Description
James & Ella Kiddie file a joint tax return and have no other
dependents. Also have no itemized deductions.
|
Combined Salary & Wages James & Ella |
180,000 |
|
Workers’ compensation Ella hurt on the job |
5,000 |
|
Compensatory damages for physical injury |
18,000 |
|
Punitive damages for physical injury |
14,000 |
|
Cash Prize |
2,000 |
James took a distribution from a Qualified Tuition Plan not used for
qualified higher education expenses for his grandson in the amount of $15,500
which he used to buy a boat. James contribution to the fund in 2004 was
$15,000.
James, is an employee of a manufacturing company, suffered a heart
attack and was unable to work for six months. He received $1,500 per month of
disability benefits for six months as a result of an employer-provided group
policy. The amount was not reflected in his W-2 but he received an information
form 1099 stating it as other income.
Ella’s father (land acquired 5/1/1980 was jointly owned with his
wife who passed on 11/1/2000) gifted on 7/1/14 to Ella a parcel of land which
cost (tax basis) the father & mother $90,000 and had a fair market value of
$130,000 at the date of gift (no gift tax was paid). Market value of the land
for the whole parcel at date of death of the Ella’s mother (11/1/2000) was $200,000.
Ella sold this land on 10/1/14 for $135,000.
Also, James received from his deceased uncle’s estate real estate
with a value at the date of his death of $250,000 on 6/15/ 14. James sold this
property on Oct 10, 2014 for $500,000.
James
& Ella (Stock & Art Works Jointly held) sold the following shares of
stock& art works in 2014 which
were
reported to them by a stock brokerage company and reported to IRS:
Date Purchased Adjusted Basis Date
Sold Sales Proceeds
S Corp. 7/25/2007 $4,800 9/25/14 $ 9,500 basis reported to IRS
O Corp. 5/17/2008 1,600 6/07 /14 1,100 basis reported to
IRS
C Corp. 1/04/2009 3,900 8/25/14 7,500 basis reported to
IRS
K
Corp. 11/02/2013 2,500 10/01/14 1,800 basis reported to IRS
Art Works 9/01/2010
25,000 11/01/14 175,000 basis not reported to
IRS
Answer the following questions: If no amounts put NONE
1.
What is the adjusted gross
income line # 37 pg 1 1040?
Enter Here
$___________________
2.
What is the amount of personal
exemptions Line # 42 pg 2 1040? Enter Here $___________________
3.
Total interest income Line # 8a
1040 pg 1 if any? Enter
Here $___________________
4.
Total Capital Gain Sch D Line #
16 pg 2 if any? Enter Here $___________________
5.
Total other income Line # 21
1040 pg 1 if any? Enter Here $___________________
6.
Total of any penalty tax Line #
58 1040 pg 2 if any ?
Enter Here $___________________
7.
Total Net Investment Income Tax
Line # 60 1040 pg. 2 if any ? Enter
Here $___________________
8.
*Total Capital Gain Income
taxed at 15% if any? Line # 29
Enter Here $___________________
9.
*Total Capital Gain Income
taxed at 20% if any ? Line # 32 Enter
Here $___________________
10.
*Total Capital Gain Income
taxed at 25% if any ? Line # 38 Enter Here $___________________
11.
*Total Capital Gain Income Taxed at 28%
if any? Line # 41 Enter Here $___________________
*From Tax Worksheet (Sch. D (1040))
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