ACC INDIVIDUAL TAX RETURN PROBLEM – Paige Turners
INDIVIDUAL TAX RETURN PROBLEMUse the next data to finish Paige Turners 2012 federal revenue tax return. If data is lacking, use affordable assumptions to fill within the gaps.Any required types, schedules, and directions will be discovered on the IRS Site (www.irs.gov).The directions will be useful in finishing the types.Information:1. Paige Turner is single and has two youngsters from her earlier marriage. Ali lives with Paige,and Paige gives greater than half of her assist. Leif lives along with his father; Will (Lief lived withWill for all of 2012). Will gives greater than half of Leifs assist. Paige pays alimony of$400 monthly to Will. The funds are to proceed till Leif reaches age 18, once they willbe diminished to $150. Paige gives you with the next further data:She makes use of the money technique of accounting and a calendar 12 months for reporting.She needs to contribute to the presidential election marketing campaign.Paige lives at 523 Essex Road, Bangor, ME 04401.Paiges birthday is Could 31, 1974.Alis birthday is October 5, 2003.Leifs birthday is December 1, 2001.Paiges Social Safety quantity is 007-16-4727.Alis Social Safety quantity is 005-61-7232.Leifs Social Safety quantity is 004-23-3419.Wills Social Safety quantity is 006-45-6333.She doesn't have any international financial institution accounts or trusts.2. Paige is employed as a nuclear engineer with Atom Methods Consultants, Inc.(ASCI). ASCIs federal employer identification quantity is 79-1234466. Paigespay stubs point out that she had $7,230 withheld in federal taxes, $four,987 in statetaxes, $four,495 in Social Safety taxes, and $1,051 in Medicare taxes. ASCI hasan in depth fringe advantages program for its staff.three. Paige earned wage of $70,000 (earlier than subtracting her 401(ok) and flexiblespending plan contributions). She contributed $7,000 to her 401(ok) account, and shecontributed $three,600 to her versatile spending account.four. Profiting from ASCIs instructional help program, in the course of the fallPaige enrolled in two graduate engineering lessons at an area school. ASCI paidher tuition, charges, and different course-related prices of $2,300.5. Paige acquired free parking within the companys safety storage that might normallycost $200 monthly.6. On January 15, 2012, Paiges father died. From her fathers property, she receivedstock valued at $30,000 (his foundation was $12,000) and her fathers home valued at$90,000 (his foundation in the home was $55,000).7. Paige owns a number of different investments and in February 2013 acquired a press release from herbrokerage agency reporting the curiosity and dividends earned on the investments for 2012. (Seepage three.)eight. Along with the investments mentioned above, Paige owns 1,000 shares of Grubstake Mining& Improvement frequent inventory. Grubstake is organized as an S company and has 100,000shares excellent (S corp. ID quantity 45-4567890). Grubstake reported taxable revenue of$200,000 and paid a distribution of $1.00 per share in the course of the present 12 months. Paige tells you thatGrubstake usually doesn't ship out its Okay-1 studies till late April. Nevertheless, its preliminaryreport has been per the Okay- 1 for a few years. (See web page three.) Paige doesn't materiallyparticipate in Grubstakes actions.9. Paige slipped on a moist spot in entrance of a pc retailer final July. She broke her ankle and wasunable to work for 2 weeks. She incurred $1,300 in medical prices, all of which have been paid bythe proprietor of the shop. The shop additionally gave her $1,000 for ache and struggling ensuing from theinjury. ASCI continued to pay her wage in the course of the two weeks she missed due to theaccident. ASCIs plan additionally paid her $1,200 in incapacity pay for the time she was unable to work.Below this plan ASCI pays the premiums for the incapacity insurance coverage as a taxable fringe profit.Varieties 1099 and 1098That is necessary tax data and is being furnished to the Inner Income Service.1099-Div Dividends & DistributionsEntityDescriptionAmountGeneral DynamicsGross strange & certified dividends$3001099-Int InterestEntityDescriptionAmountNew Jersey Financial Improvement bonds Gross curiosity$300IBM bondsGross curiosity700State of Nebraska bondsGross curiosity2001098-Mortgage Curiosity StatementEntityDescriptionAmountSunbelt Credit score UnionMortgage curiosity$7,100Northeast