Cumulative Software Return Problem

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Dr. Ivan I. Incisor and his wife Irene are married and file a joint return for 2020. Ivan’s Social Security number is 477-34-4321 and he is 56 years old (D.O.B. 7/18/64). Irene I. Incisor’s Social Security number is 637-34-4927 and she is 53 years old (D.O.B. 8/2/67). They live at 468 Mule Deer Lane, College Station, TX 77845.

Dr. Incisor is a dentist and he took 6 months off work to attend a cosmetic dentistry degree program in 2020. He is employed at Bitewing Dental Clinic. For two of those months he was considered unemployed and received unemployment compensation.

The Incisors have a 12-year-old son (D.O.B. 2/15/2008), Ira, who is enrolled in the 6th grade at the Perpetual Perpetuity School. Ira’s Social Security number is 690-99-9999. When Irene began her Schedule C business, day care was needed for Ira after school. The Incisors paid $4,000 to a Day Care Center. The Day Care Center was (Humpty Dumpty, 100 College Station, TX 77845 Tax Id 38-0000000) The Incisors also have a 19 year-old daughter, Iris, who is a part-time freshman student at Snow Mass Community College (SMCC). Iris’ Social Security number is 899-99-9999. Iris is married to Sean Slacker (SS No. 896-33-0954), who is 19 years old and a part-time student at SMCC. Sean and Iris have a 1-year-old child, Seth Slacker (SS No. 648-99-4306). Sean, Iris, and Seth all live in an apartment up the street from Ivan and Irene during the entire current calendar year. Sean and Iris both work for Sean’s wealthy grandfather as apprentices in his business. Their wages for the year were a combined $50,000, which allowed them to pay all the personal expenses for themselves and their son. Ivan and Irene heard about the new $500 “other dependent credit” and were hoping to claim their daughter Iris.

Ivan went to a local casino and won $6,000 playing Keno on 7/04/2020. Ivan had no other gambling income or loss for the year. This amount was reported on the W-2G. The winnings were reported to Texas State Lottery Commission, Austin, TX. (fed id 38-1238790). There was no federal taxes withheld.

In February, Irene received $50,000 in life insurance proceeds from the death of her friend Sharon.

In July, Ivan’s Uncle Igor died and left him real estate (undeveloped land) worth $72,000.

In March of 2008 Ivan loaned a friend (Bob Borrower) $10,000. This debt was evidenced by a written note and Bob was supposed to repay it in 2020. In 2020 Bob filed for bankruptcy and the debt is completely worthless.

Ten years ago, Ivan and Irene were divorced. Ivan then married Mary Molar, but that marriage did not work out and they were divorced a year later. Eight years ago, Ivan and Irene were remarried. Under their divorce decree dated 12/12/2011, Ivan pays Mary $13,000 per year alimony. All payments were made on time during 2020. Mary’s Social Security number is 667-34-9224.

Bitewing Dental Clinic, Inc., pays Ivan’s dental license fees and membership dues to dental organizations. During 2020, Bitewing paid $1,240 for such dues and fees for Ivan.

Ivan and Irene paid the following in 2020 (all by check or can otherwise be substantiated):

Ivan and Irene’s 2020 Payments
Contributions to Perpetual Perpetuity Catholic Church	$400
Tuition to Perpetual Perpetuity Catholic School for Ira	$6,000
Clothes to Salvation Army (10 bags in good condition) 7/15/2020	$350
Contributions to George Kerry’s Congressional Campaign	$250
Psychotherapy for Irene	$1,000
Doctor Bills	$8,000
Medical Insurance Premiums	$10,000
Eyeglasses for Ira	$375
Prescription Medication and Drugs	$1,000
Credit Card Interest	$1,345

Interest on Ivan’s dental school loans-Form 1098E-Country Mortgage-Box 1 $2,500

(Ivan carried a half course load in 2020, and the loan was for tuition. The loan Interest paid in 2020 related to the tuition from the 2020 year).

