Business and Finance Homework

Need Finance Homework Help? Ask an Expert

Ask an Expert,
Get an Answer ASAP!

Business and Finance Homework
This answer was rated:

Tax Return Problem 5 -Individual Tax Instructions: Please…

Tax Return Problem 5 -Individual...
Tax Return Problem 5 -Individual Tax
Instructions:
Please complete the 2016 federal income tax return for Joseph and Diana Cohen. You may complete the tax return using Tax Act or paper forms. The link to download Tax Act and the tax forms are located in the Student Resources. The return is due Monday, December 4, 2017 at 6:00 pm.
Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. You are not required to complete the state income tax forms or calculate the AMT.
Please sign the return with your name, but do not include your social security number. Email the entire return to me by the due date.
Form 1040 (optional draft review – 11/20/17)
Schedule A for tax form 1040 (optional draft review – 11/20/17)
Schedule B for tax form 1040 (optional draft review – 10/30/17)
Schedule C for tax form 1040 (optional draft review – 11/6/17)
Schedule D for tax form 1040 (optional draft review – 10/30/17)
Form 8949 (optional draft review – 10/30/17)
Schedule E for tax form 1040 (optional draft review – 11/13/17)
Schedule SE for tax form 1040 (optional draft review – 11/6/17)
Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a small start-up company (date of birth 01/01/1965). Diana is a former advertising executive who currently consults with former clients (date of birth 01/01/1966). The Cohens have three children Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home to attend a liberal arts college. All three children qualify as Joseph and Diana’s federal income tax dependents. The Cohens plan to file a joint tax return. The Cohens provided the following information:
• Joseph’s social security number is###-##-####
• Diana’s social security number is###-##-####
• Rebecca’s social security number is###-##-####
• Alan’s social security number is###-##-####
• David’s social security number is###-##-####
• The Cohen’s mailing address is 85 North Maple Drive, Pleasantville, New Jersey 08233
Hint – Use the information above to complete lines 1-6 on page 1 of tax form 1040.
Joseph Cohen reported the following the following information relating to his employment during the year:
Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding
Alternative Energy $118,325 $29,230 $15,000
The above amounts do not reflect any income items described below. Joseph’s employer withheld all payroll taxes it was required to withhold. The entire Cohen family was covered by minimum essential health insurance during each month in 2016. The insurance was provided by Joseph’s employer, Alternative Energy.
Hint – See Chapter 5 on how to report the salary (Income Summary at the end of the chapter). See Chapter 8 on how to report the federal income tax withholding (Income Summary at the end of the chapter). The state income tax withholding is reported on Schedule A. See Chapter 6 on how to report the state income tax withholding.
Diana Cohen received the following revenue during the year (she uses the cash method of accounting).
Consulting revenue reported to her on a Form 1099-MISC, Box 7
High-end Retail $32,000
Jensen’s Health Products $8,500
Strategic Solutions $3,750
During the year, Diana paid the following business expenses:
Consultant-related:
Airfare $2,900
Hotel $1,450
Meals $390
Parking $320
Diana’s business activity does not require the filing of Form(s) 1099 to report payments she made during the tax year.
Hint – See Chapter 9 Exhibit 9-7 for an example of Schedule C. Remember to calculate the self-employment taxes on Schedule SE. The self-employment taxes will require reporting the deductible portion as a for AGI deduction on page 1 of the 1040, and the tax as an “Other Taxes” on page 2 of the 1040.
The Cohens also received the following during the year:
Interest income from First Bank of New Jersey $320
Interest income from Patterson, New Jersey School District $200
Interest income from U.S. Treasury Bond $350
Interest income from General Mills corporate bond $400
Qualified dividend income from Rio Tinto $1,500
Qualified dividend income from Microsoft $750
Dividend income (not qualified) from China Fund $2,000
The Cohens did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year.
Hint – See Chapter 7 for interest and dividend income and use tax form Schedule B to report the interest and dividend income. Follow the instructions on lines 4 and 6 to report the income on tax form 1040.
Remember to report any tax-exempt interest on line 8b. All dividend income is reported on line 9a, but only the qualified dividend income is reported on line 9b.
Remember qualified dividends are taxed at the preferential tax rates (see page 7-6). To calculate the tax liability, use the following steps.
