Final - 1T BUS 168A Final Exam Winter 2010 3 X 2 t Zfph 7 jrJc ZV 1 I Iff Answer Section tfd6 F 401 k 3 31 12 2o TRUEIFALSE 1 ANS 33 plans DlF NAT

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Unformatted text preview: 1T BUS 168A Final Exam Winter 2010 3 X 2 t Zfph 7 jrJc ZV 1 I Iff Answer Section tfd6 F 401 k 3 31 12 2o TRUEIFALSE 1 ANS 33 plans DlF NAT are l ftS 2Kft tax Earnings on 9 PTS OBJ MSC 2 ANS I 4 2 min F deferred until distributions are received IJ In REF p 9 26 1 Example 43 AICPA FN Measurement 1 AACSB Analytic I A suspended a loss The I 3 passive loss may be deducted when the activity is sold even if the sale suspended loss can offset Kelly s active income from her job DIF NAT 1 REF p 11 ofthe activity results in PTS 7Ip II 8 OBJ MSC 3 ANS The AICPA FN Measurement 1 AACSB Analytic 5 min T 25 000 offset generally phases case out at the rate AGI exceeds 100 000 Therefore once of 0 50 for each dollar by which a taxpayer s modified modified AGI reaches 150 000 the deduction is phased out not completely PTS NAT I In this the phase 1 out does apply p 11 22 DIF REF OBJ MSC 8 5 min AICPA FN Measurement 1 AACSB Analytic MULTIPLE CHOICE 4 ANS Jed is A a cash basis taxpayer and therefore has DlF I no basis in the 5 000 not collected PTS NAT 5 ANS I REF p 73 OBJ MSC I 5 min AICPA FN Measurement 1 AACSB Analytic D an This is a business bad debt and therefore the whole 12 000 was written off as collection of 5 000 represents 5 000 of income under the tax benefit rule ordinary loss The PTS OBJ MSC 6 ANS 1 I 5 min B DlF NAT 1 REF p 7 41 p 7 5 AICPA FN Measurement 1 AACSB Analytic The amount collected is 5 000 85 000 80 000 in excess of Lucy OBJ MSC s basis in the receivable PTS NAT I DIF I REF p 73 1 5 min AICPA FN Measurement 1 AACSB Analytic ID A 7 ANS C Income should be gains PTS NAT 8 ANS and 1 3 000 reported based on the tax offsets ordinary income DIF 2 benefit rule The tax benefit was 8 000 5 000 offsets capital REF p 75 OBJ MSC 1 AICPA FN Measurement 1 AACSB Analytic 10min B 90 000 50 000 30 000 Salary S 1244 ordinary loss Long term capital gain Long term capital loss Excess S 1244 loss Worthless Net 75 000 50 000 25 000 7 000 32 000 2 000 38 000 long Adjusted PTS OBJ MSC 1 2 term security capital loss limited to 3 000 gross income DIF NAT REF p 7 61 p 7 7 AICPA FN Measurement I AACSB 2 Analytic 10 min C are 9 ANS Independent contractors also subject to the cutback amount the deduction does not offset the increased b Because all work related expenses are c Work related expenses will have to be adjustment choice a The tax benefit provided by that must be paid under the self employment tax choice deductions for AGI the 2 of AGl reduction is avoided choice on Schedule C choice d reported REF p9 PTS OBJ MSC 10 ANS 1 1 DIF 1 AICPA FN 31 p9 III NA T Reporting 1 AACSB 191 p 9 Analytic 37 2 min A The self employment tax is twice the Social unreimbursed Security equivalent imposed choice b employee expenses are deductions from AGI adjustment choice PTS OBJ MSC 11 ANS c choice d Unreimbursed entertainment expenses will employees choice a Most subject to the 2 of AGl be subject to the cutback adjustment on and will be 1 1 DIF 1 AICP A FN III NAT p 9 31 p 9 191 p 9 37 Reporting 1 AACSB Analytic REF 2 min B a c Choices PTS OBJ MSC 12 ANS 1 2 and d would be allowed under the actual expense method DIF NAT 1 REF p 9 61 p 9 7 AICP A FN Measurement I AACSB Analytic 2 min A Fines and penalties are not deductible choice 1 a PTS NAT 1 DIF REF p 97 OBJ MSC 2 2 min AICP A FN Measurement I AACSB Analytic 2 ID A 13 ANS C The distance In this comparison jobs regard is between the old residence to the old job and old residence to new job choice c the location ofthe new residence is immaterial choices b and d as is the distance between choice a the old and PTS NAT 14 ANS 1 new DIF I AACSB REF Example 24 OBJ MSC 4 2 min AICPA FN B Reporting 1 Analytic Section 222 allows up to 4 000 for qualified tuition and related expenses As Carolyn spent is the amount she can claim as a deductionfor AGI The remaining expenses of 700 300 can be claimed as deductions from AGI PTS OBJ MSC 15 ANS 50 1 5 10 min C 50 x only 200 3 900 this 200 DIF NAT 2 REF AICPA FN Measurement 1 Example 281 Table 9 AACSB Analytic I 120 420 100 0 11 REF 30 OBJ MSC 6 5 min PTS NAT 16 ANS 1 DIF 1 AICPA FN Measurement 1 AACSB Example Analytic are A all Being self employed job related expenses an unless reimbursed pursuant to PTS OBJ MSC 17 ANS I DIF NAT deductionsfor AGI choice a All employee expenses