BankHome-equity mortgage curiosity435Grubstake Mining & Improvement: preliminary report (preliminary Okay-1) to Paige for the 2012tax yearDistribution to shareholder$1,000Peculiar revenue (1% of $200,000)$2,00010. Paige acquired a Type 1099-B from her dealer for the sale of the next securities throughout2012. The adjusted foundation quantities have been reported to the IRS.Sale DatePurchase DateSales PriceHerBasisNebraska state bonds03/14/1210/22/06$2,300$1,890$eight,500$9,760Cassill Corp (500 shares)10/20/1202/19/1111. Along with the taxes withheld from her wage, she additionally made well timed estimated federal taxpayments of $175 per quarter. Paige wish to obtain a refund for any overpayment.12. Paige discovered a renter for her fathers home on February 1, 2012. The month-to-month hire is $400,and the lease settlement is for one 12 months. The lease requires the tenant to pay the primary and lastmonths hire and a $400 safety deposit. The safety deposit is to be returned on the finish of thelease if the property is in good situation. On February 1 2012, Paige acquired $1,200 from thetenant per the phrases of the lease settlement. In November, the plumbing froze and a number of other pipesburst. The tenant had the repairs made and paid the $300 invoice. In December, he diminished his rentalpayment to $100 to compensate for the plumbing repairs. Paige gives you with the followingadditional data for the rental in 2012.Property taxes$770Different upkeep bills285Insurance coverage expense495Administration price350Depreciation2,760The rental property is situated at 35 Harvest Road, Orono, ME 04473. Native observe is toallocate 12 % of the honest market worth of the property to the land. (See #6.) Paige makes alldecisions with respect to the property.13. Paige paid $2,zero50 in actual property taxes on her principal residence. The actual property tax is used topay for city faculties and different municipal companies.14. Paige drives a 2011 Acura TL. Her automotive registration price (primarily based on the automotive 12 months) is $50 andcovers the interval 1/1/12 by way of 12/31/12. As well as, she paid $280 in property tax to the statebased on the e book worth of the automotive.15. Along with the medical prices offered in #9, Paige incurred the next unreimbursedmedical prices:Dentist$ 310Physician390Pharmaceuticals215Over-the-counter medication140Optometrist125Emergency room prices440LASIK eye surgeryChiropractor2,00026516. On March 1, Paige took benefit of low rates of interest and refinanced her $75,000 homemortgage together with her unique lender. The brand new house mortgage is for 15 years. She paid $215 in closingcosts and $1,500 in low cost factors (pay as you go curiosity) to acquire the mortgage. The home is price$155,000, and Paiges foundation in the home is $90,000. As a part of the refinancing association, shealso obtained a $10,000 home-equity mortgage. She used the proceeds from the home-equity mortgage toreduce the stability due on her bank cards. Paige acquired a number of Type 1098 statements fromher financial institution for curiosity paid by her in 2012. Particulars seem under. (See additionally on web page three.)Major house mortgage$7,100Dwelling-equity mortgage435Bank cards498Automobile mortgage39017. On Could 14, 2012, Paige contributed clothes to the Salvation Military. The unique value of theclothing was $740. She has substantiation valuing the donation at $360. The Salvation Military islocated at 350 Stone Ridge Street, Bangor, ME 04401. As well as, she made the next cashcontributions and acquired a press release from every of the next organizations acknowledgingher contribution:Larkin School$850United Means125First Methodist Church790Amos Home (homeless shelter)200Native Chamber of Commerce10018. On April 1, 2012, Paiges home was robbed. She apparently interrupted the burglar becauseall thats lacking is an vintage brooch she inherited from her grandmother (June 12, 2004) and$300 in money. Sadly, she didnt have a separate rider on her insurance coverage coverage protecting thejewelry. Subsequently, the insurance coverage firm reimbursed her solely $500 for the brooch. Her foundation inthe brooch was $6,000, and its honest market worth was $7,500. Her insurance coverage coverage additionally limits to$100 the amount of money that may be claimed in a theft.19. Throughout 2012, Paige paid an area CPA $350 to arrange her 2011 tax return.