Tuition paid in 2020-Assume that Ivan took these courses to maintain and improve his existing skills as a Dentist. This amount was reported on the Form 1098-T. (See attached Form 1098-T). This was the first time Ivan has used any education credits.

Ivan has not been convicted of any felony drug offense.

Determine the tax effects of the education expenses of $10,000

Other Payments
Auto loan interest on home equity loan. Country Mortgage (auto was paid for by a home equity loan on residence - There was no form 1098). The interest was for their non-business 2009 Saturn View (For other interest- see forms)	$900
Auto insurance	$1,600
Dace Deduction, CPA, for preparation of last year’s tax return	$700
Safe-deposit box for storage of stocks and tax data	$100
Unreimbursed business expense for Ivan(seminar on tooth polishing)	$700

On June 17, Ivan purchased a new Professional HDV Camcorder for $17,000. While the Incisors were on vacation from 8/22-91/20, someone broke into their residence and stole the Camcorder. Ivan’s area was declared a major disaster area due to Hurricane Laura that occurred during this time period. The FEMA disaster declaration number was DR-4572-TX. There were several houses where there was looting. Ivan’s homeowners insurance did not reimburse him for any part of the loss since he declined the special premium add-on for high value items required by his policy. Ivan also filed a police report.

For the 2020 tax year, on March 15, 2020, Ivan contributed $5,000 to a traditional IRA for himself and $5,000 to a traditional IRA for his wife. He is not covered by a qualified retirement plan at work.

Ivan owned 1,000 shares of Behemoth Airline stock with a basis of $30 per share. The stock was purchased 12 years ago on June 10, 2007. Ivan sells 500 shares of Behemoth stock to his uncle Seth and 500 of the shares to his sister Sara for $5 per share on December 31, 2020. There was no 1099-B for the two sales above.

Form 1099 B’s related other personal investments and all other tax forms are provided below. Assume that there were no capital loss carryovers.

(Refer to the attached tax forms along with other information below for other deductible expenses or inclusions in income)

When entering on Intuit software assume the basis was not reported on the Form 1099-B for any of the sales

Grape Corporation
Payer's Name and Address	1a. Date of Sale Exchange	2020 Form 1099-B	Proceeds From Broker and Barter Exchange Transactions
Grape Corporation PO Box 444 New Orleans, LA 56197	9/25/2020
	1b. Date of Acquisition
	12/8/2019
	Stocks, bonds, etc. Gross Proceeds		Copy B for Recipient
	$9,975
PAYER'S FEDERAL ID NUMBER	Cost or Other Basis	Federal Income Tax Withheld
38-7654321	$10,430
RECIPIENTS IDENTIFICATION NUMBER	Box 2 Short-Term	6.
xxx-xx-4321
RECEIPEINT'S NAME	7.	8. Type of Gain or Loss
Ivan Incisor
Street Address	9. Description
468 Mule Deer Lane	100 Shares Preferred
City, State, Zip	10. Profit or Loss	11. Unrealized Gain or Loss Open
College Station, TX 77845	Realized in 2011	Contracts in 2010
Account Number	12. Unrealized Gain or Loss on Open	13. Aggregate Profit or Loss Contracts
	Contracts in 2011
CUSIP Number	14. Bartering	15.

Orange Corporation
Payer's Name and Address	1a. Date of Sale Exchange	2020 Form 1099-B	Proceeds From Broker and Barter Exchange Transactions
Orange Corporation PO Box 777 Naples , Florida 48897	4/16/2020
	1b. Date of Acquisition
	2/1/1997
	Stocks, bonds, etc. Gross Proceeds		Copy B for Recipient
	$3,000
PAYER'S FEDERAL ID NUMBER	Cost or Other Basis	Federal Income Tax Withheld
38-1234567	$2,150
RECIPIENTS IDENTIFICATION NUMBER	Box 2 Long-Term	6.
xxx-xx-4321
RECEIPEINT'S NAME	7.	8. Type of Gain or Loss
Ivan Incisor
Street Address	9. Description
468 Mule Deer Lane	100 Shares Common
City, State, Zip	10. Profit or Loss	11. Unrealized Gain or Loss Open
College Station, TX 77845	Realized in 2011	Contracts in 2010
Account Number	12. Unrealized Gain or Loss on Open	13. Aggregate Profit or Loss Contracts
	Contracts in 2011
CUSIP Number	14. Bartering	15.

