Using the attached information, complete a tax return.
LeighJay
portfolio_case_1.xlsxCase_Opt1
| Brian and Sheila Williams were married in October of 2005. They live at 1000 Main Street, Atlanta, GA 33127. Brian is a postal service worker. Sheila is a teacher at Grady High School. Brian’s social security number is 555-11-1111 and Sheila’s social security number is 555-22-2222. They have a dependent daughter Jayla who is 10 years old (Born on May 12th). Jayla’s social security number is 555-33-3333. In 2013, Brian's wages was $45,860 while Sheila's was $43,590. | |||||||||||||
| Included or Excluded Items | Reasoning for Including or Excluding and if Including, Indicate amount to include Microsoft Office User: Olagbemi, Felicia: Added more words here as applicable. |
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| Two years ago, the taxpayer loaned a friend $2000. The friend has filed for bankruptcy this year and will not be able to repay | |||||||||||||
| Earned $100 interest on county municipal bonds | |||||||||||||
| Found a diamond worth $1000 on the ground | |||||||||||||
| Received $500 in death benefits fron Brian's father | |||||||||||||
| Received $4,000 court settlement. $1,000 was punitive damanges. | |||||||||||||
| Brian paid $400/month in child support | |||||||||||||
| Received a $1000 gift from his brother | |||||||||||||
| Sheila won $100 playing bingo | |||||||||||||
| Brian paid $200/month in alimony to his ex-wife | |||||||||||||
| Sheila received a $1000 gift from her mother | |||||||||||||
| Sheila spent $300 on supplies for her classroom | |||||||||||||
| Portfolio Investments | |||||||||||||
| Stock | Acquired | Sold | Sales Price | Cost (Basis) | Qualified Dividends | ||||||||
| Red Stock | 2/1/13 | 10/5/13 | $6,000 | $2,500 | $0 | ||||||||
| White Stock | 6/11/06 | 10/15/13 | $5,000 | $4,000 | $100 | ||||||||
| Blue Stock | 10/1/02 | 8/3/13 | $2,000 | $10,000 | $0 | ||||||||
| Black Stock | 3/6/13 | 12/15/13 | $3,000 | $5,000 | $0 | ||||||||
| Yellow Stock | 4/5/00 | N/A | N/A | $5,000 | $300 | ||||||||
| Interest Income Source | Amount | ||||||||||||
| Money Market Account | $200 | ||||||||||||
| Savings Account | $25 | ||||||||||||
| State Municipal Bonds | $35 | ||||||||||||
| Rental Property | |||||||||||||
| They own and rent two pieces of residential real estate in Miami, FL. These properties were acquired with cash (so there are no mortgages on the homes). They both have real estate broker licenses in Georgia and Florida. They dedicate enough hours (through their business) to qualify as a “real estate professional” with regard to these properties. | |||||||||||||
| Property 1 | |||||||||||||
| The first property is located at 17750 NW 17th Ave, Miami, FL. They collect $1,000 monthly in rent. The property was purchased June 30, 2010 for $150,000. The tax records show that the value of the land is $30,000 and the value of the home was $90,000 when purchased. They actively participate in the management of the real property. | |||||||||||||
| The property has the following expenditures: | |||||||||||||
| Property tax | $7,000/yr | ||||||||||||
| Repairs | $ 900/yr | ||||||||||||
| Insurance | $1,200/yr | ||||||||||||
| Washing Machine | $300 | (purchased 6/2/2012) | |||||||||||
| Refrigerator | $700 | (purchased 7/1/2013) | |||||||||||
| Furniture | $2,000 | (purchased 4/1/2011) | |||||||||||
| Property 2 | |||||||||||||
| The second property is located at 5610 NW 11th Ave, Miami, FL. They collect $1,500 monthly in rent. The property was purchased on June 12, 2010 for $100,000. The tax records show that the value of the land is $20,000 and the value of the home was $80,000 when purchased. They actively participate in the management of the real property. | |||||||||||||
| The property has the following expenditures: | |||||||||||||
| Property tax | $6,200/yr | ||||||||||||
| Repairs | $3,000/yr | ||||||||||||
| Insurance | $1,200/yr | ||||||||||||
| Legal fees | $ 500/yr | ||||||||||||
| Advertising Expense | $ 500/yr | ||||||||||||
