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Joseph and Diana Cohen are married and live in Pleasantville, New Jersey. Joseph is the Vice President of Sales at a small start-up company. Diana is a former advertising executive who currently consults with former clients. She also serves on the board of directors of an advertising company. The Cohens have three children Rebecca (age 20), Alan (age 15), and David (age 12) that they fully support. In January, Rebecca left home to attend a liberal arts college. Joseph and Diana also support Diana's aunt, Gina Black, who lives in Tucson. Gina's only source of income is her Social Security income (tax free), and the Cohens pay all of her support. The Cohens provided the following information: - Joseph's SSN is 598-94-2583 - Diana's SSN is 301-52-2942 - Rebecca's SSN is 887-44-8710 - Alan's SSN is 810-42-9092 - David's SSN is 855-11-3021 - Gina's SSN is 233-44-9580 - The Cohen's mailing address is 385 your last name Drive, Pleasantville, New Jersey 08233 Joseph Cohen reported the following information related to his employment during the year: Diana Cohen's consulting business (Cohen Consulting) received the following revenue during the year (she uses the cash method of accounting). C During the year, Diana paid the following business expenses: Diana drove 290 business miles for her consulting-related activities. You may assume the IRS standard mileage rate is 65.5 cents per mile for 2023. Diana works out of her home office, which is 295 square feet. The size of her entire home is 3,400 square feet. She uses the simplified method of calculating any potential home office deduction. She purchased a computer ($900) and printer ($460) for her business. Assume she wants to maximize the depreciation deduction for the year on these assets. (You do not need to complete Form 4562.) Diana is also on the Board of Directors at Natural Sunshine. She will complete a second Schedule C for her director income and expenses. Diana drove 315 business miles for her board of director activities. For purposes of this project, you may ignore AMT, any loss limitation rules, and any credits beyond what we've discussed in class. There is only one credit relevant to these facts that you need to calculate, and you may assume it is all nonrefundable (i.e., report the credit on Form 1040 line 19). You should consider the qualified business income deduction. You may simply include any QBI deduction on the 1040 without filling out additional forms. The Cohens received the following during the year: The Cohens had the following activity in their investment brokerage account during the year (read carefully): Relevant tax basis/holding period information related to sales of securities in the current year (read carefully): Purchased 2,000 shares of Microsoft on 5/1/2023 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/2016 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/2015 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/2023 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/2012. The Cohens' basis in the stock is $7,000. Purchased 100 shares of Union Pacific on 9/5/2022 for $6,000 In May, Joseph was injured in an accident at work. The injury prevented Joseph from working for about a month. During this time, Joseph received $15,000 in workers' compensation payments. The Cohens purchased an annuity in 2014 for $75,000. The annuity pays $6,000 per year for 25 years, starting in 2019. Joseph received several gifts from his parents during the year. They gave him $25,000 in cash on his birthday. Additionally, they gave him 400 shares of TimeWarner stock. The stock was purchased in 2001 for $18,050, and on the date of the gift was valued at $15,000. Joseph has not sold the stock as of December 31, 2023. \begin{tabular}{|c|c|c|} \hline SCHEDULE D & & OMB No. 1545-0074 \\ \hline \begin{tabular}{l} Department of the Treasury \\ Internal Revenue Service \end{tabular} & \begin{tabular}{l} Attach to Form 1040, 1040-SR, or 1040-NR. \\ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. \\ Go to www.irs.gov/ScheduleD for instructions and the latest information. \end{tabular} & \begin{tabular}{l} Attachment \\ Sequence No. 12 \end{tabular} \\ \hline Name(s) shown on return & & Your social security number \\ \hline \end{tabular} Part I Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|r|}{\begin{tabular}{l} See instructions for how to figure the amounts to enter on the \\ lines below. \\ This form may be easier to complete if you round off cents to \\ whole dollars. \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{l} (d) \\ Proceeds \\ (sales price) \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{c} (e) \\ Cost \\ (or other basis) \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} (g) \\ Adjustments \\ to gain or loss from \\ Form(s) 8949, Part II, \\ line 2, column (g) \end{tabular}} & \begin{tabular}{l} (h) Gain or (loss) \\ Subtract column (e) \\ from column (d) and \\ combine the result \\ with column (g) \end{tabular} \\ \hline \multicolumn{2}{|r|}{\begin{tabular}{l} 8a Totals for all long-term transactions reported on Form \\ 1099-B for which basis was reported to the IRS and for \\ which you have no adjustments (see instructions). \\ However, if you choose to report all these transactions \\ on Form 8949 , leave this line blank and go to line 8b. \end{tabular}} & & & & & \\ \hline 8b & \begin{tabular}{l} Totals for all transactions reported on Form(s) 8949 with \\ Box D checked \\ \end{tabular} & & & & & \\ \hline 9 & \begin{tabular}{l} Totals for all transactions reported on Form(s) 8949 with \\ Box E checked \\ \end{tabular} & & & & & \\ \hline 10 & & & & & & \\ \hline \multirow{2}{*}{11} & & 11 & \\ \hline & & & & & 12 & \\ \hline 13 & Capital gain distributions. See the instructions.. & . . . . & . . . . & . . . & 13 & \\ \hline 14 & \begin{tabular}{l} Long-term capital loss carryover. Enter the amount, if an \\ Worksheet in the instructions \\ \end{tabular} & \begin{tabular}{c} from line 13 \\ ... \end{tabular} & \begin{tabular}{l} Ar Capital Los \\ . . . . . . \end{tabular} & \begin{tabular}{l} Carryover \\ . ... \end{tabular} & 14 & \\ \hline 15 & & \begin{tabular}{l} hrough 14 ir \\ . ... \\ \end{tabular} & \begin{tabular}{l} nn (h). Then, \\ . .. . \end{tabular} & \begin{tabular}{c} o to Part III \\ . ... \\ \end{tabular} & 15 & \\ \hline \end{tabular} For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040) 2023 Part III Summary 16 Combine lines 7 and 15 and enter the result - If line 16 is a gain, enter the amount from line 16 on Form 1040, 1040-SR, or 1040-NR, line 7. Then, go to line 17 below. - If line 16 is a loss, skip lines 17 through 20 below. Then, go to line 21. Also be sure to complete line 22. - If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, 1040-SR, or 1040-NR, line 7. Then, go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet 20 Are lines 18 and 19 both zero or blank and you are not filing Form 4952? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 16. Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the smaller of: - The loss on line 16; or - ($3,000), or if married filing separately, ($1,500) 21 ( ) Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, 1040-SR, or 1040-NR, line 3a? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 16. No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D (Form 1040) 2023

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