Kurt and Ashley Tallo (SSNs 412-34-5670 and 412-34-5671), married filing jointly, reside at 1901 Princess Ave., Park City, UT 84060. Ashley does not work outside the home. Kurt’s W-2 shows the following: Wages $ 340,000 Federal withholding 76,80
BIGAN02
final.docxKurt and Ashley Tallo (SSNs 412-34-5670 and 412-34-5671), married filing jointly, reside at 1901 Princess Ave., Park City, UT 84060. Ashley does not work outside the home. Kurt’s W-2 shows the following:
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Wages |
$ |
340,000 |
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Federal withholding |
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76,800 |
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Social security wages |
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118,500 |
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Social security withholding |
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7,347 |
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Medicare withholding |
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6,190 |
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State withholding |
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23,800 |
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The Tallos also have the following:
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Mortgage interest |
$ |
12,600 |
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Charitable contributions |
$ |
10,000 |
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Kurt and Ashley have four passive activities. They received K-1s from four partnerships with the following income or loss on line 1. They are at-risk in each activity, so the passive loss rules are the only obstacle.
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Activity 1 |
$ |
(40,000 |
) |
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Activity 2 |
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(20,000 |
) |
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Activity 3 |
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(10,000 |
) |
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Activity 4 |
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63,000 |
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Prepare Form 1040 for the Tallos for 2016. The Taxpayers had qualifying health care coverage at all times during the tax year. You will need Form 1040, Schedule A, Schedule E (page 2), Form 6251, and Form 8582. Do not compute the underpayment penalty, if any. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. However losses should be indicated by a minus sign.)