1. Taxable Income less qualified dividends = taxable income at regular tax rates
2. Calculate the tax on the amount in step 1 at regular tax rates (tax rate schedules)
3. Calcuate the tax on the qualified dividends
4. Add the tax amounts from steps 2 and 3 for the total tax liability
The Cohens had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B. Basis information on each stock sale was reported to the IRS):
Sold 2,000 shares of Microsoft 7/1/16 $22,500
Sold 75 shares of Apple, Inc. (Hint – not all shares sold) 4/15/16 $28,750
Relevant tax basis/holding period information related to sales of securities in the current year:
Purchased 2,000 shares of Microsoft on 5/1/16 for $21,000
Purchased 200 shares of Apple, Inc. on 3/8/2013 for $90,000
The Cohens have a $43,000 long-term capital loss carryover from their prior tax year.
Hint – See Chapter 7 and use tax forms Schedule D and 8949 to report the stock sales. Start with form 8949 and follow the instructions on how and where to report on Schedule D. Then Schedule D will provide instructions on how and where to report on tax form 1040.
To start form 8949, first separate the short term and long term stock sales. Next fill in form 8949 by reporting the short-term sales in Part I and the long-term sales in Part II. One of the stock sales contains both a short term sale and long term sale. Report the short-term stock shares in Part I and the long-term stock sales in Part II.
Next complete Schedule D. You need to complete lines 1b, 7, 8b, 14, 15, 16 and 21. You will report the carryover loss on line 14.
Remember to consider the capital loss limitations. Examples of tax form 8949 and Schedule D are shown in Exhibits 7-5 and 7-6.
Diana is a 10% owner in an advertising agency named Bright Ideas (“BI”) (EIN 20-1234567). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from BI reporting her allocation of this business income. Sarah acquired the stock several years ago. Her basis in the stock before considering her 2016 income allocation was $92,000. Sarah is a passive owner with respect to this entity.
Hint – See Chapter 5 Exhibits 5-4 and 5-7. Report the S corporation income on Schedule E Part II on lines 28, 30, 32 and 41. The amount on line 41 is the amount that is reported on tax form 1040.
In May, Joseph was injured in a home accident. The injury prevented Joseph from working for about a month. During this time, Joseph received $15,000 in disability payments attributable to a disability insurance policy. The disability policy premiums were paid on Joseph’s behalf as a nontaxable fringe benefit.
Hint – See Chapter 5 page 5-30 Disability Insurance. If there is any taxable income as a result of the disability payments, it will be reported on line 7 of tax form 1040.
Hint – The income reported on line 7 of tax form 1040 could consist of 2 different amounts.
The Cohens paid the following expenses during the year:
Dentist (unreimbursed by insurance) $1,500
Doctors (unreimbursed by insurance) $ 2,425
Prescriptions (unreimbursed by insurance) $ 675
Real property taxes on residence $7,525
Vehicle property tax based upon value $1,250
Mortgage interest on principal residence $12,550
Margin interest paid to broker $600
Contribution to United Way $2,000
Contribution to American Cancer Society $5,000
Contribution to neighborhood drive to oppose development project $500
Contribution to a local church $12,000
Fee paid to Mouser, Johnson, and Hintze CPAs for tax preparation $450
The Cohens also donated clothing, electronics, furniture and other household goods to the Salvation Army of Pleasantville, New Jersey on April 15, 2016. Estimated thrift value of the goods donated was $275.
Hint – See Chapter 6. Exhibit 6-10 shows how to complete Schedule A. The medical expenses may not be deductible. Please read the instructions on line 3 of the Schedule A
Note that not all of the contributions may be deductible.
The amount of the itemized deductions are reported on line 40 on tax form 1040. You do not need to calculate any possible limitation – just enter the total amount of the itemized deductions on tax form 1040.
Miscellaneous Information
The Cohens would like to contribute to the Presidential Election Campaign. The Cohens would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.
Hint – Report the campaign contribution election on page 1 of form 1040 in the upper right hand corner. To receive the refund by check, do not complete the bank routing information. You do not need to complete form 8888.
Show More
Show Less
Ask Your Own Business and Finance Homework Question
Answered in 4 minutes by:
12/1/2017
PDtax
PDtax, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 4,827
Experience: MBA/CPA, Former college instructor and tutor.
Verified

