I would like to request help filing out Schedule A, Form 2106, Form 4797, and Form 8863 for the following tax return project.Armando Z. and Lourdes K. Gonzales are married and file a joint return. Armando is self-employed as a dentist, and Lourdes is a college professor. Armando and Lourdes have three children. The oldest is Ricardo, who lives at home. Ricardo is a law student at the University of Cincinnati and worked part time during the year, earning $1,500, which he spent for his own support. Armando and Lourdes provided $6,000 toward Ricardo's support (including $4,000 for Ricardo's fall tuition). They also provided over half the support of their daughter, Selena, who is a full-time student at Edgecliff College in Cincinnati. Selena worked part time as an independent contractor during the year, earning $3,200. Selena lived at home until she was married in December 2015. She filed a joint return with her husband, Tony, who earned $20,000 during the year. Felipe is the youngest and lived in the Gonzales's home for the entire year. The Gonzaleses provide you with the following additional information:
• Armando and Lourdes would like to take advantage on their return of any educational expenses paid for their children.
• The Gonzaleses do not want to contribute to the presidential election campaign.
• The Gonzaleses live at***** Cincinnati, Ohio 45211.
• Armando's birthday is ***** and his Social Security number is###-##-####
• Lourdes's birthday is ***** and her Social Security number is###-##-####
• Ricardo's birthday is ***** and his Social Security number is###-##-####
• Selena's birthday is ***** and her Social Security number is###-##-####
• Felipe's birthday is ***** and his Social Security number is###-##-####
• The Gonzaleses do not have any foreign bank accounts or trusts.Lourdes is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,860 of Social Security tax, and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, Social Security tax of $620, and Medicare tax of $145.The Gonzaleses received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. They paid interest of $1,100 on the loan. Armando received a dividend of $540 on General Bicycle Corporation stock he owns. Lourdes received a dividend of $390 on Acme Clothing Corporation stock she owns. Armando and Lourdes received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 2015 are qualified dividends.Armando practices under the name “Armando Z. Gonzales, DDS.” His business is located at***** Cincinnati, Ohio 45211, and his employer identification number is ***** Armando's gross receipts during the year were $111,000. Armando uses the cash method of accounting for his business. Armando's business expenses are as follows:
Advertising $ 1,200
Professional dues 490
Professional journals 360
Contributions to employee benefit plans 2,000
Malpractice insurance 3,200
Fine for overbilling State of Ohio for work performed on welfare patient 5,000
Insurance on office contents 720
Interest on money borrowed to refurbish office 600
Accounting services 2,100
Miscellaneous office expense 388
Office rent 12,000
Dental supplies 7,672
Utilities and telephone 3,360
Payroll taxes 2,400
In June, Armando decided to refurbish his office. This project was completed and the assets placed in service on July 1. Armando's expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Armando elected to compute his cost recovery allowance using MACRS. He did not elect to use §179 immediate expensing, and he chose to not claim any bonus depreciation.
Submitted: 4 months ago.
Category: Business and Finance Homework