Please complete the $2021$ federal income tax return for Daniel and Donna Coleman. Daniel and Donna Coleman live in Plymouth, Maine. Daniel is $53$ years old and the Vice$-$President of Sales at a small start$-$up company. Donna is $55$ years old and a former advertising executive who currently consults with former clients. The Colemans have two children Rachel $($age $20)$ and Adam $($age $16).$ Rachel does not work as she is a full$-$time college student at Maine University $($MU$)$ and received a $$6,000$ scholarship in $2021$ for MU tuition. Rachel was not required to perform any services as a condition of accepting the scholarship. Adam is a high school student and works during the summer for a company that runs camp sites he earned $$8,500$ in $2021.$ The Colemans plan to file a joint tax return and provided the following information:Daniels social security number is AAA$-$BB$-$CCCCDonnas social security number is BBB$-$CC$-$DDDDRachels social security number is CCC$-$DD$-$EEEEAdams social security number is DDD$-$EE$-$FFFFMailing address is $18$ Ocean Drive, Plymouth, Maine $07333$Daniel Coleman reported the following information relating to his employment during the year:Employer: Alternative CreationsGross Wages: $$148,050$Federal Income Tax Withholding: $$28,000$State Income Tax Withholding: $$11,000$Daniels employer withheld all payroll taxes it was required to withhold. The entire Coleman family was covered by minimum essential health insurance during each month in $2021.$ The insurance was provided by Daniels employer.Donna Coleman uses the cash method of accounting for her business activities which were as follows: Consulting revenue reported to her on a Form $1099-$NEC High$-$end Retail $$32,000$ Jensens Health Products $$8,509$ Strategic Solutions $$3,750$ During the year, Donna paid the following business expenses:Office expenses $$570$Professional license fees $$325$Airfare $$2,900$Hotel $$1,450$Meals $$390$ Parking $$320$Contract labor $$1,800$Donna has an office area $(400$ square feet$)$ in the home and uses the simplified method to determine her home office deduction. The total square footage of the Colemans home is $2,500.$ Donna drove $520$ business miles for her consulting$-$related activities. Donna drove a $2015$ Volvo purchased on January $1,2015$ for all her business mileage. She drove the vehicle a total of $10,605$ miles during the year for all purposes. Donna has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes.Donna made the following estimated tax payments in $2021$: $$5,000$ for Federal income taxes and $$2,000$ for state income taxes. The Colemans also received the following investment income during the year:Interest income from First Bank of Maine $$320$Interest income from a Municipal Bond $$200$Interest income from U$.$S$.$ Treasury Bond $$1,350$Qualified dividends income from Microsoft $$2,650$Dividend income $($not qualified$)$ from Grant Fund $$2,350$The Colemans did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.The Colemans had the following activity in their brokerage account during the year. All transactions were reported on a Form $1099-$B and basis information on each stock sale was reported to the IRS. Sold $1,000$ shares of Google, Inc. $5/5/21$ $$28,500$Sold $200$ shares of Apple, Inc. $7/7/21$ $$36,500$Sold $50$ shares of Union Classic $9/9/21$ $$1,500$Relevant tax basis$/$holding period information related to sales of securities in the current year:Purchased $2,000$ shares of Google, Inc. on $6/6/16$ for $$42,000$Purchased $200$ shares of Apple, Inc. on $8/8/18$ for $$34,000$Purchased $50$ shares of Union Classic on $10/10/20$ for $$3,000$The Colemans received a Maine state income tax refund of $$400$ in May of $2021.$ The Colemans received the refund because they had overpaid their Maine state individual income tax in $2020.$ On their $2020$ Federal income tax return, the Colemans itemized their deductions and received full tax benefit $($deduction$)$ for the state tax income taxes paid in $2020.$Donna is a $20\%$ owner in an advertising agency named Bright Ideas, Inc. $($BI$)($EIN XX$-$YYYZZZZ$).$ BI is a Subchapter S corporation. The company reported ordinary business income for the year of $$150,000.$ Donna received a K$-1$ from BI reporting her allocation of this business income. Donna acquired the stock several years ago. Her basis and at$-$risk amount in the stock before considering her $2021$ income allocation was $$92,000.$ Donna is a passive owner with respect to this entity.Donna is also a $20\%$ owner in Natural Sunshine, Inc. $($NS$)($EIN AA$-$BBBCCCC$).$ NS is a Subchapter S corporation. The company reported an ordinary business loss for the year of $($$$80,000).$ Donna received a K$-1$ from NS reporting her allocation of this business loss. Donna acquired the stock several years ago. Her basis and at$-$risk amount in the stock before considering her $2021$ loss allocation was $$12,000.$ Donna is a passive owner with respect to this entity.In May, Daniel was injured in a home accident. The injury prevented Daniel from working for about a month. During this time, Daniel received $$12,000$ in disability payments attributable to a disability insurance policy. The disability policy premiums were paid by Daniels employer as a nontaxable fringe benefit. The Colemans paid the following expenses during the year:Dentist $($unreimbursed by insurance$)$: $$1,500$Doctors $($unreimbursed by insurance$)$: $$2,425$Prescriptions $($unreimbursed by insurance$)$: $$675$Real property taxes on residence: $$7,525$Vehicle property tax based upon value: $$1,250$Mortgage interest on principal residence $($$$600,000$ acquisition indebtedness$)$: $$12,550$Margin interest paid on brokerage account loan: $$600$Fee paid to Mouser, Johnson, and Hintze CPAs for tax preparation: $$1,200$Contribution to United Way: $$2,000$Contribution to American Cancer Society: $$5,000$The Colemans also donated clothing, electronics, furniture and other household goods to the Salvation Army of Plymouth, Maine on April $15,2021.$ The Colemans estimated that their cost of donated items was $$5,000.$ Estimated thrift value of the goods donated was $$275.$