Banana Inc.
Payer's Name and Address	1a. Date of Sale Exchange	2020 Form 1099-B	Proceeds From Broker and Barter Exchange Transactions
Banana Inc. PO Box 123 Oceanside, CA 99780	7/31/2020
	1b. Date of Acquisition
	7/17/2000
	Stocks, bonds, etc. Gross Proceeds		Copy B for Recipient
	$1,950
PAYER'S FEDERAL ID NUMBER	Cost or Other Basis	Federal Income Tax Withheld
	$4,210
RECIPIENTS IDENTIFICATION NUMBER	Box 2 Long-Term	6.
xxx-xx-4321	Long-Term
RECEIPEINT'S NAME	7.	8. Type of Gain or Loss
Ivan Incisor
Street Address	9. Description
468 Mule Deer Lane	100 Shares Common
City, State, Zip	10. Profit or Loss	11. Unrealized Gain or Loss Open
College Station, TX 77845	Realized in 2011	Contracts in 2010
Account Number	12. Unrealized Gain or Loss on Open	13. Aggregate Profit or Loss Contracts
	Contracts in 2011
CUSIP Number	14. Bartering	15.

Georgia Peach
Payer's Name and Address	1a. Date of Sale Exchange	2020 Form 1099-B	Proceeds From Broker and Barter Exchange Transactions
Georgia Peach PO Box 765 Atlanta, GA 99780	10/22/2020
	1b. Date of Acquisition
	5/3/2005
	Stocks, bonds, etc. Gross Proceeds		Copy B for Recipient
	$60,120
PAYER'S FEDERAL ID NUMBER	Cost or Other Basis	Federal Income Tax Withheld
38-7654321	$56,480
RECIPIENTS IDENTIFICATION NUMBER	Box 2 Long-Term	6.
xxx-xx-4321	Long-Term
RECEIPEINT'S NAME	7.	8. Type of Gain or Loss
Ivan Incisor
Street Address	9. Description
468 Mule Deer Lane	Peach Mutual Fund 5,010.15 shares
City, State, Zip	10. Profit or Loss	11. Unrealized Gain or Loss Open
College Station, TX 77845	Realized in 2011	Contracts in 2010
Account Number	12. Unrealized Gain or Loss on Open	13. Aggregate Profit or Loss Contracts
	Contracts in 2011
CUSIP Number	14. Bartering	15.

Plum Inc. 1099
Payer's Name and Address	1a. Date of Sale Exchange	2020 Form 1099-B	Proceeds From Broker and Barter Exchange Transactions
Plum Inc. PO Box 765 Venice, FL 99780	1/2/2020
	1b. Date of Acquisition
	12/30/2004
	Stocks, bonds, etc. Gross Proceeds		Copy B for Recipient
	$5,130
PAYER'S FEDERAL ID NUMBER	Cost or Other Basis	Federal Income Tax Withheld
38-7654321	$5,320
RECIPIENTS IDENTIFICATION NUMBER	Box 2 Long-Term	6.
xxx-xx-4321	Long-Term
RECEIPEINT'S NAME	7.	8. Type of Gain or Loss
Ivan Incisor
Street Address	9. Description
468 Mule Deer Lane	5 bonds due 4/20/17
City, State, Zip	10. Profit or Loss	11. Unrealized Gain or Loss Open
College Station, TX 77845	Realized in 2011	Contracts in 2010
Account Number	12. Unrealized Gain or Loss on Open	13. Aggregate Profit or Loss Contracts
	Contracts in 2011
CUSIP Number	14. Bartering	15.