adequate accounting are subject to the 2 of AGI floor choices b and c 7110 5 min C 1 REF p 9 3 1 p 9 37 AICPA FN Measurement 1 AACSB Analytic Cosmetic surgery is necessary and therefore deductible when it ameliorates 1 a deformity arising from a congenital abnormality 2 a personal injury or 3 a disfiguring disease The 9 000 cost incurred in connection with the restorative surgery required as a result of the accident is deductible because the surgery necessary Amounts paid for the unnecessary cosmetic surgery deductible as a medical expense was 6 000 for reshaping the chin are not PTS OBJ MSC 18 ANS 1 2 5 min C DIF NAT 1 REF AICPA FN Measurement Example 2 I Example 3 1 AACSB Analytic Brad is a cash basis taxpayer His deduction is limited to the amounts paid in 2009 The 800 refund is income in 2010 under the tax benefit rule Brad s state income tax deduction for 2009 is determined as follows reported as Paid April 14 Withholdings 2009 for 2008 for 2009 600 3 550 Total deduction PTS NAT 1 DIF I REF p l0 14 OBJ MSC 4 5 min AICPA FN Measurement 1 AACSB Analytic 3 ID A 19 ANS A Interest is deductible only on the portion of a home equity loan that does not exceed the lesser of The fair market value of the residence reduced 200 000 FMV 125 000 by the acquisition 75 000 indebtedness acquisition indebtedness 100 000 50 000 for married persons filing separate returns On a joint return Rick and Carol can deduct all ofthe interest on the first mortgage since it is acquisition indebtedness Of the 110 000 home equity loan interest on 75 000 is deductible as home equity interest PTS NAT 20 ANS 1 DIF 1 AICPA FN Measurement I AACSB Example Analytic REF 23 OBJ MSC 5 5 min B If ordinary income fair market value of the property is contributed to a qualified charitable organization the deduction is equal to the property less the amount of ordinary income that would have been reported if the not adjusted basis of the property to the long term capital gain requirement i e not more than one year a short term capital gain of 3 300 ifhe had sold the Since short term capital gain property is treated as ordinary income property for charitable property contribution purposes Byron s charitable contribution deduction is limited to the property s adjusted basis of were property donor sold In most instances the deduction is limited to the Since he had held the property long enough Byron would have recognized to meet the 10 500 13 800 3 300 PTS NAT 21 ANS 1 DIF 1 AICP A FN Measurement I AACSB Example 29 Analytic loss REF OBJ MSC 6 5 min E a Statements b c and d are true The passive provisions do not apply because Arnold is a material participant PTS OBJ MSC 22 ANS Stan s 1 DIF NAT 2 REF 11213 5 min D AGI after AICPA FN Measurement Example 41 Example 5 and I AACSB Analytic related discussion income He is not allowed to offset the 1 DIF considering the passive investment is 105 passive loss against 1 000 active 80 000 active income or 25 000 portfolio portfolio 3 5 min income PTS NAT 23 ANS Lew 140 a s AICP A FN Measurement I AACSB Example Analytic REF 6 OBJ MSC B in 150 significant participation activities A B C and D exceeds 500 hours 120 Therefore Lew is a material participant with respect to those activities E is Activity significant participation activity because Lew did not participate for more than 100 hours participation 520 110 not PTS OBJ MSC 1 5 5 min DIF NAT 2 REF AICPA FN Measurement Example 25 I Example I AACSB Analytic 26 and related discussion 4 ill A 24 ANS D a In 2008 Art had 80 000 loss 20 000 of which was suspended under the at risk rules 60 000 s was suspended under the a passive loss rules The as a 20 000 of passive income in 2009 increases Art at risk amount and allows for reclassification Therefore Art has total loss of 60 000 20 000 reclassified in 2009 PTS OBJ MSC 25 ANS 1 7 5 min D passive loss 20 000 of the 2008 loss suspended under the at risk rules 20 000 suspended under the passive loss rules 60 000 in 2008 of passive losses offset against passive income REF DIF NAT 2 AICPA FN Measurement Example 36 1 Example I AACSB Analytic 39 The entire loss may be deducted 10 000 of the loss is deducted against partnership remaining actively participates in the activity PTS I 8 5 min C DIF NAT 2 and the 17 000 rental real estate loss is deducted passive income from the limited against Pablo s salary because he the OBJ MSC 26 ANS REF p 11 221 p 11 23 FN Measurement I AACSB Analytic AICPA The maximum child tax credit is reduced for 1 000 per dependent child under age 