TAX RETURN PROBLEM

TAX CALCULATION PROBLEM.

Dave and Mary (Your last name) are married with 3 children, ages 17, 11, and 8. Mary is a senior vice-president for a security firm and Thomas is a one owner of an LLC d/b/a Daves Used Car Emporium. Thomas inherited $800,000 from his grandfather in 2013. He spends 10 hours a week managing the rental property they purchased with part of the inheritance and the family's stock portfolio.

Mary's salary $125,000 (Federal Income Tax withheld 13,400, State Income Tax withheld 4,850)
Interest on GMAC Bonds 800

Interest on City of New Orleans Bonds 1,300

Interest on FNB savings account 600

Berlinco, Inc. (a foreign corporation) (nonqualified dividend) 100

Nebraska General Revenue Bonds 350 . Thomas and Mary received a Form 1099-B from their broker for the sale of the following securities during 2015: Date Sale Purchase Sale Price Nebraska Bonds 03/14/18 10/22/11 $10,000 $ 80 $1,710 Cassill Corporation Stock 10/18/18 02/19/18 $8,900 $450 $9,630 They had purchased the Bonds for 10,500 and the shares of Cassill Corporation stock at a cost of $7,800. On June 15, 2018 they received 50 shares of General Dynamics' stock as a stock dividend. The fair market value of the General Dynamics stock on June 15, 2018, was $33.50 per share.
Rental Income	35,000
Rental Expenses Insurance 1,548 Repairs and Maintenance 7,878 Mortgage Interest 8,586 Property Taxes 3,890 Depreciation Expense 12,878
Dave and Mary also paid $25,000 in Estimated Federal Taxes and $5,000 in Estimated State Income Taxes. Itemized deductions:

Unreimbursed medical expenses:

Medical insurance premiums $ 6,205

Prescription drugs 250

Dentist 1,950

Emergency room fee 1,875

Cold pills, aspirin, other over-the-counter medicine 120

Rental fee for crutches 80

Real estate taxes $ 5,600

Ad valorem tax paid on tags 785

State income tax paid in 2018 for 2017 tax return 250

Home mortgage interest 14,800

Home equity interest (Pre 2017) 500

Charitable contributions - cash 6,350

Charitable contributions - clothes (Original Cost 1,000, FMV $300)

Tax preparation fee for 2017 return, paid in 2018 300

Unreimbursed business expenses 888

Compute the adjusted gross income, taxable income, and tax liability using actual IRS tax forms for 2018.

Ignore any credits. I am expecting the following forms to be completed: 1040 (thru line 78) , Schedules A, B, C, D, E, and SE.INCOME INFORMATION FROM DaveS USED CAR EMPORIUM LLC:

EIN 64-8545820

GROSS SALES (RECEIPTS) 784,520

PURCHASES OF INVENTORY FOR RESALE 567,856

Beginning Inventory 1/01/18 210,585

Ending Inventory 12/31/2018 215,580

SALARIES PAID 65,000

OFFICE EXPENSE 14,000

ADVERTISING 21,250

PAYROLL TAXES 5,200

Depreciation Expense 8,253

SALES TAXES PAID 31,250

REPAIRS ON VEHICLES 24,520

UTILTIES 12,521

TELEPHONE 2,542

MORTGAGE INTEREST EXPENSE on Buidling 9,125