Bitewing Dental Clinic Inc. W-2
W-2 Information	1. Wages, Tips and Other Compensation	2. Federal Income Tax Withheld
	$99,000	$14,000
a. Employee Soc. Sec. No.	3. Social Security Wages	4. Social Security Tax Withheld
477-34-4321	$99,000	$6,138
b. Employer ID Number	5. Medicare, Wages and Tips	6. Medicare Tax Withheld
38-111111	$99,000	$1,436
c. Employer's name, address and zip code
Bitewing Dental Clinic, Inc. 777 Dental Lane College Station, TX 77845
d. Control Number
0000
e. Ivan Incisor 468 Mule Deer Lane College Station, TX 77845
7. Social Security Tips	8. Allocated Tips	9.

10.	11. Nonqualified Compensation	12 a.

13. Stat. Employer		12 b.

14. Retirement Plan		12 c.
Third Party Sick Pay
		12 d.

15. State Employer ID.	16. State Wages Tips	17. State Income Tax
38-111112	$99,000	$5,000
18. Local, Wages, Tips	19. Local Income Tax

Big Electric Company
Payer's Name and Address	Payer's RTN Optional	2020 Form 1099-INT	INTEREST INCOME
Big Electric Company PO Box 9999 Myrtle Beach, SC 12457	1. Interest Income
	$650
	2. Early Withdrawal Penalty

Payer's Federal ID Number	Recipients’ ID No.	3. Interest on US Bonds	Copy B For Recipient
381-111111	XXX-XX-4321
Recipient’s Name	4. Federal Income Tax Withheld	5. Investment Expense
Ivan Incisor
Street Address	6. Foreign Tax Paid	7. Foreign Country or US Possession
468 Mule Deer Lane
City, State Zip	8. Tax Exempt Interest	9. Specific Private Activity Bonds Interest
College Station, TX 77845
Account Number (see instructions)	10. Tax Exempt Cusip No.	11. State	12. State Identification No.
1230987123
	13. State Tax Withheld

Boulder City Municipal Bonds
Payer's Name and Address	Payer's RTN Optional	2020 Form 1099-INT	INTEREST INCOME
Austin Municipal Bonds-exempt from state tax PO Box 9999 Austin, TX 77845	1. Interest Income

	2. Early Withdrawal Penalty

Payer's Federal ID Number	Recipients’ ID No.	3. Interest on US Bonds	Copy B For Recipient
381-111111	XXX-XX-4321
Recipient’s Name	4. Federal Income Tax Withheld	5. Investment Expense
Ivan Incisor
Street Address	6. Foreign Tax Paid	7. Foreign Country or US Possession
468 Mule Deer Lane
City, State Zip	8. Tax Exempt Interest	9. Specific Private Activity Bonds Interest
College Station, TX 77845	$650
Account Number (see instructions)	10. Tax Exempt Cusip No.	11. State	12. State Identification No.
1230987123
	13. State Tax Withheld

Pacific Northwest Bank
Payer's Name and Address	Payer's RTN Optional	2020 Form 1099-INT	INTEREST INCOME
Pacific Northwest Bank PO Box 7560 Denver, CO 99206	1. Interest Income
	$380
	2. Early Withdrawal Penalty

Payer's Federal ID Number	Recipients’ ID No.	3. Interest on US Bonds	Copy B For Recipient
381-111111	XXX-XX-4321
Recipient’s Name	4. Federal Income Tax Withheld	5. Investment Expense
Ivan Incisor
Street Address	6. Foreign Tax Paid	7. Foreign Country or US Possession
468 Mule Deer Lane
City, State Zip	8. Tax Exempt Interest	9. Specific Private Activity Bonds Interest
College Station, TX 77845
Account Number (see instructions)	10. Tax Exempt Cusip No.	11. State	12. State Identification No.
1230987123	X	exempt
	13. State Tax Withheld

Payer’s Activity Bonds 1099
Payer's Name and Address	Payer's RTN Optional	2020 Form 1099-INT
Private Activity Bonds PO Box 5555 Del Mar, CA 92014	1. Interest Income

