Complete tax return problem | Accounting homework help

 

Required:

  • Use the following information to complete Phillip and Claire Dunphy’s 2012 federal income tax return. If information is missing, use inexpensive assumptions to fill throughout the gaps. Ignore the selection minimal tax for this downside.
  • Any required varieties, schedules, and instructions is perhaps found on the IRS Web site on-line (www.irs.gov). The instructions is perhaps helpful in ending the varieties.  The subsequent varieties are required:

o   1040

o   Schedule C

o   Schedule D

o   Kind 4562

o   Kind 4797

o   Kind 8949

o   Schedule SE

·       AMT (numerous minimal tax) is NOT  part of this Enterprise; You do NOT should calculate AMT!!!

·       Moreover, you do NOT must depreciate the Artwork work

Info:

  1. Phillip and Claire are married and file a joint return. Phillip is self-employed as an precise property agent, and Claire is a flight attendant. Phillip and Claire have three dependent kids. All three kids reside at dwelling with Phillip and Claire for the whole 12 months.

The Dunphys give you the following additional information:

    • The Dunphys needn’t contribute to the presidential election advertising marketing campaign.
      • The Dunphys reside at 3701 Brighton Avenue, Los Angeles, CA  90018.
        • Phillip’s birthday is 11/5/1965 and his Social Security amount is 321-44-5766.
          • Claire’s birthday is 5/12/1968 and her Social Security amount is 567-77-1258.
            • Haley’s birthday is 11/6/1999 and his Social Security amount is 621-18-7592.
              • Alex’s birthday is 2/1/2001 and her Social Security amount is 621-92-8751.
                • Luke’s birthday is 12/12/2005 and his Social Security amount is 621-99-9926.
                  • The Dunphys have no worldwide monetary establishment accounts or trusts.
                1. Claire is a flight attendant for Western American Airways (WAA), the place she earned $57,000 in wage. WAA withheld federal income tax of $6,375, state income tax of $1,800, Los Angeles metropolis income tax of $675, Social Security tax of $three,600, and Medicare tax of $825.
                2. Phillip and Claire obtained $300 of curiosity from State Monetary financial savings Monetary establishment on a joint account. Moreover they obtained an expert dividend of $395 on collectively owned stock in Xila Firm.
                3. Phillip’s precise property enterprise is known as “Phillip Dunphy Realty.” His enterprise is located at 645 Grove Avenue, Los Angeles, CA 90018, and his employer identification amount is 93-3488888. Phillip’s gross receipts all through the 12 months had been $730,000. Phillip makes use of the cash methodology of accounting for his enterprise. Phillip’s enterprise payments are as follows:
                4. Selling

                  $ 5,000

                  Expert dues

                  800

                  Expert journals

                  200

                  Employee wages

                  48,000

                  Insurance coverage protection on office contents

                  1,120

                  Accounting corporations

                  2,100

                  Miscellaneous office expense

                  500

                  Utilities and cellphone

                  three,360

                  Payroll taxes

                  three,600

                  Depreciation

                  To be calculated

                  On March 20, Phillip moved his enterprise out of the outdated workplaces at 1103 Allium Lane proper right into a newly constructed and equipped office on Grove Avenue. Phillip provided the outdated office establishing and all its furnishings. Phillip’s expenditures for the model new office establishing are as follows:

                  Date Acquired

                  Asset

                  Worth

                   three/20

                  Land

                  $300,000

                   three/20

                  Office establishing

                  2,500,000

                   three/20

                  Furnishings

                  200,000

                  4/1

                  Computer system

                  350,000

                  6/1

                  Artwork work

                  150,000

                  Phillip computes his worth restoration allowance using MACRS. He need to use the §179 fast expensing, nonetheless he has elected to not declare any bonus depreciation. Phillip has certainly not claimed §179 or bonus depreciation sooner than. The property Phillip provided on March 20 are as follows:

                  Date Acquired

                  Asset

                  Product sales Price

                  Distinctive Worth

                  Accrued Depreciation as of Beginning of the Yr

                  5/1/05

                  Office establishing

                  $940,000

                  $900,000

                  $129,825

                  5/1/05

                  Land

                  200,000

                  100,000

                  zero

                  7/1/05

                  Furnishings

                  50,000

                  239,000

                  206,998

                  eight/13/07

                  Furnishings

                  10,000

                  324,000

                  222,782

                  4/12/08

                  Office gear

                  100,000

                  120,000

                  67,524

                  5/13/10

                  Laptop programs

                  $ 30,000

                  50,000

                  10,000

                  Phillip has certainly not provided any property concerning his enterprise sooner than this transaction.

                  1. The Dunphys provided 60 shares of Fizbo Firm widespread stock on September three, for $65 a share (minus a $50 complete price). The Dunphys purchased the stock on November eight, 2010, for $90 a share. Moreover they provided a painting for $13,000 on March 1. Claire purchased the painting for $20,zero50 on September 1, 2004, as an funding.
                  2. The Dunphys filed their 2011 federal, state, and native returns on April 14, 2012. They paid the following additional 2011 taxes with their returns: federal income taxes of $630, state income taxes of $250, and metropolis income taxes of $75.
                  3. The Dunphys made nicely timed estimated federal income tax funds of $16,000 each quarter all through 2012. Moreover they made estimated state income tax funds of $1,000 each quarter and estimated metropolis income tax funds of $300 each quarter. The Dunphys made all fourth-quarter funds on December 31, 2012. They need to get hold of a refund for any overpayments.