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COMPREHENSIVE PROBLEM5 With Emphasis on Schedule D Matthew Flaws is a single taxpayer and lives at 5670 Sierra Drve, Honolulu, HI 96822. He has income from a job as a marketing representative, interest income, dividend income, and stock investments. Some of his investments are in a mutual fund. His social security number is 412-34-5670. For the tax year 2018, Matthew had the following income information Page B-6 $118.000 Wages Social security tax withholding 7,316 Medicare tax withholding 1,711 Federal income tax withholding 17,350 State income tax withholding 3,600 Matthew had the following investment income $1,763 Foundation Bank 1099-INT Great Return Mutual Fund 1099-INT 500 Great Return Mutual Fund 1099-DIV 700 (ordinary dividends) (S0 Qualified) Great Return Mutual Fund 1099-DIV CGD 3.632 (capital gain distribution) Matthew had the following investment sales: A 1099-B from Great Return Mutual Fund for the sale of 100 shares of the fund. Matthew had purchased 50 shares on September 21 2017, for $650: 50 shares on October 1. 2017, for $500; and 50 shares on November 30, 2017. for $800. He sold 100 shares on June 13 2018, for $700. Matthew uses the average cost method to calculate the cost basis of his fund shares. A 1099-B from XYZ Brokerage Company for $5,500 gross proceeds from the October 21. 2018. sale of 50 shares of Liquid Rhino Marketing. The shares were originally purchased on October 22, 2017. for $2,500. A 1099-B from ABC Brokerage Company for $2.000 gross proceeds from the November 2. 2018, sale of 60 shares of Crestwood February 18, 2018. The shares had an FMV of $2,500 on his Company. Matthew originally inherited the shares from his grandfather on grandfather's date of death. His grandfather originally purchased the shares for $400 in 1990 Other information: Matthew had a capital loss caryover from 2017; $1,990 short-term. Matthew had the following itemized deductions: Medical insurance premiums S5,000 Real estate taxes 6,210 Home mortgage interest (Form 1098) 21,600 Cash charitable contributions 2,000 200 Tax preparation fee Matthew does not want to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Matthew had qualifying health care coverage at all times during the tax year Required Complete the 2018 tax return for Matthew Flaws. For any missing information, make reasonable assumptions. COMPREHENSIVE PROBLEM5 With Emphasis on Schedule D Matthew Flaws is a single taxpayer and lives at 5670 Sierra Drve, Honolulu, HI 96822. He has income from a job as a marketing representative, interest income, dividend income, and stock investments. Some of his investments are in a mutual fund. His social security number is 412-34-5670. For the tax year 2018, Matthew had the following income information Page B-6 $118.000 Wages Social security tax withholding 7,316 Medicare tax withholding 1,711 Federal income tax withholding 17,350 State income tax withholding 3,600 Matthew had the following investment income $1,763 Foundation Bank 1099-INT Great Return Mutual Fund 1099-INT 500 Great Return Mutual Fund 1099-DIV 700 (ordinary dividends) (S0 Qualified) Great Return Mutual Fund 1099-DIV CGD 3.632 (capital gain distribution) Matthew had the following investment sales: A 1099-B from Great Return Mutual Fund for the sale of 100 shares of the fund. Matthew had purchased 50 shares on September 21 2017, for $650: 50 shares on October 1. 2017, for $500; and 50 shares on November 30, 2017. for $800. He sold 100 shares on June 13 2018, for $700. Matthew uses the average cost method to calculate the cost basis of his fund shares. A 1099-B from XYZ Brokerage Company for $5,500 gross proceeds from the October 21. 2018. sale of 50 shares of Liquid Rhino Marketing. The shares were originally purchased on October 22, 2017. for $2,500. A 1099-B from ABC Brokerage Company for $2.000 gross proceeds from the November 2. 2018, sale of 60 shares of Crestwood February 18, 2018. The shares had an FMV of $2,500 on his Company. Matthew originally inherited the shares from his grandfather on grandfather's date of death. His grandfather originally purchased the shares for $400 in 1990 Other information: Matthew had a capital loss caryover from 2017; $1,990 short-term. Matthew had the following itemized deductions: Medical insurance premiums S5,000 Real estate taxes 6,210 Home mortgage interest (Form 1098) 21,600 Cash charitable contributions 2,000 200 Tax preparation fee Matthew does not want to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Matthew had qualifying health care coverage at all times during the tax year Required Complete the 2018 tax return for Matthew Flaws. For any missing information, make reasonable assumptions

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