Your client, Ben McDonald, has written you about his tax situation. Please assume that gross income...

Your client, Ben McDonald, has written you about his tax situation. Please assume that gross income is $172,900 (which consists only of salary) for purposes of this problem.

December 31, 2016

Dear ***** *****, CPA:

Hi, it’s Ben McDonald again. I understand you need some more information from me in order to complete my tax return. Please let me know what information you need and I’ll be happy to provide it.

I moved this year due to taking a job at SwissLog. The move was in late January and I worked my job at SwissLog for the rest of the year. I moved 650 miles away from my old house but I still live in the same state. I left a little bit early to go on a house-hunting trip that cost me a total of $450. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65. We spent $35 on meals on the way to our new home. Oh yeah, I took my little boy to a movie on the way and that cost $20.

Can you believe I’m still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.

Since SwissLog (my employer) never started a retirement plan, I decided I should probably start saving for my golden years. I contributed $3,000 to what the bank referred to as a regular IRA (or was it a REM?). Oh yeah. I also did a little investing this year. I bought a limited partnership interest in IGlow, Ltd. for $10,000. I thought it was going to be a real winner, but this year they took a bath. My portion of the loss was $8,000. Well, at least I did not actually do any work for IGlow, and I get the tax deduction - right?

That should be all the information you need right now. Please calculate my adjusted gross income and complete page 1 of Form 1040. You’re still doing this for free, right?

Sincerely,

Ben

Required: calculate Ben’s AGI and complete the 1^st page of the 1040 form (forms can be downloaded from the IRS website).

Expert Solution

Sorry due to techinal error unable to load correct answer, I will upload correct today. Please wait. Sorry of that.

ekkarill92 answered 1 year ago

John is your client and has come to you to prepare his tax return. During the...

John is your client and has come to you to prepare his tax return. During the 2018-19 financial year, John disposed of the following assets: (a) A two-storey residence at Stuart Park which he acquired in May 1991. In 1995 John vacated the premises to work in Japan for three years, during this period the property was rented. Other than the 3 year period, John has lived in the property as his residence. He paid $370,000 to purchase the property...

Please assume that his gross income is $172,900 (which consists only of salary) for purposes of...

Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2018 To the friendly student tax preparer: Hi, it’s Shady Sam again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I think you need to know. Let me tell you a few more...

PLEASE USE CURRENT INFORMATION Please assume that his gross income is $172,900 (which consists only of...

***PLEASE USE CURRENT INFORMATION*** Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2020 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I think you need to know. Let me tell...

Please discuss the obligations a tax accountant has to both the tax system and his/her client...

Please discuss the obligations a tax accountant has to both the tax system and his/her client and some practical ways he/she should fulfill both of these obligations?

A potential client wants to know if Social Security benefits are included in his gross income...

A potential client wants to know if Social Security benefits are included in his gross income for tax purposes. Other than the amount of the Social Security benefits and excluded foreign income, what information do you need to know to make the determination? (Points will be deducted for listing items that would not be needed in making the determination.)

Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?...

Ben's employer offers employees the following benefits. What amount must Ben include in his gross income? Benefit Value Health insurance coverage $ 5,800 Group term life insurance (Policy $50,000) 4,270 Disability insurance coverage (considered purchased by Ben) 3,600 Whole life insurance coverage (Policy $100,000) 7,000 A. $11,070 B. $9,400 C. Zero - none of these benefit is included in gross income. D. $10,600 E. $7,000

Assume that your tax client is the sole heir of an inheritance. Refer to Estate Tax...

Assume that your tax client is the sole heir of an inheritance. Refer to Estate Tax Form 706 and Publication 706 and explain to the client 1) the property included in Gross Estate and 2) the taxes which must be paid. In addition, discuss with the client at least two strategies you will use to minimize his or her estate transfer taxes.

You are asked to write a memo to your client, Mr. Carter regarding his tax question....

You are asked to write a memo to your client, Mr. Carter regarding his tax question. ● Your paper should not be more than 2-3 pages, double spaced ● The format should be as follows: ○ Restate the issue / question (first paragraph) ○ Explain the facts in relation to your research (middle paragraphs) ■ Cite a primary or authoritative material at least once ■ Refer the the tax form the information would be reported on ■ Include calculations and...

Accounting 201 - This is a written assignment. Assume you are about to invest in the...

Accounting 201 - This is a written assignment. Assume you are about to invest in the stock market. What are you going to consider and what tools will you use? What do the tools say to you?

You are a CPA being paid to prepare a tax return for a client. Your client...

You are a CPA being paid to prepare a tax return for a client. Your client has a maid that cleans their house twice a week, and is paid about $3,000 per year. You notice your client has not been reporting, withholding, or paying any taxes on the wages of this household employee. When you bring this issue up to your client, they are quick to reply that the maid is a part-time employee and not subject to the “nanny...

Question