17 The maximum credit must be or higher 1 000 part thereof 110 000 taxpayers For married taxpayers the credit reduction is 50 for every 1 000 of AGI above the threshold amount 110 000 resulting in a reduction of 250 114 300 rounded to 5 x income 50 for Caleb and Zoe Therefore the child tax credit is 1 750 2 000 maximum credit 250 reduction PTS OBJ MSC 27 ANS 720 1 4 5 min A 24 x DIF NAT 1 REF p 12 AICPA FN Measurement I 191 p 12 201 Example 28 AACSB Analytic 3 000 Kevin and Sue have only one qualifying dependent 3 000 ie the 8 year old therefore only up to 3 000 of expenditures income ceiling of 18 000 1 4 5 min C DIF NAT qualify for the credit The statutory ceiling is less than the earned PTS OBJ MSC 28 ANS I REF p 12 201 p 12 21 AICPA FN Measurement 1 AACSB Analytic The American credit is Opportunity 2 000 of qualifying plus 2 000 2 000 25 Arethia s American expenses Opportunity credit is also 2 500 100 of the first 2 000 of qualifying expenses 25 of the next 2 000 of qualifying expenses 2 000 2 000 plus 25 As Jermaine and Kesha s AGI is no more than 160 000 no is required Therefore the total phaseout American Opportunity credit is 5 000 s Opportunity 100 credit is available to both Devona and Arethia 2 000 of qualifying expenses 25 Devona American 2 500 of the first x of the next x PTS OBJ MSC I 4 10 min DIF NAT 2 REF p 12 221 p 12 231 Example 32 AICPA FN Measurement I AACSB Analytic 5 ID A 29 ANS E a None of the statements is true Choice is incorrect since the lifetime learning credit is available for individuals who are beyond the first two years of post d is computation learning opposite of choice c is correct Choice for the lifetime learning credit PTS OBJ MSC 30 ANS OBJ MSC I 4 5 min C 5 5 min PTS NAT I DIF NAT I ofthe lifetime credit not the American secondary education Choice b reflects the Opportunity scholarship credit The exact incorrect since some continuing education expenses can qualify REF p 2 221 p 2 23 AICPA FN Measurement I AACSB Analytic REF p 12 27 DIF 1 AICP A FN Measurement I AACSB Analytic 31 @d PTS OBJ MSC 32 ANS General discussion A cash basis 1 6 Omin DIF NAT 2 REF p9 9 AICPA FN Measurement I AACSB I Example 30 Analytic taxpayer deducts as 0 refund of state income taxes must be reported received a tax state income taxes in the year paid or withheld Any income in the year received to the extent the taxpayer taxes in a benefit from deducting the state a income whether the taxpayer receives cash refund or prior year The income must be reported has the refund applied against state income taxes payment in 2009 1 000 a 7 400 withheld in 2009 700 estimated tax paid in 2009 for 0 b The [email protected] benefit from benefit from UJQQ will be included in itemizing W in 2009 2010 gross income to the extent the taxpayer derived a tax c The 800 will be included in 20 0 gross income to the extent the iniln 2009 even if she elects to have the refund taxpayer derived a tax applied toward her 20 0 state income tax 800 refund as If d Wilma did not itemize deductions in 2009 she is not required to report any ofthe income in 2010 B t e CzJ PTS 08J MSC 1 4 10 min DIF NA T REF p 10 141 p 10 AICPA FN Measurement 1 AACSB 5 Analytic 6 Jk b Net sales price Less Adjusted basis Total gain Less Suspended losses Taxable gain passive 100 000 35 000 65 000 40 000 25 000 tJ z J zJ Example 7 100000 75 000 25 000 40 000 15 000 l 2 Net sales price Less Adjusted basis Total gain Less Suspended losses Deductible loss Example c 8 100 000 r 75 000 a 25 000 40 Ct 000 15 000 Net sales price Less Adjusted basis Total gain Less Suspended losses Deductible loss are The suspended passive losses forever because the sale ofthe fully deductible The suspended activity did not generate any tax credits are lost 1 040 label See instructions B Dn Department Dfthe Treasury Intemal Revenue Service U S Individual Income Tax Return 1 Dec 31 2009 Dr @Og 99 2009 IRS Use Onl FDr the year Jan YDur first L A name Dthertax year Last beginning ending YDur sDcial and initial name security number TOME If a LEEHAM spouse s first name page 14 E L joint return and initial Last name Spouse s social security number Use the label IRS HDme address number and street H E R E IfYDU have a P O bDx see page 14 ApI nD Otherwise You must enter please print Dr A City STREET tDwn Dr your SSN If you have a s above type post office state and ZIP cDde foreign address see page 14 Presidential Election Campaign RI VERS IDE Check here if you 1 2 X or CA your spouse if 92 3 to go to this fund 4 see 22 page 