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
2019. FOR EXAMPLE, USE 2019 AMOUNTS FOR STANDARD DEDUCTION,
PHASEOUT AMOUNTS, ETC.
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
They have provided you with the following 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 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 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)
Internet Service used 100% for her work
Premium for Insurance Policy (100% Business)
Worker Salaries (assume contract labor) $78,693
Cost of Food Sold
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
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)
DO NOT FILE ANY FORMS RELATING TO FOREIGN ACCOUNTS
Chandler's American Mutual Funds Account at Edward Jones
: ASSUME IRS NOTIFICATION WAS PROVIDED BY BROKER
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
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
DO NOT CONSIDER DEPRECIATION FOR THIS PROPERTY.
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
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
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)
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)
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
PAPERWORK NOT REQUIRED BY THE IRS.
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