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Tax.appeal.168, Tax Accountant
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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How do I prepare Form 1040 and schedule D for Spencer Duck

Resolved Question:

How do I prepare Form 1040 and schedule D for Spencer Duck of Ames, Iowa
Submitted: 5 years ago.
Category: Tax
Expert:  Tax.appeal.168 replied 5 years ago.
Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

In order to better assist, I need to make sure that I understand you. Your question is how do you prepare a Form 1040 and a Schedule D....correct? Let me first ask you this;

1) I am assuming that you be using a tax software program. If so, there is an interview process the software will take you through asking certain questions pertaining to your income (wages, tips, salaries, etc.), and dependents. This information will be automatically transferred onto the Form 1040.

2) The Schedule D is for capital gains and losses. Do you have the necessary information, such as knowing whether the asset is a short or long term asset, original purchase price, and the selling price. In order to determine the gain or loss you will need to know this information.
Customer: replied 5 years ago.
I am confused about where certain items listed go
Expert:  Tax.appeal.168 replied 5 years ago.
Hello again,

If you let me know what items your are referring to, I will attempt to assist you.

Thank you.
Customer: replied 5 years ago.
1. Spencer received a K-1 from a partnership indicating that his share of the partnership STCL is $200.

2. Land was sold for $35,000. The land was received as a property settlement on January 10, 2001, when the land's FMV amounted to $30,000. His ex-wife's basis for the land, purchased on January 10, 1991, was $18,000.

3. A personal-use computer acquired on March 2 for $4,000 was sold for $2,480.

4. A membership card for a presigous country club was sold for $8500. The card was acquired on October 10, 1993, for $6,000.

5. Marketable securities held as an investment were sold for $20,000. The securities were inherited from his uncle, who died on March 10 of the current year when FMV of the securities was $21,000. The uncle purchased the securities on May 10, 1990 for $10,700.

In addition, he received $100 refund of the state income taxes paid last year.
Expert:  Tax.appeal.168 replied 5 years ago.
1. Schedule K-1 income reported on Line 17 of form 1040

2. Land sale reported on Schedule D, amount transfer to Form 1040, Line 13.

3. Sale of the personal use computer,...not tax deductible

4. If the membership card was not for business use,...not tax deductible

5. Marketable securities reported on Schedule D, transfers to Form 1040, Line 13.

$100 state tax refund is reported on Line 10 of the 1040
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