Hi from Just Answer. I'mCustomer and can assist. But the price deposited is inadequate for the work involved.

Please confirm your deadline, then I can give you a price for a return prepared on our office software.

Customer/p>
PDtax
PDtax, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 4,827
Experience: MBA/CPA, Former college instructor and tutor.
Verified
PDtax and 87 other Business and Finance Homework Specialists are ready to help you
Ask your own question now
Customer reply replied 2 months ago
what is the price you want
Customer reply replied 2 months ago
the deposit and price I will pay if satisfied
Customer reply replied 2 months ago
deadline is on the 3rd
Customer reply replied 2 months ago
jst tell me price
Phone call session started
Customer reply replied 2 months ago
Hi , this is not a tax return for me , it is a school project .
Customer reply replied 2 months ago
HINTS I GOT FROM SCHOOL :THE ADJUSTED GROSS INCOME: (AGI IS 187247, ITEMIZED DEDUCTION IS 50,000 OR MORE , THERE IS A REFUND B/W 0 -10000. my email is***@******.*** . Use form 1040 . I will like to upload additional files , but the website is not allowing me to . Can I have an email to send it to you
Customer reply replied 2 months ago
note the question says 2016 , so you use 2016 tax rate

I sent an email to the address posted. Please use that address to send me the remaining information.

Ask Your Own Business and Finance Homework Question
Customer reply replied 2 months ago
Hi , I sent an email regarding a new question I need . just tell me the quoted price . I really need help with this . Thanks so much it due in a days time

check your email for my response.

Ask Your Own Business and Finance Homework Question
Was this answer helpful?
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 4,827
4,827 Satisfied Customers
Experience: MBA/CPA, Former college instructor and tutor.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.

EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.

RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.

DianeDallas, TX

< Previous | Next >

Meet the Experts:

linda_us

linda_us

Master's Degree

852 satisfied customers

A tutor for Business, Finance, Accounts and other related topics.

F. Naz

F. Naz

Bachelor's Degree

540 satisfied customers

Have completed B.COM and CA Finalist

Bizhelp

Bizhelp

Accountant

260 satisfied customers

BA degree and Certified Public Accountant

214 satisfied customers

dasdasd

Mr. Gregory White

Mr. Gregory White

Master's Degree

211 satisfied customers

M.A., M.S. Education / Educational Administration

Brittany

Brittany

Professional

30 satisfied customers

AA/Accounting BS/Business

Dimitry K., Esq.

Dimitry K., Esq.