14 with a Checking a box below will not change your tax or refund You filing jointly want Spouse See page 15 Filing Check bDx Status one Single Married Married and full Head of household the qualifying person child but not your If filing jointly even if only one had income s qualifying person is s name dependent enter only 3 filing separately Enter spouse name SSN above 5 this child here er here can Qualifying widow with dependent child x see page 16 ed Exemptions 6a b C First X Yourself Souse If someone claim you as a dependent do not check box 6a d L ren Dependents name 2 Last name Dependent s number 3 Dependent s to you 4 chil J 50 1 nly page 17 lived with YDU did not live with you due to divorce Dr social security relationship for child tax see credit separatiDn page 18 If see more than four see dependents page check here 17 and De pe ndents on 5c nDt entered above D d Total number of exemptions claimed s Add numbers lines above on GJ 000 000 Income Attach Form W 2 here s 7 8a b 9a b 10 11 12 Wages salaries tips etc Attach Form Taxable interest Tax Attach Schedule B if W2 S T MJ 1 7 8a 380 15 1 required exempt interest Do not include on line 8a i I 3 MJ i 9a W i 2 Also attach Forms W 2G and 1 099 R if tax was Ordinary dividends Attach Schedule B if required Qualified dividends see 14 000 page 22 or i i see i page 23 14 000 10 11 Taxable refunds credits offsets of state and local income taxes withheld Alimony received or Business income loss Attach Schedule C or C EZ If not 12 If you did not get a W 2 seepage 22 13 14 15 16 17 a Capital gain Other or or loss losses Attach Schedule D if Attach Form 4797 required required check here 0 seepage seepage 13 14 3 000 2 gains IRA distributions Pensions and annuities Rental real estate or a 16a I S b Taxable amount b Taxable amount etc Attach 24 25 15b 16b 17 18 Enclose but do not attach any payment Also royalties partnerships corporations trusts Schedule E 18 19 20a 21 22 Farm income loss Attach Schedule F please use Form 1040 V Unemployment compensation Social security benefits List T excys 20a see of 2 400 per recipient see page 27 see 19 page 27 b Taxable amount page 29 This is your 20b 21 Other income type and amount Add the amounts in the far riqht column for lines 7 throuoh 21 Educator expenses see total income 22 406 000 Adjusted Gross Income 23 24 page 29 23 Certain business expenses of reservists fee basis officials Attach performing artists Form 2106 or and 24 25 26 27 28 25 26 27 28 29 30 31a 32 33 34 35 36 37 Health government savings account deduction Attach Form 8889 2106 EZ Moving expenses Attach Form 3903 One half of self Self Self employment tax Attach Schedule SE and employed employed on SEP SIMPLE health qualified plans deduction see insurance page 30 29 30 31a 32 Penalty early withdrawal of savings b Alimony paid IRA deduction Recipient page 31 s SSN see Student loan interest deduction Tuition and fees deduction Domestic see page 34 33 34 Form 8903 35 36 37 9A1210 1 000 Attach Form 8917 Attach production activities deduction Add lines 23 through 31a and 32 through 35 vour Subtract line 36 from line 22 This is adiusted gross income see 406 FDrm 000 2009 sol RS Disclosure Privacy Act and Paperwork Reduction Act Notice T page 97 1040 5136 9 N3 3 7 03 15 20 1 0 19 56 23 VO 9 4 4 PRACTI CE Form 1040 2009 TOME LEEHAM line 37 You Page 2 Tax and Credits Standard Deduction for 38 39a Amount from Check If b If your adjusted gross income born before 38 406 000 El are were January 2 1945 January 2 1945 a Spouse on a was born before El Blind Blind Total boxes checked 39 39b 40a spouse ItemIzes separate return or you were dual status allen see page 35 and check here see A who a Itemized deductions from Schedule A or your standard deduction left margin new 148 808 People check any box on line 39a 39b b If you taxes 41 42 increasing your standard deduction by certain real estate taxes see motor vehicle 40b or a net disaster loss attach Schedule L and check here page 35 D 41 or Subtract line 40a from line 38 257 SEE 192 2 40b or who can be claimed as a Exemptions If line 38 is 125 100 or less and you did not provide housing to see a Midwestern 42 43 STMT 2 254 66 displaced individual multiply 43 44 45 46 47 3 650 by the number on line 6d Otherwise If line 42 is Form s more page 37 0 433 759 693 NONE Z Z dependent seepage 35 Taxable income Subtract line 42 from line 41 Tax see than line 41 enter All others page 37 Check if any tax is from see aD 8814 b D Form 4972 44 45 46 Single or Alternative minimum