80.2K

Verified Solution

Link Copied!

BUS371 Term Assignment Spring 2019 sign Layout References Mailings Review View Help Search Joseph P. Smith and his wife Gladys G. Smith are married and file a joint return for 2018. Joseph's social security number is 499-99-4321 and he was born on 02/15/1975. Gladys social security number is 637-44-9876 and she was born on 03/30/1976. They live at 1502 Seaman Court, Flemington, NJ 08822 Mr. Smith is a construction worker employed by LLL Construction. His form W-2 from LLL Construction showed the following: Wages Withholding (federal) Withholding (state) $64,000 6,400 3,600 The Smiths have a 17-year old son, Jackson, who is enrolled in the eleventh grade at Flemington Perpetual Catholic School. Jackson's social security number is 669-90-0099. The Smiths also have an 18-year old daughter, Lois, who is a full-time freshman at Oceanside Community College (OCC), Lois's social security number is 669-90-0100. Mr. and Mrs. Smith also have full custody of Joseph's nephew, Larry Loser (social security number 664-66-6688) who is 18 years old and a part-time student at OCC. All three of the children live at home, and Joseph and Gladys pay the majority of expenses for Jackson, Lois, and Larry (none of the children work). Joseph and Gladys have the following investment income for 2018 Interest from the Trustworthy Savings Bank $425 500 Dividends (qualified) Seaside Bank stock Dividends (qualified) Seaside Gas Company stock260 Dividends (non-qualified) Hot Mutual Fund Interest on NJ State Municipal Bonds Interest on Seaside Electric Company Bonds 4500 724 1675 Joseph went to the local casino and won $2800 playing the slot machines. The n ext day he osde tlecnaily bonus ph went to the local casino and won $2800 playing the slot machines. The next day he decided to go back to the casino and unfortunately he spen (lost) $4550 that day. One of Gladys friends died during the year and Gladys received $5,000 in life insurance proceeds in July, Joseph's aunt died and left him a piece of real estate (undeveloped land) worth $65,000 Five years ago, Joseph and Gladys were divorced. Joseph married Suzy Sunshine (SS# 020-22-2222), but the marriage did not work out and they were divorced a year later. They had a child while married, Sara Sunshine (social security number 555-50-5588, age 7). Under the divorce decree, Joseph has to pay Suzy $15,000 per year until Sara reaches age 18 at which time the payment is reduced to $12,000 per year. Three years ago, Joseph and Gladys were remarried. Sara is a dependent of her mother. yRMailings Review View Help Search During 2018, Joseph spent $250 on safety glasses, $150 on steel toed work boots, $100 on a reflective vest to use while directing traffic, and $300 on jeans that he wears to work. He also spent $2250 on tools that he uses for work. LLL Construction gave him $1000 to use to purchase a demolition saw (not part of the $2250 spent on tools, and not included in his paycheck) Joseph is tired of working in construction and went back to school, part time, in January. He spent $3600 on tuition to the local community college and has a 1098-T supporting that expense. He has never been enrolled in higher education prior to this time. He paid for the tuition using a student loan. Gladys was laid off from her job on January 2, 2018 and received unemployment compensation of $6,000 during 2018. Joseph and his family are covered under a health insurance plan provided by LLL Construction, and LLL pays $300 per month and Joseph pays $250 per month for this plan (the $250 is deducted pre-tax from Joseph's paycheck). During the year, Gladys had an emergency appendectomy; the total bill was $22,500, the insurance covered $8,000 and Joseph and Gladys paid the remainder. On September 1, 2018 Gladys took a job as a medical transcriptionist and works from home as an independent contractor. She does her work on the dining room table. The house is 2000 square feet, and the dining room is 400 square feet. Her income and expenses follow Income (paid on a 1099-Misc) Home office expenses (direct) Home office expenses (indirect, but not allocated Office expenses Computer sunolies $19,050 $2600 $12,000 1,380 ign Layout References Mailings Review View Help Search an independent contractor. She does her work on the dining room table. The house is 2000 square feet, and the