profileAnyelis Diaz

 

  • question 1.
  • Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at-home parent and Walt is a high school teacher. Skylar’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar’s mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter’s father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton’s support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt’s earnings from teaching are:
    A W-2 form shows details of Walter Black’s earnings and income tax withholdings for 2019. The form is divided into two Panels. The first panel contains a to f sections. It shows filled-in fields for the following: a. employee’s social security number: 700-01-0002 (highlighted), b. employer identification number (EIN): 31-1239867, c. employer’s name, address, and ZIP code: information about Las Vegas School District, e. employee’s first name, initial, and last name, and f. employee’s address and ZIP code. To be filled-in field in this panel is d. control number. The second panel contains 1 to 20 sections. It shows filled-in fields for 1. Wages, tips, other compensation: 51,200.00 (highlighted), 2. Federal income tax withheld: 4,310.00 (highlighted), 3. Social security wages: 51,200.00, 4. Social security tax withheld: 3,147.40, 5. Medicare wages and tips: 51,200.00, 6. Medicare tax withheld: 742.40, 12a. See instructions for box 12: DD, 7,900.00, 13. Retirement plan ticked, and 15. State: NV, employee’s state ID number. To be filled-in fields for this panel are: 7. Social security tips, 8. Allocated tips, 9, 10. Dependent care benefits, 11. Nonqualified plans, 12 b, 12 c, 12 d, 14. Other, 16. State wages, tips, etc., 15. State income tax, 18. Local wages, tips, etc., 19. Local income tax, and 20. Locality name. A foot note below the form reads, Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee’s FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2019. Department of the Treasury-Internal Revenue Service.The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.
    The Blacks received the following 1099-DIV from their mutual fund investments:
    An image shows the form 1099- DIV. The form is divided into two parts. The first part shows the following filled-in fields: Payer’s name, street address, city or town, state or province, country, ZIP, or foreign postal code, telephone no, and information about Cyber Funds Equities Fund; Payer’s federal identification number: 17-1234326; Recipient’s identification number: 222-43-7690; Recipient’s name; street address (including apt. no); city or town, state or province, country, and ZIP or foreign postal code. To be filled-in fields for this part are FATCA filling requirement (tick box), and account number (see instructions). The part two shows the filled-in fields for 1a. Total ordinary dividends $1,425.00, 1b. Qualified dividends $ 1,002.00, and 2a Total capital gain distr., $ 6,540.34. To be filled-in fields are as follows: 2b Unrecap. Sec. 1250 gain, 2c. Section 1202 gain, 2d. Collectibles (28%) gain, 3. Nondividend distributions, 4. Federal income tax withheld, 5. Investment expenses, 6. Foreign tax paid, 7. Foreign country or U.S. possession, 8. Cash liquidation distributions, 9. Non cash liquidation distributions, 10. Exempt-interest dividends, 11. Specified private activity bond interest dividends, 12. State, 13. State identification no., and 14. State tax withheld. A note on the side of the form reads, Dividends and distributions, Copy B, For Recipient: This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. A foot note below the form reads, Form 1099-DIV; (keep for your records); www.irs.gov/Form1099DIV; Department of the Treasury - Internal Revenue Service.The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows:
    Rental income$12,100Mortgage interest reported on Form 10988,600Homeowners’ association dues5,200Utilities1,200Maintenance3,800Depreciation (assume fully depreciated)0The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.
    Required: Complete the Black’s federal tax return for 2019. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E (page one only), Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.
  • question2A
  • .Dr. George E. Beeper is a single taxpayer born on September 22, 1971. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper’s Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2019 are:
    A W-2 form shows details of George Beeper’s earnings and income tax withholdings for 2019. The form is divided into two Panels. The first panel contains a to f sections. It shows filled-in fields for the following: a. employee’s social security number: 775-88-9531, b. employer identification number (EIN): 36-1389676, c. employer’s name, address, and ZIP code: information about Pine Medical Group, e. employee’s first name, initial, and last name, and f. employee’s address and ZIP code. To be filled-in field in this panel is d. control number. The second panel contains 1 to 20 sections. It shows filled-in fields for 1. Wages, tips, other compensation: 133,900.00 (highlighted), 2. Federal income tax withheld: 21,045.00 (highlighted), 3. Social security wages: 132,900.00, 4. Social security tax withheld: 8,239.80, 5. Medicare wages and tips: 133,900.00, 6. Medicare tax withheld: 1,941.55, 12a. See instructions for box 12: DD, 5,800.00, and 15. State: WA, employee’s state ID number. To be filled-in fields for this panel are: 7. Social security tips, 8. Allocated tips, 9, 10. Dependent care benefits, 11. Nonqualified plans, 12 b, 12 c, 12 d, 13. Checkboxes, Statutory employee, retirement plan, and third-party sick pay, 14. Other, 16. State wages, tips, etc., 15. State income tax, 18. Local wages, tips, etc., 19. Local income tax, and 20. Locality name. A foot note below the form reads, Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee’s FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2019. Department of the Treasury-Internal Revenue Service.Dr. Beeper owns a rental house located at 672 Lake Street, Spokane, WA 99212. The house rents for $1,000 per month and was rented for the entire year. The following are the related expenses for the rental house:
    The house was purchased on July 5, 1984. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself. He spends about 10 hours per month on the rental.
    In 2019, Dr. Beeper sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single-family home. Dr. Beeper’s home sold on February 12, 2019 for $345,000 net after commissions. He acquired the home on June 3, 2001 for $260,000 and had made improvements of $10,000.
    Dr. Beeper was divorced on January 1, 2013. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $800 per month. Dr. Beeper made all his monthly alimony payments in 2019.
    Required: Complete Dr. Beeper’s federal tax return for 2019. Determine if Form 8949 and Schedule D are required. If so, use those forms and Form 1040, Schedule E (page one only), and Form 8582 (page one only) to complete this tax return. Do not complete Form 4562 for reporting depreciation.