tax Add lines 44 and 45 page 40 Attach Form 6251 Married filing separately 5 700 66 693 Foreign tax credit Attach Form 1116 if required Credit for child and 47 Married filing 48 49 50 51 dependent care expenses Attach Form 2441 48 49 50 51 jointly or Qualifying widow er Education credits from Form 8863 Retirement line 29 11 400 savings contributions credit Attach Form 8880 42 Child tax credit Credits from Form Head of household 8 350 52 53 54 55 Other credrts trom Form sege a 8396 3800 b b a B 8839 8801 B than line 46 5695 52 53 54 Add lines 47 through 53 These are your total credits line 46 If line 54 is more Subtract line 54 from Self enter 0 55 56 66 693 Other Taxes 56 57 58 59 60 employment tax Attach Schedule SE Unreported social security and Medicare tax from Form Additional tax on aD 4137 j taxes 19 57 58 59 60 I Additional taxes a RO other AEIC qualified retirement plans etc Attach Form 5329 if required payments b vour 0 Household employment Attach Schedule H Add lines 55 throuoh 59 This is total tax 61 2008 66 693 Payments 61 62 63 Federal income tax withheld from Forms W 2 and 1099 2009 estimated tax 195 000 NONE 2 payments and amount applied from return 62 63 64a Making work pay and government retiree credits Attach Schedule M EIC If you have a 64a Earned income credit qualifying child attach b Nontaxable combat pay election 65 66 67 68 69 70 71 Additional child tax f 64b f 65 66 67 see Schedule EIC credit Attach Form 8812 Form 8863 line 16 Refundable education credit from First time Amount homebuyer credit Attach Form 5405 page 72 paid with request for extension to file 68 69 BBBS Excess social Credits from Form Add lines 61 If line 71 is 62 securitL t a tier 1 RRTA 2439 b 0 taxwithhosee pageD 4136 C BB01 d 70 71 63 64a and 65 throuoh 70 These are vour total Davments 195 128 128 000 307 307 Refund Direct 72 more than line 60 ouwant subtract line 60 from line 71 This is the amount you overpaid 72 deposit 73aAmountofline72 b 8888isattached checkhere c See page 73 and fill in 73b 73c or 0 0 I I Savings 73a Routing number 1 1 Type 0 I Checking and 73d d Account number 74 75 76 Amount of line 72 you want Amount you owe 1 tt tt tt tt applied to your 2010 estimated tax For details on Form 8888 74 see Amount You Owe Third Subtract line 71 from line 60 see how to pay page 74 75 Estimated tax penalty page 74 1 see 76 I Party Designee Sign H ere Joint return See page 15 Do you want to allow another person to discuss this return with the IRS page 75 Phone LxJ Yes Complete the following UNo Your signature Date Your occupation Daytime phone number Keep a copy for your records spouse s signature II a JOint retum Dotn must sign Date I spouse s occupation Date Preparer s Paid signature Firm s name or you rs if self employed address and ZIP code Preparer s Use Only I N3 3 7 03 15 2010 19 56 23 VO 9 4 4 I Preparer s Check jf SSN or PTIN self employed I ErN Phone no 220 100 13 6 9 T PRACTICE Form 1040 2009 SCHEDULE A Form 1040 of the Itemized Deductions Attach to Form 1040 See Instructions for Schedule A Form 1040 nMB No 1545 0074 @O9 Treasury 99 t n n o Department Name Internal Revenue Service s 07 shown on Form 1040 Your social security number TOME LEEHAM Caution 1 2 3 4 5 Do not include expenses reimbursed see or Medical and Dental paid by others Medical and dental expenses Enter amount from 1040 line 38 Form page A 1 1 I line 1 2 075 I 3 more Expenses Taxes You Paid See page A 2 Multiply line 2 by 7 5 Subtract line 3 from State and local a If line 3 is one than line 1 enter 0 4 check only or box 5 Income taxes 92 000 2 b 6 7 General sales taxes see Real estate taxes page A 5 on 6 15 000 tL II 9 New motor vehicle taxes from line 11 of the worksheet back Skip this line if you checked box 5b type and amount 7 8 Other taxes List 9 9 Add lines 5 throuah Home Home 8 3 Form 1098 1 098 see 8 L 200 108 200 Interest You Paid See page A 6 10 11 mortgage mortgage interest and interest not from points reported reported to you on on 10 21 000 II to you Form If paid to the person whom you s name bought the home no page A 7 and show that person identifying and address Note Personal interest is not deductible 13 14 15 12 Points not for 11 reported to you on Form 1098 See page A 7 12 special rules mortgage insurance Qualified premiums see page A 7 See page A 8 13 14 15 Investment interest Attach Form 4952 if required Add lines 10 throuah 14 Gifts more 21 000 Gifts to 16 by cash see or check 8 or If you made any gift of 250 or Charity If you made a a page A S SrAr