	2. Early Withdrawal Penalty

Payer's Federal ID Number	Recipients’ ID No.	3. Interest on US Bonds
33-0711111	xxx-xx-9415
Recipient’s Name	4. Federal Income Tax Withheld	5. Investment Expense
Ivan Incisor
Street Address	6. Foreign Tax Paid	7.
468 Mule Deer Lane,
City, State Zip	8. Tax Exempt Interest	9. Specific Private Activity Bonds Interest
College Station, TX 77845	$ 80,000	$ 80,000
15. State	16. State Identification No.	10. Mkt. Discount	11. Bond Premium	14. Tax Exempt and Tax Credit CUSIP No.

17. State Tax Withheld	13. Bond Premium on Tax Exempt Interest

Mango Mutual Fund
Payer's Name and Address	1a. Ordinary Dividends	2020 Form 1099 DIV	Proceeds From Broker and Barter Exchange Transactions
Mango Mutual Fund PO Box 9999 Myrtle Beach, SC 12457
	1b. Qualified Dividends	2b. Unreap. Sec 1250 Gain

PAYER'S FEDERAL ID NUMBER	2a. Capital Gain Distribution	2c. Section 1202 Gain
38-111111	$750
RECIPIENTS IDENTIFICATION NUMBER	2d. Collectibles
XXX-XX-4321		Copy B for Recipient
RECEIPEINT'S NAME	3. Non Dividend Distributions	4. Federal Income Tax W/H
Ivan Incisor
Street Address		5. Investment Expense
468 Mule Deer Lane
City, State, Zip	6. Foreign Taxes Paid	7. Foreign Country or US Possession
College Station, TX 77845
Account Number	8. Cash liquid. Distributions	9. Noncash liquid. Distributions
		Open Contracts in 2010
Account number (see instructions)	10. Exempt Interest Dividend	11. Private Activity Bonds
	Open Contracts in 2011	Loss on Contracts
00067769
1099 DIV	12. State	13. State Id No.	14. State Tax Refund

Big Bank Stock
Payer's Name and Address	1a. Ordinary Dividends	2020 Form 1099 DIV	Proceeds From Broker and Barter Exchange Transactions
Big Bank Stock PO Box 9999 Jacksonville, FL 45178	$850
	1b. Qualified Dividends	2b. Unreap. Sec 1250 Gain
	$850
PAYER'S FEDERAL ID NUMBER	2a. Capital Gain Distribution	2c. Section 1202 Gain
38-111111
RECIPIENTS IDENTIFICATION NUMBER	2d. Collectibles
XXX-XX-4321		Copy B for Recipient
RECEIPEINT'S NAME	3. Non Dividend Distributions	4. Federal Income Tax W/H
Ivan Incisor
Street Address		5. Investment Expense
468 Mule Deer Lane
City, State, Zip	6. Foreign Taxes Paid	7. Foreign Country or US Possession
College Station, TX 77845
Account Number	8. Cash liquid. Distributions	9. Noncash liquid. Distributions
		Open Contracts in 2010
Account number (see instructions)	10. Exempt Interest Dividend	11. Private Activity Bonds
	Open Contracts in 2011	Loss on Contracts
00067769
1099 DIV	12. State	13. State Id No.	14. State Tax Refund

Big Gas Company
Payer's Name and Address	1a. Ordinary Dividends	2020 Form 1099 DIV	Proceeds From Broker and Barter Exchange Transactions
Big Gas Company PO Box 9999 Tulsa, OK 23497	$470
	1b. Qualified Dividends	2b. Unreap. Sec 1250 Gain
	$470
PAYER'S FEDERAL ID NUMBER	2a. Capital Gain Distribution	2c. Section 1202 Gain
38-111111
RECIPIENTS IDENTIFICATION NUMBER	2d. Collectibles
XXX-XX-4321		Copy B for Recipient
RECEIPEINT'S NAME	3. Non Dividend Distributions	4. Federal Income Tax W/H
Ivan Incisor
Street Address		5. Investment Expense
468 Mule Deer Lane
City, State, Zip	6. Foreign Taxes Paid	7. Foreign Country or US Possession
College Station, TX 77845
Account Number	8. Cash liquid. Distributions	9. Noncash liquid. Distributions
		Open Contracts in 2010
Account number (see instructions)	10. Exempt Interest Dividend	11. Private Activity Bonds
	Open Contracts in 2011	Loss on Contracts
00067769
1099 DIV	12. State	13. State Id No.	14. State Tax Refund

