year in alimony to his ex-wife, per divorce decree.

3.  Bryan had gambling winnings of $1,000.

4.  Bryan was the beneficiary of his mother’s life insurance policy.  

His mother died in 2017 and he received $50,000 under this policy.

  

Using the case data from the attached Case 2 to complete Form 1040, complete the attached template that has the respective tax forms and schedules required to complete the return. Complete all of the remaining parts of your respective business tax return for which there is information.

Answer 1