gift of M 250 Nr 500 3 16 22 000 Ih I 17 Other than see by cash check If any or more gift and got ben efit for it see page A 8 You must attach Form 8283 ifover 17 18 19 18 19 Carryover from prior year Add lines 16 page A 8 and through 18 22 000 Casualty Job Theft Losses 20 Casualty or theftloss employee es Attach Form 4684 job travel See page A 1 0 union dues 20 Expenses 21 Unreimbursed education 1 expenses or job and Certain Miscellaneous Deductions 22 See page A 10 etc Attach Form 2106 21 06 EZ if required See page 21 Tax preparation fees investment safe 22 deposit box etc List 23 Other expenses amount type and 23 24 25 26 27 Other Miscellaneous Deductions 28 29 Is Form 1040 line 38 over Add lines 21 Enter amount from Form 1040 line 38 through 23 24 1 25 02 i 26 If line 26 is List more Multiply line 25 by 2 Subtract line 26 from line 24 Other from list on than line 24 enter 0 27 28 page A 11 type and amount Total Item ized Deductions 166 800 over 400 83 if married filing separately right column for 29 D X 30 No Your deduction is not limited Add the amounts in the far lines 4 SEE STMT 148 4 808 through 28 Also enter this amount on Form 1040 line 40a amount Yes Your deduction may be limited to See page A 11 for the are to enter If you elect deduction itemize deductions even though they less than your standard check here Notice see D Form 1040 instructions Schedule A For JSA 9A1400 1 Paperwork Reduction 000 Act Form 1040 2009 51 36 9 T N3 37 03 15 2 0 10 19 56 23 VO 9 4 4 PRACTICE SCHEDULE 8 Form 1040A or OMS No 1545 0074 1040 Interest and Ordi nary Dividends Attach to Form 1 040A or Department Name s of the 1040 See instructions on back @Og Attachment Sequence No Your Treasury 99 on Internal Revenue Service shown 08 retum social security number TOME LEEHAM 1 List name of Part I Interest See instructions on payer If any as a interest is from a seller financed see mortgage and on the list Amount buyer used the property this interest personal residence instructions back and first Also show that buyer s social security number and address AMERICA 15 000 BANK OF oj back and the instructions for Form 1040A Form 1040 line 8a 1 Note If you a Form or received 1099 INT Form 1099 010 su or bstitute statement from a brokerage firm s list the firm name as the payer and enter the total interest shown form on that 2 3 Add the amounts Excludable on line 1 on 2 EE and 15 000 interest series I U S savings bonds issued after 1989 3 Attach Form 8815 4 Subtract line 3 from 1040 line 8a line 2 Enter the result here and on Form 1040A or Form 4 15 000 Note 5 If line 4 List is over 1 500 vou must complete Part III Am ount name Part II JOE of payer VULERO INC 14 000 l Ordinary Dividends See instructions on back and the instructions for Form 1040A Form 1040 line 9a 5 or Note If you received a Form 1 099 DIV su or bstitute statement from a brokerage firm list the firm name as s the payer and enter the ordinary dividends shown on that form 6 Add the amounts on line 5 Enter the total here and on Form 1040A or Form 6 1040 No te line 9a IS over 14 000 If r me 6 1 500 you mus comPlete P art III a Part III You must complete this part if you a had over 1 500 of taxable interest or ordinary dividends b had foreign account or c received a distribution from or were a grantor of or a transferor to a foreign trust 7a At Yes No Foreign Accounts and Trusts See instructions back For JSA on any time during 2009 did you have an interest in or a signature or other authority over a financial account in a foreign country such as a bank account securities account or other financial account 90 22 1 enter the 2009 name See instructions on back for exceptions and filing requirements for Form TD F X b 8 If Yes of the foreign country or During did you If Yes see receive foreign trust you may a distribution from or were you the grantor of have to file Form 3520 See instructions on back transferor to a X Form 1040A or 1040 2009 Paperwork Reduction Act Notice 000 Form 1040A or 1040 instructions Schedule B 9A 1600 1 51369T N337 03 15 2010 19 56 23 V09 4 4 PRACTICE SCHEDULE D Form 1040 Department Internal Name s ofthe Capital Gains Attach to Form 1040 or and Losses See Instructions for Schedule 0 Form 1040 Your social OMS No 1545 0074 Form 1040NR Treasury 99 @Og n o Revenue Service Use Schedule 0 1 to list additional transactions for lines 1 and 8 12 shown on return TOME LEEHAM Short Term Capital Gains and Losses b a I Assets Held One Year or Less c security number Date Date sold Description of property d