Timador & Embaucar
Payer's Name and Address	1. Gross Distribution	2020 Form 1099-R	Distribution Form
Timador & Embaucar Brokerage, Inc. PO Box 9999 Myrtle Beach, SC 12457	$24,000
	2a. Taxable Amount
	0
	2b. Taxable Amount Not Determined	Total Distribution
		X
Payer's Federal ID Number	Recipients’ ID No.	3. Capital Gain	4. Fed Tax W/H
38-1234321	xxx-xx-4321	(included in box 2a)
Recipient’s Name	5. Employee Contrib.	6. Net Unrealized Appreciation
Ivan Incisor	Roth Contributions or INS. Premiums
Street Address	7. Dist. Code	IRA SEP	8. Other
468 Mule Deer Lane	G	Simple
City, State Zip
College Station, TX 77845
10. Amount Allocable to IRR within 5 years	11. 1st year of Designated Roth Contribution	9a. Your Percentage of Total Distribution	9b. Employee compensation

Account Number	12. State Tax Withheld	13. State/Payer State No.	14. State Distirib.
1234569		Open Contracts in 2010
	15. Local Tax Withheld	16. Name of locality	17. Local Distrib.

Country Mortgage Inc. 1098
Recipients/Lender’s Name, Address	2020 Form 1098	Mortgage And Real Estate Interest Statement
Country Mortgage, Inc. PO Box 5321, Sioux Falls, ND 57117
Recipient's Fed Id No.	Payer's Social Security No.	1. Mortgage Interest
02-3222678	xx-xx-4321	$10,875
		1/1/2020 Mortgage Balance
		$311,000
Payer/Borrower's Name	2. Points Paid
Ivan Incisor and Irene Incisor
Street Address	3. Real Estate Taxes Paid
468 Mule Deer Lane	$3,100
City or Town, State
College Station, TX 77845
Account Number
1350087

Texas Unemployment Commission 1099
Payer's Name and Address	1. Unemployment Compensation	2020 Form 1099-G	Certain Government Payments
Texas Unemployment Commission Austin, TX 78712	$3,750
	State or Local Income Tax Refund
			Copy B for Recipient
Federal ID Number	Recipients’ Identification No.
38-1111111	xxx-xx-4321
Recipients’ Name
Ivan Incisor
Street Address
468 Mule Deer Lane
City, State, Zip
College Station, TX 77845
Account Number
1230987123

Texas A&M 1098
Payer's Name and Address	1. Payments Received for Qualifying Tuition	2020 Form 1098-T	Certain Government Payments
Texas A&M PO Box 1001 College Station, TX 77845	$10,000

			Copy B for Recipient


Filer’s Federal ID Number	Student’s Identification No.	4. Adjustments made for prior year
38-1111111	477-34-4321
Student’s Name	5. Scholarships or grants	6. Adjustments to scholarships or grants in the prior year
Ivan Incisor
Street Address	7. Check box if the amount in box 1 includes amounts for an academic period beginning in Jan-March 2021	8. Check If at least a half time student
468 Mule Deer Lane
City, State, Zip
College Station, TX 77845
Account Number	9. Check if a graduate student	10. Insurance Contract/Reimbursement/Refund
1230987123

Ivan purchased 5 acres of land in Reno, NV, 13 years ago on 10/25/2004. His basis in land was $75,000. On December 31, 2020, he sold that land for $200,000 on the installment method to an unrelated party. Ivan received $45,000 in the year of sale, and the balance was payable at $15,500 per year for the next 10 years, plus market rate interest. The Incisor’s did not owe any money on the property. No interest will be received until 2020 since the sale was not made until December 31.

