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COMPREHENSIVE PROBLEM!!!!

Your clients, Simon and Rebecca Sawyer, brought in bags of documents and receipts that's good, right? Simon and Rebecca are a married couple with 2 wonderful kids, Tom and Maddie. Simon is self-employed and owns a printing business while Rebecca is employed as a sales representative for a pharmaceutical company. The birthdates and social security #s are as follows: Simon 111-22-3333 09/27/75 Rebecca 999-88-7777 06/06/75 Tom 444-55-6666 03/01/00 Maddie 777-66-5555 12/25/08 Items you should know about the family:

1st they like to donate to charity, or at least they believe all of them are charities: American Cancer Society - $905 First Presbyterian Church - $2,500 Elizabeth Warren Presidential - $2,000 Make-A-Wish - $550 York College of PA - $750 Simon's needy friend - $10,000 Also, they donated a painting to the Museum of Modern Art, which displayed the portrait for its educational purposes. The painting was purchased by Rebecca 3 years ago for $2,300. The FMV is $4,250. An appraisal was done. 2nd During the year, Simon and Rebecca decided to move. They bought their first house on July 4, 2009 for $235,000 and were able to sell it for $350,000 on August 25, 2019 a decent return for selling their home. After selling, they decided to rent an apartment rather than buying another home.

3rd Simon inherited stock from his deceased aunt on July 18, 2019. The stock is Bai Juices, Inc. that the aunt had purchased on May 1, 2001 for $22/share and totaled 500 shares of stock. The value at the time of the aunt's death was $42/share. Simon sold all the shares of Bai Juices, Inc. stock on October 15, 2019 for $53/share. Also, Simon inherited $48,000 in cash from the estate of the deceased aunt.

4th Rebecca bought 150 share of Lemona Soda, Inc. stock on April 15, 2008 (cost of $22/share) and sold it June 20, 2019 (sale was $48/share) Rebecca bought 12,000 share of a penny stock named Soupa Doupa, Inc. on October 15, 2018 (cost was $.25/share). On September 27, 2019 that stock was determined to be worthless.

5^th medical expenses for the family prescriptions - $4,225, doctors - $6,200, cost of rhinoplastyose job for Rebecca (she didn't like the size of her nose) - $4,725, eyeglasses - $1,750, and braces for little Maddie - $3,250.

6t^h House expenses real estate taxes on the old home was $6,365 and the mortgage interest was $10,874. This amount is attributed to the Sawyers for the time in that home, not to be prorated.

7th Interest Income:

Savings account interest at M& T Bank - $560 Pennsylvania municipal bond interest - $3,730 US savings bond interest $2,675

8th the Sawyers own a rental property in which they rent (they do not live in it) at 1000 Market Street in York. Rent received for the year was $12,900. The expenses for the property are as follows: depreciation of $4,850, utilities of $4,748, repairs of $2,790, and real estate taxes of $6,300.

9th Tom is a junior at South Central University. For the year, Simon and Rebecca paid $15,000 to South Central Univ for Tom's tuition, fees, and books.

10th Simon contributed $6,000 to a Traditional IRA for the year 2019. Rebecca contributed $6,000 to a Roth IRA for the year 2019.

11t^h Now for the Simon's business - which is a printing company. Simon has no employees, just himself.

Sales for year - $525,000

Expenses Materials - $314,000 Office Expenses - $20,890

Supplies - $72,000 Insurance (non-health) - $46,848

Assets on the books for the business are equipment purchased on 10/15/17 for $17,750 and office furniture & fixtures in 03/15/18 for $22,500. In addition, Simon purchased a new printing machine (equipment) this year on August 22, 2019 for $7,325. For the assets from 2017 and 2018, no section 179 nor bonus depreciation was elected in either year and the assets were the only items purchased for each of those years.

The assignment is to prepare a 2019 US Income Tax return Form 1040 and any supporting schedules (such as Schedule A and number schedules like Schedule 1)

22222 Vold 1 a Employee's social security number For Official Use Only 999-88-7777 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 23-1234567 63,2500 c Employer's name, address, and ZIP code 3 Social security wages ABC Pharmacy 63,25000 696 Any Lane 5 Medicare wages and tips York, PA 17403 63,250 00 7 Social security tips 2 Federal income tax withheld 14. 320,00 4 Social security tax withheld - 3.921.50 6 Medicare tax withheld 91712 8 Allocated tips 10 Dependent care benefits d Control number 101 e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 13 Retirement Statutory employee Third-party sick pay 12b plan REBECCA | SAWYER 925 Sky view Drive York, PA 17403 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 12345678 632500 .94.1178 63250 790.62 YORK W-2 Wage and Tax Statement Department of the Treasury-Internal Revenue Service Form For Privacy Act and Paperwork Reduction Copy A For Social Security Administration - Send this entire page with Act Notice, see the separate Instructions. Form W-3 to the Social Security Administration; photocopies are not acceptable. Cat. No. 10134D Do Not Cut, Fold, or Staple Forms on This Page 22222 Vold 1 a Employee's social security number For Official Use Only 999-88-7777 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 23-1234567 63,2500 c Employer's name, address, and ZIP code 3 Social security wages ABC Pharmacy 63,25000 696 Any Lane 5 Medicare wages and tips York, PA 17403 63,250 00 7 Social security tips 2 Federal income tax withheld 14. 320,00 4 Social security tax withheld - 3.921.50 6 Medicare tax withheld 91712 8 Allocated tips 10 Dependent care benefits d Control number 101 e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 13 Retirement Statutory employee Third-party sick pay 12b plan REBECCA | SAWYER 925 Sky view Drive York, PA 17403 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 12345678 632500 .94.1178 63250 790.62 YORK W-2 Wage and Tax Statement Department of the Treasury-Internal Revenue Service Form For Privacy Act and Paperwork Reduction Copy A For Social Security Administration - Send this entire page with Act Notice, see the separate Instructions. Form W-3 to the Social Security Administration; photocopies are not acceptable. Cat. No. 10134D Do Not Cut, Fold, or Staple Forms on This Page

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