Summary of Problem 2 Data

West Federal Taxation 2008: Comprehensive Volume (with RIA Checkpoint Online Database Access Card, Turbo Tax Business CD-ROM, and Turbo Tax Basic)

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Misc Information SSN and Birthdays for people in tax return Austin B Wilson 429-39-4678 12/06/1965 Carla T Wilson 429-68-2147 03/10/1966 Becky Turner 429-15-8961 06/15/1940 William Wilson 431-92-1684 02/18/1989 Stefanie Wilson 431-41-3587 05/03/1991 Derek Wilson 431-71-4896 10/19/1992 Becky was 66 and blind at the time of death. Carla is the executor of the estate and sole heir. Austin's Address: 4320 Mockingbird Drive, Little Rock, AR 72201 Becky's Address: 6240 Pine Road, North Little Rock, AR 72114 Most of Austin's travel expenses are reimbursed. Principle Business Codes: 812190 Carla, 541990 Austin No prior phone records OR presidental contribution Preparing own return Refund should be sent to their house half year convention for personalty to be depreciated maximum depreciation allowed for rental property Family car: Chevy purchased sept01, for purchased aug05 Automatic mileage method for cars Item Amount Reference/Notes Austin's Annual Salary $39,800 Includes reimbursements for "travel expenses" Carla's Annual Salary $45,000 41,000 salary plus 4,000 bonus $84,800 Line 7 on Form 1040 Becky's Death and Inherentence Related Issues Becky's Medical Expenses $4,000 Included in normal medical expenses Becky's Funeral Expenses $7,900 Not deductible Appraisal Expense $900 Because there is no associated gain, there is no deduction for this Inherited Land Value $18,000 No taxable gain reported Inherited House Value $150,000 No taxable gain reported Inherited Finishings Value $14,000 No taxable gain reported Inherited House Repairs $1,850 Included as repair expense on Schd E Line 14 Advertising Rent of Inherited House $890 Included as advertising expense on Schd E Line 5 Income from House Rental (June06-Jan07) $18,400 Included as Rents Received on Schd E Line 3 Damage Deposit on house $1,200 Included as Rents Received on Schd E Line 3 Becky's Life Insurance Policy Proceeds $70,000 Life insurance proceeds are exempt from tax. § 101(a) Interest on Life Insurance Proceeds $900 Included as interest income Austin's Business Related Expenses Airfare $4,900 Qualifies as travel expense, previously reimbursed so there is no deduction Lodging $2,200 Legitimate Business Expense Meals $2,860 50% included on line 5 of form 2106 EZ Entertainment $1,900 Legitimate Business Expense Travel in family car for business (in miles) 14,900 Qualifies as travel expense, previously reimbursed so there is no deduction parking on above trips $320 Qualifies as travel expense, previously reimbursed so there is no deduction 15 Gift Baskets for attorneys ($24 +$4 s/h) $420 Limited to 25$/per person for a total deduction of $375 Expense's related to Carla Unremimbursed School Supplies (60% of 2600)
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Summary of Problem 2 Data - Misc Information SSN and...

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