Doctoral Degree

19 satisfied customers

JD/MBA, Business Attorney

< Previous | Next >

Related Business and Finance Homework Questions
It's not a tax question. I need to calculate NPV, and IRR
Hi, it's not a tax question. I need to calculate NPV, and IRR for a company that initially invested $50,000 and yields the following cash flows Year 1 - 10,000 … read more
Expert
Expert
214 satisfied customers
I see that you have done both the Purchase Point and Moto
Hello - I see that you have done both the Purchase Point and Moto Mart cases. I'd like to get both of those so I can compare to my own work. Can you let me know the cost? Thank you… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Your client is 20 years old; and she wants to begin saving
Your client is 20 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $10,000 per year; and you advise her to invest it in the stock… read more
PDtax
PDtax
Master's Degree
4,827 satisfied customers
I have a question regarding a Business Marketing paper I
I have a question regarding a Business Marketing paper I need assistance with. It is about 4-8 pages in length.… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Back in Boston, has been busy creating and managing his new
Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various… read more
Expert
Expert
214 satisfied customers
Compute the income tax provision for Tulip City Flowers Inc.
compute the income tax provision for Tulip City Flowers Inc. (TCF) as of December 31, 2017. The company's federal income tax rate is 34 percent. The company's income statement for 2017 is attached.You… read more
Expert
Expert
214 satisfied customers
Is the sole proprietor of a successful small business and
Anna is the sole proprietor of a successful small business and she is looking to expand. Anna also holds stock in "x" corporation and could take a distribution from the corporation in order to fund th… read more
Expert
Expert
214 satisfied customers
Cadillac Square Corporation determined that $1,000,000 of
Cadillac Square Corporation determined that $1,000,000 of its domestic production activities deduction (DPAD) on its current-year tax return was uncertain, but that it was more likely than not to be s… read more
Expert
Expert
214 satisfied customers
I have a tax question. On June 6, 1990, Mia's aunt gave her
On June 6, 1990, Mia's aunt gave her a tract of land near Scottsdale, AZ as a wedding present. The land cost the aunt $85,000 but had a fair market value of $100,000 (no gift tax resulted). Since then Mia has held the property as an investment. In the CTY, she was offered $300,000 from a local golf course developer for the tract. After consulting a tax advisor and a realtor, she agreed to exchange the Scottsdale tract for similar land in Flagstaff, AZ worth $250,000 and $50,000 in cash. On August 6 of the CTY, the transaction was completed in the realtor's office. Mia plans to hold the Flagstaff tract as an investment since she thinks it has appreciation potential. … read more
PDtax
PDtax
Master's Degree
4,827 satisfied customers
Mickey, Mickayla, and (MMT), are starting a new business. As
Mickey, Mickayla, and Taylor (MMT), are starting a new business. As a starting contribution, Mickey is contributing $200,000 in exchange for a 40% ownership interest, Mickayla is contributing a buildi… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
What is meant by accounts receivable? Money owed to a
What is meant by accounts receivable? Money owed to a company by its debtors Money owed by a company to its creditors Money owed to a company by its employees Money owed by a company to its vendors… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
QUESTION 1: A start-up company, Macrotech, plans to produce
QUESTION 1:A start-up company, Macrotech, plans to produce a device to translate Morse code to a written message on a home computer and to send written messages in Morse code over the airwaves. The de… read more
FlyingCPA
FlyingCPA
Senior Manager
Master\u0027s Degree
3 satisfied customers
Your client is looking to start a plumbing and heating
Your client is looking to start a plumbing and heating business and is looking for advice on how to structure this new business entity. He will be the only employee and plans to purchase a van and bas… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
TCO 5) Misty Company reported the following before-tax items
TCO 5) Misty Company reported the following before-tax items during the current year:Sales - $600 Operating expenses - $250 Restructuring charges - $20 Extraordinary loss - $50Misty's effective tax ra… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
What is implied by zero values for “other income” and
What is implied by zero values for “other income” and “depreciation” on income statement? … read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
We are the plaintiff in a large lawsuit and believe that it
We are the plaintiff in a large lawsuit and believe that it is extremely likely that we will win. We that that this will have a large positive effect on our stock price. Can we book it? Why or why not… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
In the 1980s, when Congress developed the generous
In the 1980s, when Congress developed the generous depreciation methods called ACRS and MACRS, one justification was to encourage business investment in long-lived assets by accelerating much of the d… read more
PDtax
PDtax
Master's Degree
4,827 satisfied customers
Read the attached document. After reading, post your answers
Read the attached document.After reading, post your answers and arguments to the following questions:What type of interaction do you see between McDonalds and the society? Consider the four components… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x