FOR TAX YEAR 2019 (must use 2019 forms). USE THE LAW AS IT EXIST FOR 2019.
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Could you fill out the tax forms for this tax return please.

FOR TAX YEAR 2019 (must use 2019 forms). USE THE LAW AS IT EXIST FOR



Your clients, Chandler and Monica Bing have hired you to complete their 2019 tax

return (2019 tax year). They wish to pay the minimum amount of taxes possible in this

tax year.

Disregard AMT.

They have provided you with the following information.

General information

(All ages as of Dec 31, 2019)

They provide the majority of the support and home for their two adopted children, Jack

and Erica. The children were NOT adopted in 2019.

They also provide 100% support for "Uncle Joey." Joey is not biologically the uncle to

Erica or Jack, but he does live with the Bings full-time in his "Joey room." Joey's only

source of income in 2019 is a settlement from a jam related injury he sustained in the

amount of $1,500 for bodily injury and $4,000 for compensatory damages.

Monica's mother, (Judith Geller) lives near Monica and Chandler in her own apartment

which Monica pays for ($15,000 per year - including utilities) starting in May after her

dad died. Except for $80,000 which Judith received in Sept. 2019 as an inheritance

from her deceased husband's estate (her husband died in May. 2019), she has no other

source of income (assume she receives no social security).

The Bing's friend Phoebe died in January 2019 and she left a lump sum of $200,000 in

life insurance proceeds to the Bings, which Chandler invested in mutual stock funds and

an interest-bearing cash account at Edward Jones - see below.

Monica's friend Richard gifted an antique mustache comb to Chandler. Its fair market

value is $1,100 and Richard's cost to acquire the comb was $50.

Chandler won $1,200 from a Texas Lotto game. He paid $250 total for several tickets

and retained the receipts. Chandler lost gross $300 rolling dice. He had no other

winnings and has documentation.

Chandler's information

Chandler works as an advertising executive. He received a W-2 (see attached).

Chandler is eligible for a bonus each year. Based upon his performance in 2019 he will

receive a $10,000 bonus. The bonus is paid in January 2020.

His firm does NOT reimburse him for any out of pocket expenses that he may incur.

Chandler adopted a duck and a chick from a local pet store. Adoption fees were $30.

Monica's Information

Monica is a cash basis, self-employed chef with her own restaurant. She didn't receive

any 1099-Misc forms, but her total deposits in her business bank account for 2019 show

$251,723. In addition to amounts collected from the restaurant, she also received a

payment of $5,000 in cash on Dec 31, 2019 from a former catering client for a catering

job she performed in late 2017. She did not receive a Form 1099 for this amount and

she did not put this amount in her bank account.

Monica rents a space to have her restaurant, but Monica also uses a small room (100

sq ft) in her home (2,000 sq ft) to keep up with payroll, order supplies, and other

administrative duties. She uses her SS number in lieu of an EIN. She incurred the

following business related expenses during the year:

Restaurant Expenses (utilized at Restaurant)



Legal fees




Internet Service used 100% for her work




Premium for Insurance Policy (100% Business)


Worker Salaries (assume contract labor) $78,693





Cost of Food Sold


Home Expenses

Lawn Care






During 2019 Monica purchased new appliances in March to use in her restaurant

business. The cost of the equipment was $16,825. She wishes to maximize her

depreciation deduction.

Addition information Interest Income


Interest from a City of New York municipal bond (see 1099-INT)

AT&T bond (see 1099-INT)

Edward Jones Money Market (see 1099-INT)


Dividend Income


Chandler's American Mutual Funds Account at Edward Jones

(see 1099-DIV)

Stock Transactions


Nintendo, 5 shares sold, net sales proceeds from broker $2,000;

Date sold 03/1/2019, Basis $ 50 per share, date purchased 10/3/2015

Apple, 30 shares sold, net sales proceeds from broker $300;

Date sold 4/2/2019, Basis $150 per share, date purchased 1/10/2018

Sony, 10 shares sold, net sales proceeds from broker $100;

Date sold 4/1/16, Basis $1 per share, date purchased 4/1/2015

Rental Property

Monica and Chandler purchased a rental property in April 2013. For 2019 they had

rental income of $25,000. The property's address is 4506 Stassney, Austin Texas


The expenses for the year were as follows:

Mortgage interest (see 1098)

Repairs and maintenance





Other Investments

Business #1 (Viva Las Gaygas). They invested $10,000 for a 75% share in this

business. Chandler is a material participant in this business. The business had a profit

of $10,000 in 2019. See K-1 for details.

Report the net taxable income from this investment on Sch E, Part II.

Do not fill out

passive activity forms)

Medical Expenses (unreimbursed portions)

Premiums for health insurance for the family


(this is the after tax portion Chandler had to pay for the medical Plan provided

by his employer)

Medicine and drugs (prescription)




Other Unreimbursed "qualified" medical expenses paid by

the taxpayer

in 2019


all relating to doctor care and a hospital stay

when Joey fell and broke his collarbone.....again, etc.


Mileage to & from a medical clinic in Houston (475 miles on Dec 11, 2018)


Home Mortgage paid on San Marcos home paid to Country (see form (1098)

Mortgage paid on rental house (paid to Chase) (see form 1098)

Business Use Credit Card (100%) used by Monica for her business $500


Real Estate Taxes - Home

$ 4,800

Real Estate Taxes - rental house


Contributions (you have verified all dates as correct)

All "cash" and clients have all required receipts and required documentation. (all are IRS

recognized non-profit organizations)

Salvation Army (check dated in 6/20/19)


Girl Scouts of America (ck dated 04/05/19, received cookies worth $10)


Church (paid by check dated 10/11/19)



CPA fees

Income Tax preparation fees (paid in May 2019 for 2018 return $ 2,000

assume 50% is related to Monica's Sch C)

Chandler's unreimbursed "work related" office supplies


Chandler's airfare to a one-day business meeting in Tulsa, OK


Interest paid on Chandler's student loan (got his master's in 2014) $2,800

Child care Expenses

Paid for twins: Five Star After-School Care,

Austin, TX ID# 05-3434567 (two days a week)

$ 7,850

Estimated Taxes Paid (on time)

Paid $1,000 for each of the four quarters; total of $4,000.

Needed: Your textbook, IRS Forms, and references such as Pub 17

PREPARE the couple's joint tax return for 2019. Assume that they want to claim the maximum

amount of deductions possible and pay the minimum amount of taxes.

Make sure to use the 2019 TAX RATES SCHEDULES

Turn in a fully prepared tax return with all required schedules just as if this was being filed with

the IRS- use supporting working papers and/or schedules which can help explain your

computations For example, if there is not enough lines to schedule out your totals, use a

supporting schedule which shows how you arrived at the total. DO NOT TURN IN EXTRA


Only attach required forms and schedules. Points will be deducted for non-necessary forms or


If any deductions are limited attach a worksheet showing the calculation of the


Subject: Accounting, Business

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