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Question: FILL OUT SCHEDULE D FOR THE INOFORMATION BELOW ACT405 – Portfolio Project Case 1 Comprehensive Ta...

FILL OUT SCHEDULE D FOR THE INOFORMATION BELOW

ACT405 – Portfolio Project Case 1

Comprehensive Tax Problem – Option 1

Taxpayer Information

                Name:   John Washington

                Address:   3450 Green St.

                                    Miami, FL 54321

                DOB:   5/5/1960

                Filing Status: Married

                SSN: 434-20-2020

                Occupation: Engineer

                Name: Debra Washington

                Address: 3450 Green St.

                                   Miami, FL 54321

                DOB: 7/7/1962

                Filing Status: Married

                SSN: 411-21-4568

                Occupation: Teacher

INCOME INFORMATION:

                Wages and Compensation

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

                                               

Box 1 – Wages, tips, and other compensation	80,000
Box 2 – Federal Withholding	12,500
Box 17 – State Income Tax Withholding	2,000

                               

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

                                               

Box 1 – Wages, tips, and other compensation	42,000
Box 2 – Federal Withholding	3,500
Box 17 – State Income Tax Withholding	750

                Interest and Dividends

                John had interest income from a savings account from Everest Bank of $500.00

                Debra had dividend income of $550 from Blue Co. stock.

                Capital Gains

                John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000

                Rental Real Estate

The couple owns a rent house which he purchased on July 1, 2014. The income and expenses of the rental real estate unit 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. Debra had educator expenses in 2017 of $450.00

2. John had gambling winnings of $1,000.

3. John was the beneficiary of his mother’s life insurance policy.

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

                4. Debra paid $700 in student loan interest.

Templet:

SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99)	Capital Gains and Losses ▶ Attach to Form 1040 or Form 1040NR. ▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. ▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.						OMB No. 1545-0074
							2016 Attachment Sequence No. 12
Name(s) shown on return					Your social security number
Part I      Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)				(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)
1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b   .
1b Totals for all transactions reported on Form(s) 8949 with Box A checked     .   .   .   .   .   .   .   .   .   .   .   .   .
2   Totals for all transactions reported on Form(s) 8949 with Box B checked     .   .   .   .   .   .   .   .   .   .   .   .   .
3   Totals for all transactions reported on Form(s) 8949 with Box C checked    .   .   .   .   .   .   .   .   .   .   .   .   .
4   Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824     . 5   Net short-term   gain or (loss)   from   partnerships,   S corporations,   estates, and trusts   from Schedule(s) K-1   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 6   Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions      .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 7   Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back    .   .   .   .   .						4
						5
						6		(                                 )
						7
Part II      Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)				(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)
8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b   .
8b Totals for all transactions reported on Form(s) 8949 with Box D checked    .   .   .   .   .   .   .   .   .   .   .   .   .
9   Totals for all transactions reported on Form(s) 8949 with Box E checked     .   .   .   .   .   .   .   .   .   .   .   .   .
10 Totals for all transactions reported on Form(s) 8949 with Box F checked .   .   .   .   .   .   .   .   .   .   .   .   .   .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 13 Capital gain distributions. See the instructions    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions      .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .						11
						12
						13
						14		(                                 )
						15
For Paperwork Reduction Act Notice, see your tax return instructions.                                      Cat. No. 11338H                    Schedule D (Form 1040) 2016

Answer 1

Loan interest decuction worksheet:

33	Student loan	Amount	Amount
	Actual interest		700
1	Min actual or 2,500		700
2	Total income	1,43,800
3	Deductions to AGI	450
4	Modified AGI	1,43,350
5	Phase out	1,35,000
6		8,350
7	Divide by 15000	0
8	Amount of phase out		195
	Deduction		505