dining room is 400 square feet. Her income and expenses follow $19,050 $2600 Income (paid on a 1099-Misc) Home office expenses (direct) Home office expenses (indirect, but not allocated) Office expenses Computer supplies Telephone Faxes (sent from Staples) Internet service $12,000 1,380 800 300 250 480 In addition to the above items, Gladys incurred travel expenses to attend a seminar on medical transcription. She spent $600 on airfare, $450 on lodging, $325 on a rental car, and $560 on meals. Gladys has documentation for these expenses Gladys drove her 2014 Land Rover 2,845 miles for business related purposes, and the vehicle was driven a total of 8,646 miles during the year. Gladys uses the standard mileage rates and has substantiation for the mileage. Layout References Mailings Review View Help Search In July, Joseph loaned a fried $3,000 to purchase a car. His friend lost his job in 2018 and has not made any payments on the loan. He plans to start making payments again, however, with additional interest as soon as he has new employment. Joseph and Gladys paid the following in 2018 (all by check or can otherwise be substantiated): $2600 7,000 Contributions to Flemington Perpetual Catholic Church Tuition to the Flemington Perpetual Catholic School (for Jackson) Clothes to the Salvation Army (10 bags in good condition) 275 250 Contributions to a local politician's re-relection campaign Psychotherapy for Gladys Eyeglasses for Jacksorn Prescription medication and drugs Credit card interest Interest on Glady's student loans nvestment interest on stock margin account 1,000 375 1,850 2,345 3,125 345 900 1,600 Auto loan interest Auto insurance Dave Deduction, CPA, for preparation of last year's tax return Safe deposit rental for storage of stocks and tax data Contribution to educational savings account for Jackson Home mortgage interest Home property (real estate) taxes 200 100 1,000 6,910 14,400 June, $6500 to replace the shed, but loseph built a new shed himself for $1800. , a hurricane destroyed a large shed on their property. The insurance company paid Joseph's grandfather died and left a portflio of municipal bonds. In 2018 Joseph receivert BUS371 Term Assignment Spring 2019 sign Layout References Mailings Review View Help Search Joseph P. Smith and his wife Gladys G. Smith are married and file a joint return for 2018. Joseph's social security number is 499-99-4321 and he was born on 02/15/1975. Gladys social security number is 637-44-9876 and she was born on 03/30/1976. They live at 1502 Seaman Court, Flemington, NJ 08822 Mr. Smith is a construction worker employed by LLL Construction. His form W-2 from LLL Construction showed the following: Wages Withholding (federal) Withholding (state) $64,000 6,400 3,600 The Smiths have a 17-year old son, Jackson, who is enrolled in the eleventh grade at Flemington Perpetual Catholic School. Jackson's social security number is 669-90-0099. The Smiths also have an 18-year old daughter, Lois, who is a full-time freshman at Oceanside Community College (OCC), Lois's social security number is 669-90-0100. Mr. and Mrs. Smith also have full custody of Joseph's nephew, Larry Loser (social security number 664-66-6688) who is 18 years old and a part-time student at OCC. All three of the children live at home, and Joseph and Gladys pay the majority of expenses for Jackson, Lois, and Larry (none of the children work). Joseph and Gladys have the following investment income for 2018 Interest from the Trustworthy Savings Bank $425 500 Dividends (qualified) Seaside Bank stock Dividends (qualified) Seaside Gas Company stock260 Dividends (non-qualified) Hot Mutual Fund Interest on NJ State Municipal Bonds Interest on Seaside Electric Company Bonds 4500 724 1675 Joseph went to the local casino and won $2800 playing the slot machines. The n ext day he osde tlecnaily bonus ph went to the local casino and won $2800 playing the slot machines. The next day he decided to go back to the casino and unfortunately he spen (lost) $4550 that day. One of Gladys friends died during the year and Gladys received $5,000 in life insurance proceeds in July, Joseph's aunt died and left him a piece of real estate (undeveloped land) worth $65,000 Five years ago, Joseph and Gladys were divorced. Joseph married Suzy Sunshine (SS# 020-22-2222), but the marriage did not work out and they were divorced a