Required - All of the following must be completed and turned in:
- Prepare 2015 Form 1040
- Prepare 2015 Schedules A, B, C, E, and SE
- Prepare "Qualified Dividends and Capital Gain Tax Worksheet - Line 44"
o Found in the 2015 Form 1040 instructions, page 44
Extra Credit:
- Prepare 2015 Form 6251
Due Date: Beginning of class on June 21st
You work as a tax professional at UNO, LLP. Tyler Johnson has hired you to prepare his 2015 tax return. He has mailed you a packet of information that will assist you in preparing his taxes. Upon further review of his information, you spoke with Tyler and received the following additional information:
1. Tyler helped support his brother during 2015 who lives in Iowa. He sent him $7,000 to help him pay various expenses. In addition to Tyler's support, his brother received about $15,000 in investment and pension income.
a. His brother is Thomas Johnson (SSN: 342-54-6859).
2. The personal property taxes paid were on Tyler's vehicle that he paid with his annual registration.
3. Tyler's mortgage on his personal residence is on his original acquisition loan.
4. Tyler materially participated in his consulting business, which was started in 2012. He does not need to file 1099 forms.
a. The meals expense is various client lunches that he paid for while out with clients surveying farm land.
5. In additional to his cash contributions, Tyler donated some Carolina stock to Boys Town in July that was worth $3,250. He originally bought the stock in 2002 for $700.
6. Charter Partnership is considered a passive activity for Tyler.
7. Tyler itemized his deductions in 2014.
8. Tyler had tax preference items of $8,400 (specified private activity bond interest) UNO, LLP's address is 1040 South 102nd Street, Omaha, NE 68166 and their EIN is 14-7598461. Your PTIN is P11223355.
Hints:
• On the 1099-DIV, the amount in box 1b is indicating the amount of qualified dividends included in the amount listed in box 1a. Do not double up on the dividend income!
• On the 1099-INT, the amount in box 1 is taxable interest, which was received in addition to the tax-exempt amount in box 8. Also, the amount in box 9 is indicating the amount in box 8 that is private activity bond interest. Do not double up on the tax-exempt interest!
• All supporting schedules (Schedule A, B, C, etc.) and the 1040 should match!
• Use page two of the K-1 to help you determine where the partnership income should be reported.
• Tyler does not qualify for the optional methods in determining self-employment taxes.
Please Note: As the syllabus indicates, these are individual projects not group projects! You are free to utilize the textbook and the form instructions for help. If you need additional assistance feel free to contact me. Also, projects should be completed manually using tax forms available on the IRS website www.irs.gov. The website has some forms available that can be "filled-in" by the user. No tax preparation software such as TurboTax may be used. No other forms are necessary to fill out except for what is required above.