see Sales price e Cost see or other basis Example 1 100 sh XYl Co acquired Mo day Mo yr day yr 0 7 of the instructions page page 0 7 of the instructions f Gain Subtract or e loss d from 2 Enter line 2 your short term totals if any from Schedule 0 1 2 3 Total short term column d sales price amounts Add lines 1 and 2 in 3 4 5 Short term Net gain from gain K1 Form 6252 or and short term gain or loss from Forms 4684 estates 6781 and and trusts 8824 from 4 short term s loss from partnerships amount S corporations any from Schedule 6 5 loss on Short term capital carryover Enter the if line 10 of your Capital Loss 6 Carryover 7 Worksheet page 0 7 of the instructions Net short term capital gain or loss Combine lines 1 through 6 in column f Long Term Capital Gains and Losses Assets Held More Than One Year d a 7 Sales Description of property XYZ Co b Example B 100 sh Date acquired Mo day yr c Date Mo sold day yr price e Cost or other basis see page 0 7 of the instructions see page 0 7 of the instructions f Gain or e loss from d Subtract 9 Enter line 9 your long term totals if any from Schedule 01 9 10 Total long from term sales price Part 6781 or amounts Add lines 8 and 9 in 10 column d 11 Gain Form 4797 I long term gain from Forms partne rships S 2439 and 6252 and long term gain or loss from Forms 4684 12 and 8824 loss from 11 30 000 Net long s term K1 gain corporations estates and trusts from 12 Schedule 13 14 Capital gain term distributions See page 0 2 of the instructions if 13 Long capital loss carryover Enter the amount Carryover Worksheet on page 0 7 of the instructions Net III on any from line 15 of your Capital Loss 14 38 000 15 I long term capital gain or loss Combine lines 8 through 14 in column t Then go to Part 15 the back Act Notice see 8 000 2009 For Paperwork Reduction Form 1040 or Form 1 040NR instructions Schedule D Form 1040 JSA 9A2011 1000 51 36 9 T N3 3 7 03 15 2010 19 56 23 VO 9 4 4 PRACTICE TOME Schedule LEEHAM D Form 1040 2009 Page 2 IIIII II 16 Summary Combine lines 7 and 15 and enter the result 16 8 000 If line 16 is A gain to enter the amount from line 16 on Form 1040 line 13 or Form 1040NR line 14 Then go A line 17 below loss Zero skip lines 17 through 20 below Then go skip lines 17 through 21 below and enter to 0 line 21 on Also be sure to complete line or 22 Form 1040 line 13 Form 1040NR line 14 Then go to line 22 17 Are lines 15 and 16 both gains D LJ 18 Yes No Go to line 18 Skip lines 18 through 21 and go to line 22 Enter the amount instructions if any from line 7 of the 28 Rate Gain Worksheet on page 0 8 of the 18 19 Enter the amount page 09 if any from of the instructions line 1 B of the Unrecaptured Section 1250 Gain Worksheet on 19 20 Are lines 1 Band 19 both zero or blank D D Yes or Form 1 040NR through line 40 Then complete the Qualified Dividends and Capital Gain Tax Worksheet on page 39 of the Instructions for Form 1040 or in the Instructions for Form 1040NR Do not complete lines 21 and 22 below Complete Form 1040 through line 43 No Complete Form 1040 through line 43 or Form 1 040NR through line 40 Then complete the Schedule 0 Tax Worksheet on page 0 10 of the instructions Do not complete lines 21 and 22 below 21 If line 16 is of The loss 3 000 a loss enter here and on Form 1040 line 13 or Form 1040NR line 14 the smaller on or line 16 or 21 3 000 if married filing separately 1 500 Note When figuring which amount is smaller treat both amounts on as positive numbers 22 00 you have qualified dividends X Yes line 9b or Form 1040NR line 10b line 43 or Form 1 040NR through line 40 Then complete the Qualified CapItal Gain Tax Worksheet on page 39 of the Instructions for Form 1040 or in the Instructions for Form 1040NR Form 1040 Complete throuQh Dividends and rest Form 1040 D No Complete the of Form 1040 or Form 1040NR Schedule 0 Form 1040 2009 JSA 9A2020 1 000 51 36 9 T N3 3 7 03 15 20 1 0 19 56 23 VO 9 4 4 PRACTICE TOME LEEHAM Qualified Dividends and Before you begin J Capital Gain Tax Worksheet Line 44 on Keep for 37 to see Your Records See the instructions for line 44 that begin page if you can use this worksheet to figure your tax J If you do not have to file Schedule 0 and you received capital gain distributions you checked the box on line 13 of Form 1040 line 43 However if you are be sure 1 Enter the amount from 2555 or Form 1040 filing Form 2555 EZ relating to foreign earned income on enter the amount from 1 line 3 of the worksheet 2 3 Enter the amount from Are you page 38 line 9b 2 254 759 Form 1040 14 000 filing Schedule