Hello,
Can you see if you can help me with this ACCT315 (Federal Taxation) Course?
It is a manual tax return problemand would need it done by Friday November 15 around 2pm EasternTime. I had 2 services cancel on me for whateverreasons...
Please let me know
Thank you,
- DzenoDavenport University Federal Taxation I ACCT 315/715 Instructor: Judy Knapp T A X R E T U R N P R O B L E M *********************************************************** REQUIREMENT Prepare the Federal Income Tax return for Dave and Diane Cartmill for the year ended 2018 *********************************************************** Dave and Diane Cartmill are married and file a joint return. Dave was born on 3/17/1969 and Diane was born on 6/19/1973. Dave owns a used bookstore (self‑employed, Sch. C), and Diane is a college professor. Dave's Social Security number is 354-69-2250, and Diane's is 384-39-2985. The Cartmills live at 1258 Dickinson Rd, Grand Rapids, MI 49507. Their phone number is 616-584-5621. The Cartmills each designate that $3 is to go to the Presidential Election Campaign Fund. Dave has one daughter, Erin (SS# 307-50-4861; BD 08/04/1995), from a previous marriage. Erin is age 23 and a full‑time law student at Wayne State University. She worked part‑time during the year earning $3,890, which she spent for her own support. In addition, she received a $5,200 scholarship from Michigan State University. Erin lived at home while not in school and Dave and Diane provided an additional $6,800 toward Erin's support. They also provided over half the support of Diane’s son, Jason (SS# 306-15-8012, BD 05/20/1999), from a previous marriage. Jason is age 19 and a full‑ time student at Davenport University. Jason worked part‑time during the year, earning $2,900. He filed a joint return with his spouse, Kim, who earned $15,400 during the year. Dave and Diane also have twins, Kayla (SS 386-54-2189; bd 02/08/2008) and Karrie (SS 386-54-2190; bd 02/08/2008), age ten, who live with them. Dave's mother, Doris, (SS# 101-52-1317), was born on 8/26/1932. Doris is blind and lives with the Cartmills. The Cartmills pay $5,400 per year for dependent care expenses for Doris as they are both employed. The dependent care provider is Senior Care, 1215 Magna Carta, Grand Rapids, MI, 49503 (EIN# 38-6451321). In addition, Dave and his brother Mike each incurred out‑of‑pocket costs of $3,950 for Doris's support. Also, Dave provided lodging for Doris during the entire year. Dave estimates the fair rental value of the lodging is $6,000. Doris received $10,700 in Social Security Benefits and $650 of interest during the year, all of which she put in the bank. Mike is willing to do whatever is necessary to enable Dave to claim Doris as a dependent. Diane is a professor at Kalamazoo Community College (#38-7854123; 6767 W O Ave, Kalamazoo, MI 49003), where she earned $ 92,800. The University withheld Federal income tax of $9,280, state income tax of $4,697, Grand Rapids city income tax of $1,347, and the correct amount of FICA. Her employer pays for health care for the entire family. Diane has a 401K plan at work. The Cartmills received $3,450 of interest from Second Bank on a joint account. They received interest of $1,650 on City of Seattle bonds they bought in January. Dave received a dividend of $1,145 on General Bicycle Corporation stock he owns. Diane received a dividend of $1,836 on Acme Clothing Corporation stock she owns. General Bicycle and Acme Clothing are both domestic Corporations. Dave and Diane received a dividend of $ 341 on jointly owned stock in Maple Leaf Brewing Company, a Canadian corporation. All of the securities were held with a Grand Rapids brokerage firm and are “qualified dividends”. In July, a severe storm came through the area and did considerable damage to the summer home (382 Flying Dutchman, Holland, MI 49423) that they had purchased for $98,000 two years earlier. The home’s fair market value before the storm was $133,000 and the insurance agent valued the home at $75,000 after the incident. Insurance recovery was $45,000. Dave’s business, Dave’s Bargain Books, is located at 1645 Library Ave., Grand Rapids, MI. 49503, and his employer identification number is #38‑6478224. Dave's sales for the year were $323,465. He uses the cash method of accounting for tax purposes and his business expenses on the cash basis are as follows: Advertising.................................... $ 5,500 Bank service charges........................... 140 Professional dues.............................. 600 Professional journals.......................... 290 Contributions to employee benefit plans..... 8,100 Insurance on office contents................... 2,300 Accounting services............................ 4,940 Miscellaneous office expense................... 524 Store (26K) and equipment (10k) rental...... 36,000 Utilities................................................. 2,964 Telephone............................................ 843 Wages........................................... 67,926 Payroll taxes.................................. 3,678 Returns and Allowances.............. 1,800 Purchases…………………………. 58,600 Beginning Inventory………………. 61,800 Ending Inventory…………………... 24,600 Dave put 8,450 business miles on his Ford Explorer this year and 15,650 personal miles (total miles= 24,130). He uses the automatic mileage method. Dave purchased the truck July 11, 2014 and did not take any Sec 179 Immediate Expensing. He does keep written records of his mileage. June 16, 2018 Dave purchased a new business computer information system to track inventory and customers, etc., the cost was $18,200. On the same date he spent $27,625 for furniture to refurbish his office. He did elect Sec.179 Immediate Expensing, for these items. Diane's mother, Susan, died on Feb 17, 2006, leaving Diane her entire estate. Included in the estate was Susan's residence at 538 Lighthouse Ln., Holland, MI 49424. Susan's basis in the residence was $45,000. Fair market value of the residence on Feb 17, 2006 was $128,000 (this is Diane's basis). Diane began renting the house January 1, 2007. In 2018 the house was rented the entire year at $1,750 a month. The house is depreciated using the MACRS straight‑line method for residential real estate with zero salvage value. In computing depreciation, they allocate a value of $33,000 to the lot on which the house is located. They incurred the following expenses during the year on the rental property: Property insurance..................... $1,600 Property taxes.............................. 7,200 Maintenance and repairs............. 2,800 Management fees.........................1,800 The Cartmills sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2002. The stock was worth $62 per share in January. By September 3, its value had dropped to $51 per share, and the Cartmills sold the stock on that