Using the informationbelow, complete the tax form 1040 above. Brian and Sheila Williams were married in October of 2008. Theylive at 1000 Main Street, Atlanta, GA 33127. Brian is a postalservice worker. Sheila is a teacher at Grady High School. Brian’ssocial security number is 555-11-1111 and Sheila’s social securitynumber is 555-22-2222. They have a dependent daughter Jayla who is10 years old (Born on May 12th). Jayla’s social security number is555-33-3333. In 2016, Brian's wages was $45,860 while Sheila's was$43,590. |
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| Included or ExcludedItems |
| Two years ago, the taxpayerloaned a friend $2000. The friend has filed for bankruptcy thisyear and will not be able to repay |
| Earned $100 interest oncounty municipal bonds |
| Found a diamond worth $1000on the ground |
| Received $500 in deathbenefits fron Brian's father |
| Received $4,000 courtsettlement. $1,000 was punitive damanges. |
| Brian paid $400/month inchild support |
| Received a $1000 gift fromhis brother |
| Sheila won $100 playingbingo |
| Brian paid $200/month inalimony to his ex-wife |
| Sheila received a $1000 giftfrom her mother |
| Sheila spent $300 on suppliesfor her classroom |
| PortfolioInvestments |
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| Stock | Acquired | Sold | Sales Price | Cost (Basis) | Qualified Dividends | | | | | |
| Red Stock | 2/1/2016 | 10/5/2016 | $6,000 | $2,500 | $0 | | | | | |
| White Stock | 6/11/2009 | 10/15/2016 | $5,000 | $4,000 | $100 | | | | | |
| Blue Stock | 10/1/2005 | 8/3/2016 | $2,000 | $10,000 | $0 | | | | | |
| Black Stock | 3/6/2016 | 12/15/2016 | $3,000 | $5,000 | $0 | | | | | |
| Yellow Stock | 4/5/2006 | N/A | N/A | $5,000 | $300 | | | | | |
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| Interest IncomeSource | Amount | | | | | | | | | |
| Money Market Account | $200 | | | | | | | | | |
| Savings Account | $25 | | | | | | | | | |
| State Municipal Bonds | $35 | | | | | | | | | |
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| Rental Property |
| They own and renttwo pieces of residential real estate in Miami, FL. Theseproperties were acquired with cash (so there are no mortgages onthe homes). They both have real estate broker licenses in Georgiaand Florida. They dedicate enough hours (through their business) toqualify as a “real estate professional” with regard to theseproperties. |
| Property 1 |
| The firstproperty is located at 17750 NW 17th Ave, Miami, FL. They collect$1,000 monthly in rent. The property was purchased June 30, 2016for $150,000. The tax records show that the value of the land is$30,000 and the value of the home was $90,000 when purchased. Theyactively participate in the management of the real property. |
| The property hasthe following expenditures: |
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| Property tax | | $7,000/yr | | | | | | | | |
| Repairs | | $ 900/yr | | | | | | | | |
| Insurance | | $1,200/yr | | | | | | | | |
| Washing Machine | | $300 | | (purchased 6/2/2015) | | | | | |
| Refrigerator | | $700 | | (purchased 7/1/2016) | | | | | |
| Furniture | | $2,000 | | (purchased 4/1/2014) | | | | | |
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| Property 2 |
| The secondproperty is located at 5610 NW 11th Ave, Miami, FL. They collect$1,500 monthly in rent. The property was purchased on June 12, 2016for $100,000. The tax records show that the value of the land is$20,000 and the value of the home was $80,000 when purchased. Theyactively participate in the management of the real property. |
| The property hasthe following expenditures: |
| Property tax | | $6,200/yr | | | | | | | | |
| Repairs | | $3,000/yr | | | | | | | | |
| Insurance | | $1,200/yr | | | | | | | | |
| Legal fees | | $ 500/yr | | | | | | | | |
| Advertising Expense | | $ 500/yr | | | | | | | | |