year later. They had a child while married, Sara Sunshine (social security number 555-50-5588, age 7). Under the divorce decree, Joseph has to pay Suzy $15,000 per year until Sara reaches age 18 at which time the payment is reduced to $12,000 per year. Three years ago, Joseph and Gladys were remarried. Sara is a dependent of her mother. yRMailings Review View Help Search During 2018, Joseph spent $250 on safety glasses, $150 on steel toed work boots, $100 on a reflective vest to use while directing traffic, and $300 on jeans that he wears to work. He also spent $2250 on tools that he uses for work. LLL Construction gave him $1000 to use to purchase a demolition saw (not part of the $2250 spent on tools, and not included in his paycheck) Joseph is tired of working in construction and went back to school, part time, in January. He spent $3600 on tuition to the local community college and has a 1098-T supporting that expense. He has never been enrolled in higher education prior to this time. He paid for the tuition using a student loan. Gladys was laid off from her job on January 2, 2018 and received unemployment compensation of $6,000 during 2018. Joseph and his family are covered under a health insurance plan provided by LLL Construction, and LLL pays $300 per month and Joseph pays $250 per month for this plan (the $250 is deducted pre-tax from Joseph's paycheck). During the year, Gladys had an emergency appendectomy; the total bill was $22,500, the insurance covered $8,000 and Joseph and Gladys paid the remainder. On September 1, 2018 Gladys took a job as a medical transcriptionist and works from home as an independent contractor. She does her work on the dining room table. The house is 2000 square feet, and the dining room is 400 square feet. Her income and expenses follow Income (paid on a 1099-Misc) Home office expenses (direct) Home office expenses (indirect, but not allocated Office expenses Computer sunolies $19,050 $2600 $12,000 1,380 ign Layout References Mailings Review View Help Search an independent contractor. She does her work on the dining room table. The house is 2000 square feet, and the dining room is 400 square feet. Her income and expenses follow $19,050 $2600 Income (paid on a 1099-Misc) Home office expenses (direct) Home office expenses (indirect, but not allocated) Office expenses Computer supplies Telephone Faxes (sent from Staples) Internet service $12,000 1,380 800 300 250 480 In addition to the above items, Gladys incurred travel expenses to attend a seminar on medical transcription. She spent $600 on airfare, $450 on lodging, $325 on a rental car, and $560 on meals. Gladys has documentation for these expenses Gladys drove her 2014 Land Rover 2,845 miles for business related purposes, and the vehicle was driven a total of 8,646 miles during the year. Gladys uses the standard mileage rates and has substantiation for the mileage. Layout References Mailings Review View Help Search In July, Joseph loaned a fried $3,000 to purchase a car. His friend lost his job in 2018 and has not made any payments on the loan. He plans to start making payments again, however, with additional interest as soon as he has new employment. Joseph and Gladys paid the following in 2018 (all by check or can otherwise be substantiated): $2600 7,000 Contributions to Flemington Perpetual Catholic Church Tuition to the Flemington Perpetual Catholic School (for Jackson) Clothes to the Salvation Army (10 bags in good condition) 275 250 Contributions to a local politician's re-relection campaign Psychotherapy for Gladys Eyeglasses for Jacksorn Prescription medication and drugs Credit card interest Interest on Glady's student loans nvestment interest on stock margin account 1,000 375 1,850 2,345 3,125 345 900 1,600 Auto loan interest Auto insurance Dave Deduction, CPA, for preparation of last year's tax return Safe deposit rental for storage of stocks and tax data Contribution to educational savings account for Jackson Home mortgage interest Home property (real estate) taxes 200 100 1,000 6,910 14,400 June, $6500 to replace the shed, but loseph built a new shed himself for $1800. , a hurricane destroyed a large shed on their property. The insurance company paid Joseph's grandfather died and left a portflio of municipal bonds. In 2018 Joseph receivert

Answer & Explanation Solved by verified expert

See Answer