D Enter the smaller of line 15 Schedule D loss enter 0 or or X o 4 5 Yes 16 of line 16 is a If either line 15 3 No Enter the amount from Form 1040 line 13 4 Add lines 2 and 3 If you are 14 000 claiming investment interest expense on Form line 4952 enter the amount from Otherwise enter 0 6 7 8 4g of that form 5 Subtract line 5 from line 4 If zero Subtract line 6 from line 1 Enter the smaller of The amount on or less enter 0 6 7 14 240 000 759 If zero or less enter 0 line 1 or or 33 950 if single married filing separately or 8 er 33 950 67 900 if married filing jointly qualifying widow 45 500 if head of household 9 Is the amount on line 7 equal to or more than the amount on line 8 X o 10 11 Yes No Skip lines 9 and 10 go to line 11 and check the No box 9 10 same Enter the amount from line 7 Subtract line 9 from line 8 Are the amounts on lines 6 and 10 the o X 12 13 14 15 Yes No Skip lines 11 through 14 go to line 15 Enter the smaller of line 1 or line 6 0 11 12 13 14 000 Enter the amount from line 10 Subtract line 12 from line 11 if line 10 is blank enter 14 000 14 Multiply line 13 by 15 Figure the tax whichever on 15 on 2 100 the amount line 7 Use the Tax Table or Tax Computation Worksheet 15 16 applies 64 66 593 693 16 17 Add lines 14 and 15 Figure the tax whichever on the amount on line 1 Use the Tax Table or Tax Computation Worksheet 17 applies Enter the smaller of line 16 are or 69 213 18 Tax on all taxable income line 44 If you line 17 Also include this amount on on Form 1040 1040 If you are filing Form 2555 on or 2555 EZ do not enter this amount on Form 18 line 44 Instead enter it or line 4 of the worksheet see page 38 on 66 693 filing Form 2555 2555 EZ the footnote in the worksheet page 38 before completing this line JSA 9A2021 1 000 51 36 9 T N3 3 7 03 15 2010 19 56 23 va 9 4 4 PRACTICE TOME LEEHAM SUPPLEMENT TO FORM 1040 SOURCES OF COMPENSATION OWNER SHIP DESCRIPTION TOTAL WAGES FEDERAL WITHHELD SOC SEC MEDICARE WITHHELD WITHHELD WAGES BIG DOG FASHION INC 380 000 195 000 7 000 9 000 TOT AL WAGES 380 000 195 000 7 000 9 000 GRAND TOTAL 380 000 195 000 7 000 9 000 OWNER SHIP WITHHOLDING FROM WAGES STATE WITHHELD CITY LOCAL WITHHELD BIG DOG FASHION INC 80 000 TOTAL WITHHOLDING FROM WAGES 80 000 QUALIFIED DIVIDENDS QUALIFIED DIVIDENDS JOE VULERO INC FROM FORM 1099 14 000 TOTAL FORM 1099 QUALIFIED LINE DIVIDENDS 14 000 TOTAL TO 1040 9B 14 000 ST ATEMENT 1 51369T N337 03 15 2010 19 56 23 V09 4 4 PRACTICE TOME LEEHAM SUPPLEMENT TO FORM 1040 PERSONAL EXEMPTION WORKSHEET 1 IS THE AMOUNT ON FORM ON 1040 4 LINE 38 GREATER YOUR THAN AMOUNT SHOWN IF LINE GO BELOW FOR TO LINE 2 FILING STATUS YES 2 TOTAL EXEMPTIONS MULTIPLIED BY 3 650 3 650 3 ENTER THE AMOUNT FROM FORM 1040 LINE 38 406 000 4 FILING STATUS INCOME LIMIT 166 800 5 SUBTRACT LINE 4 FROM LINE 3 239 200 6 IS LINE 5 GREATER THAN 122 500 61 250 FOR MFS X YES MULTIPLY ENTER THE 2 433 BY ON THE TOTAL 1040 NUMBER LINE OF 42 EXEMPTIONS RESULT FORM 2433 NO DIVIDE NOT A LINE WHOLE 5 BY 2 500 1 250 IF TO MFS THE IF NEXT THE RESULT IS NUMBER INCREASE WHOLE NUMBER 7 LI NE 6 X o 02 8 LINE 2 MULTIPLIED BY LINE 7 9 DIVIDE LINE 8 BY 3 0 10 DEDUCTION FOR EXEMPTIONS LINE 2 LESS LINE 9 2 433 ST ATEMENT 2 51369T N337 03 15 2010 19 56 23 V09 4 4 PRACTICE TOME LEEHAM SUPPLEMENT TO SCHEDULE A OTHER TAXES PERSONAL PROPERTY TAXES 1 200 TOTAL TO SCHEDULE A LINE 8 1 200 CASH CONTRIBUTIONS OTHER CASH CONTRIBUTIONS 50 MISCELLANEOUS ORGANIZATION S 22 000 TOTAL CASH CONTRIBUTIONS BEFORE LIMITATION 22 000 CASH CONTRIBUTION LIMITATION NONE TOTAL TO SCHEDULE A LINE 16 22 000 ST ATEMENT 3 51369T N337 03 15 2010 19 56 23 V09 4 4 PRACTICE TOME LEEHAM SUPPLEMENT TO SCHEDULE A ITEMIZED DEDUCTION WORKSHEET 1 SCHEDULE A LINES 4 9 15 19 20 27 AND 28 151 200 2 SCHEDULE CASUALTY A OR LINES THEFT 4 14 20 AND GAMBLING ON LINE AND 28 LOSSES INCLUDED 3 LINE 1 LESS LINE 2 151 200 4 LINE 3 MULTIPLIED BY 80 120 960 5 ADJUSTED GROSS INCOME 406 000 6 166 800 83 400 MARRIED FILING SEP 166 800 7 LINE 5 LESS LINE 6 239 200 8 LINE 7 MULTIPLIED BY 3 7 176 9 SMALLER OF AMOUNTS ON LINES 4 OR 8 7 176 10 LINE 9 DIVIDED BY 1 5 4 784 11 LI NE 9 LESS LI NE 10 2 392 12 TOTAL ITEMIZED DEDUCTIONS LINE 1 LESS LINE 11 148 808 ST ATEMENT 4 51369T N337 03 15 2010 19 56 23 V09 4 4 PRACTICE ...
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This note was uploaded on 03/31/2010 for the course BUSINESS 168 taught by Professor Weaver during the Winter '10 term at California State University , Monterey Bay.

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