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Without Critical Thinking Questions this week, this is your opportunity (and a requirement) to …

by Essaynice Tutors | Sep 9, 2023 | accounting

Without Critical Thinking Assignments this week, this is your
opportunity (and a requirement) to work on your Portfolio Project.
Obtain the supporting information from your Portfolio Project
option. You will also use the Schedule A template included under
that same option. Show all calculations within the cells of the
template. This means that you must use formulas and links so that
the thought process can be examined. Make good use of comments to
convey your thought process as well; no hard coding of solutions.
Submit a single MS Excel file for grading.

ACT405 – Portfolio Project Case 1

Comprehensive Tax Problem – Option 1

Taxpayer Information

Name: John Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 5/5/1960

Filing Status: Married

SSN: 434-20-2020

Occupation: Engineer

Name: Debra Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 7/7/1962

Filing Status: Married

SSN: 411-21-4568

Occupation: Teacher

INCOME INFORMATION:

Wages and Compensation

The following information is taken
from John Washington’s 2017 Form W-2 Wage and Tax Statement:

Box 1 – Wages, tips, and other compensation	80,000
Box 2 – Federal Withholding	12,500
Box 17 – State Income Tax Withholding	2,000

The following information is taken
from Debra Washington’s 2017 Form W-2 Wage and Tax Statement:

Box 1 – Wages, tips, and other compensation	42,000
Box 2 – Federal Withholding	3,500
Box 17 – State Income Tax Withholding	750

Interest and Dividends

John had interest income from a savings account from Everest Bank
of $500.00

Debra had dividend income of $550 from Blue Co. stock.

Capital Gains

John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $
12,000 on June 7, 2017, which he purchased on April 1, 2017 for
25,000

Rental Real Estate

The couple owns a rent house which he
purchased on July 1, 2014. The income and expenses of the rental
real estate unit are as follows:

Rental
income
$12,000

Property taxes


$1,500

Depreciation

$1,000

Repairs and
Maintenance
$750

Insurance
$2,000

Other Transactions in 2017

1. Debra had educator expenses in 2017
of $450.00

2. John had gambling winnings of
$1,000.

3. John was the beneficiary of his
mother’s life insurance policy.

His mother died in 2017 and he
received $50,000 under this policy.

4. Debra paid $700 in student loan interest.


SCHEDULE A											OMB No. 1545-0074
(Form 1040)		Itemized Deductions										2016
Department of the Treasury Internal Revenue Service (99)	▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea										Attachment
			▶ Attach to Form 1040.								Sequence No. 07

Name(s) shown on Form1040										Your social security number

Medical and Dental Expenses		Caution. Do not include expenses reimbursed or paid by others.
	1	Medical and dental expenses (see instructions)…..					1
	2	Enter amount from Form 1040, line 38		2
	3	Multiply line 2 by 10% (.10). But if either you or your spouse was
		born before January 2, 1949, multiply line 2 by 7.5% (.075) instead					3
	4	Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. . . . . . . .								4
Taxes You Paid	5	State and local (check only one box):
		a □ Income tax or		}	. . . . .	. .
		b □ General sales tax		}			5
	6	Real estate taxes (see instructions) . . . . . . . . .					6
	7	Personal Property taxes.	. . . . . . . . . . .				7
	8	Other taxes. List type and amount >		.
							8
	9	Add lines 5 through 8								9
Interest You Paid Note. Your mortgage interest deduction may be limited (see instructions).	10	Home mortgage interest and points reported to you on Form 1098					10
	11	Home mortgage interest not reported to you on Form 1098. If paid
		to the person from whom you bought the home, see instructions
		and show that person’s name, identifying no., and address ▶

							11
	12	Points not reported to you on Form 1098. See instructions for
		special rules . . . . . . . . . . . . . . . . . . . .					12
	13	Mortgage insurance premiums (see instructions) . . . . .					13
	14	Investment interest. Attach Form 4952 if required. (See instructions.)					14
	15	Add lines 10 through 14. . . . . . . . . . . . . . . . . . . . . . . . . .								15
Gifts to	16	Gifts by cash or check. If you made any gift of $250 or more,
Charity		see instructions. . . . . . . . . . . . . . . .					16
if you made a	17	Other than by cash or check. If any gift of $250 or more, see
gift and got a		instructions. You must attach Form 8283 if over $500 . . .					17
benefits for it .,	18	Carryover from prior year . . . . . . . . . . . .					18
see instructions	19	Add lines 16 through 18. . . . . . . . . . . . . . . . . . . . . . .								19
Casualty and Theft Losses	20	Casualty or theft loss(es). Attach Form 4684. (See instructions.) .					. . . . . . .			20
Job Expenses and Certain Miscellaneous Deductions
	21	Unreimbursed employee expenses—job travel, union dues,					21
		ob education, etc. Attach Form 2106 or 2106-EZ if required.					22
		(see instructions) ▶
	22	Tax preparation fees . . . . . . . . . . . . .
	23	Other expenses—investment, safe deposit box, etc. List type
		and amount ▶					23
							24
	24	Add lines 21 through 23 . . . . . . . . . . . .
	25	Enter amount from Form 1040, line 38		25
	26	Multiply line 25 by 2% (.02). . . . . . . . . . . . . . . .					26
	27	Subtract line 26 from line 24. If line 26 is more than line 24, enter -0-. . . . . .								27
Other Miscellaneous Deductions	28	Other—from list in instructions. List type and amount ▶

										28
Total Itemized Deductions	29	Is Form 1040, line 38, over $150,000?
		□ No. Your deduction is not limited. Add the amounts in the far right column						}
		for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
		□ Yes. Your deduction may be limited. See the Itemized Deductions							. .	29
		Worksheet in the instructions to figure the amount to enter.
	30	If you elect to itemize deductions even though they are less than your standard
		deduction, check here . . . . . . . . . . . . . . . .						▶	□
For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C										Schedule A (Form 1040) 2016