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Question: Skylar and Walter Black have been married


Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walt is a high school teacher. Skylar’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar’s mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter’s father, Alton Black (Social Security number 34322-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton’s support. Walt’s earnings from teaching are:



Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walt is a high school teacher. Skylar’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar’s mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter’s father, Alton Black (Social Security number 34322-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton’s support. Walt’s earnings from teaching are:




The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks received the following 1099-DIV from their mutual fund investments:




The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:




The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required:
Complete the Black’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E, Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.
 

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks received the following 1099-DIV from their mutual fund investments:



Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walt is a high school teacher. Skylar’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar’s mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter’s father, Alton Black (Social Security number 34322-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton’s support. Walt’s earnings from teaching are:




The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks received the following 1099-DIV from their mutual fund investments:




The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:




The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required:
Complete the Black’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E, Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.
 

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:



Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walt is a high school teacher. Skylar’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar’s mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter’s father, Alton Black (Social Security number 34322-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton’s support. Walt’s earnings from teaching are:




The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks received the following 1099-DIV from their mutual fund investments:




The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:




The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required:
Complete the Black’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E, Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.
 

The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required:
Complete the Black’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E, Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.
 





Transcribed Image Text:

700-01-0002 Sato, accurala, FASTI Use VE the lS webale a e file www.sgow OMB No. 1545-000 b Employer denincallon number (EN 31-1238967 e Employer'sname, ade, and ZPcode 1 wayes pa o Cpernen 50,900.00 2 Federancome lax W 4,320.00 30 yt w 3,155.80 6 Modicare lax witheid 738.05 Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 50,900.00 5 Modcare wagen and ips 50,900.00 7 Soc y lips * Acled p d Control number Varication code 10 Deperden care benits O Emplyee's ist name andal Last nem SU 11 Nongaled pla 12a See irstrucions lor box 12 DD| 7,800.00 12b Walter Black spy 883 Scrub Brush Street, Apt # 52B Las Vegas, NV 89125 14 Other 12 12 1 Empioyoe's address and ZIP code 15 s Employer's stale D number NV 16 wag, , e 17 Stato incoo t 18 Lool w, e, k 19 Local 20 Loy Form W-2 Wage and Tax Statement Departmant of the Treasury-internal Revenue Servioe 2018 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is boing furnished to the Intemal Rovonuo Sorvice. O CORRECTED (if checked) OMB No. 1545-0110 PAYER'S name, sroet address, cily or lown, stale or province, country, ZP 1a Total ordinary dvidends or loroign postal oode, and talsphone no. 1,400.00 Dividends and Distributions 24 2018 Cyber Funds Equities Fund 41 Wall Street 1b Quled divends New York, NY 10005 24 998.00 Fom 1009-DIV 2a Total captal gain distr. 20 Unrocap. Sec. 1250 gin $ 6,543.12 2e Section 1200 gan Copy B For Reciplent PAYERS TIN RECIPENTS TIN 24 Colectbes (28) gan 17-1234326 222-43-7690 RECIPENTS name 3 Nondvidend distributions 4 Federal ncome lax wilnek This smportant t infomation and s being fumsted to the iRs. if you are roquirod lo e a Rum, a negligence penally or other sanction may be mposed on you if ths income s ticable and the RS determines that it has not boen eportod. Skylar B. Black 5 Secion 198A divdends 24 6 Ivment espemes Sareet addrs nduding apt no 883 Scrub Brush Street #52B 7 Forsign tax pad 8 Fonign county or us. posskor Ciy or lown, sale or provinca, country, and APor lonelgn postal code Las Vegas, NV 89125 O Cash iqiktalion disitutions 10 Nonch iqidlon deatelon %24 FATCA ing 11 Exempt-intenst dvidends 12 Speciled privato activity roquiroment bond inturest dividends 24 Account number ee iretrucions 13 State 14 sititon na 15 State tax withhek Form 1099-DIV (koep for your records) www.irs.gowFom10sON Department of the Treanury - Intomal Revenue Sorvice $12,000 8,600 5,200 1,200 3,800 Rental income Mortgage interest reported on Form 1098 Homeowners' association dues Utilities Maintenance Depreciation (assume fully depreciated)


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> Thomas is an employer with two employees, Patty and Selma. Patty’s wages are $12,450 and Selma’s wages are $1,275. The state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas: a. FUTA tax before the state tax credit b. Stat

> Fly-By-Night (P.O. Box 1234, Dallas, TX 75221, EIN 12-9876543) paid George Smith, an employee who lives at 432 Second Street, Garland, TX 75040, wages of $25,400. Based on George’s final 2018 pay stub, the income tax withholding amounted to $5,380 and th

> During 2018, Palo Fiero purchases the following property for use in his calendar year­end manufacturing business: Palo uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense or take bonu

> On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $2,800. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calcul

> During 2018, William purchases the following capital assets for use in his catering business: Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the aut

> Janie owns a 40% interest in Chang Partnership. Chang has W-2 wages of $50,000 and qualified property of $450,000 in 2018. a. When computing the W-2 wages limitation, what is the amount of wages that will be allocated to Janie? b. What is the amount of q

> Calculate the following: a. The first year of depreciation on a residential rental building costing $200,000 purchased July 2, 2018. b. The second year (2019) of depreciation on a computer costing $5,000 purchased in May 2018, using the half­ year conve

> Explain the use of the mid­ quarter convention for MACRS depreciation:

2.99

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