On May 15, 2020, Ivan and Irene sold their personal residence for $540,500 and purchased a new house for $725,000. There address was 587 Mockingbird Lane in College Station, TX 77845. They moved to their present address. Assume that there were only $500 in expenses for the sale since they did not use a realtor. They had owned the old house for 25 years. (Purchased on 6/10/92). It had an adjusted basis of $500,000 (Purchase price). Assume that they had no capital improvements on the home sold and that they wish to exclude the maximum gain available. Also assume that the Form 1099-S was received for the sale of the home. They received full payment for the sale. The house had been their personal residence for all the years they were married. They moved into the new house on May 18, 2020. Immediately after the purchase the Incisors Invested $10,000 in energy efficient solar panels and $5,000 to heat the existing swimming pool. The Incisors want to deduct the maximum possible for the Residential Energy Credit. Assume the Incisors have never taken these type of credits before.

On September 1, Irene opened a retail store that specializes in sports car accessories. She materially participated in the business.

The name of the store is “Plus Two Comes.” (EIN 38-0903267) The store is located at 617 Main Street, College Station, TX 77845. The store uses the cash method of accounting. Her income and expenses for the year are as follows: Assume that Plus Two Comes uses the cost method for its inventory.

Plus Two Comes Income and Expenses
Sales of merchandise	$82,300
Inventory, September 1 (purchased in August)	$62,500
Inventory, December 31	$58,700
Purchases during the year	$35,300
Sales returns and allowances	$525
Office Rental – until building was purchased	$7,500
Office expense	$1,400
Insurance	$1,000
Advertising	$3,000
Employee wages	$3,350
Payroll and other business taxes	$505
Interest on bank loan to open store	$2,740
Accounting fees	$300
Utilities	$1,000
Telephone	$800
Maintenance	$480
Miscellaneous	$175

On December 12, Irene purchased the building (non-residential real estate) where her store is located. She paid $340,000 for the land and building. The building was valued at $240,000 for the land was valued at $100,000. Irene’s store is the only business in the building.

In addition to the above items, Irene incurred travel expenses to attend a seminar on sports car accessories. She spent $300 on airfare, $400 on lodging, $100 on a rental car, and $150 on meals. Irene has proper receipts for these amounts.

Irene drove her 2004 Ford Explorer (placed into service on 6/01/2005) 1,634 miles for business, driven after September 1, 2020, related to Plus Two Cones. The Explorer was driven a total of 17,000 (business and personal for the year). Included in the 17,000 is 5,000 miles spent commuting to the store. Irene has the required substantiation for this business mileage. She uses the standard mileage method.

The Incisors own a rental beach house (single family residence) in Hawaii. The beach house was rented for the full year during 2020 and was not used by the Incisors during the year. The Incisors were active participants in the management of the rental. Pertinent information about the rental house is as follows:

Rental House Expenses
Address-1237 Pineapple St., Lihue, HI 96766
Rents received	$20,350
Mortgage interest paid-reported on form 1098	$7,800
Real Estate Taxes	$2,400
Utilities	$1,825
Maintenance	$3,000

The house is fully depreciated so there is no depreciation expense.

Required: Prepare the 2020 Federal Income Tax Return for Ivan and Irene Incisor using Intuit Software. Save as a pdf file and upload the “For Filing” pdf to the blackboard.

Make sure the following you have the following forms prepared.

1. Form 1040 along with the 1040 Schedules 1, 2 and 3

2. Schedule A

3. Schedule C

4. Schedule D

5. Form 8949

6. Schedule E

7. Schedule SE

8. Form 2441

9. Form 4684

10. Form 6251

11. Form 8863

12. Form 6252

13. Form 5695

14. Form 4562