You are to use 2015 tax forms. Also be sure to use the 2015 tax


Question Description:

30

You are to use 2015 tax forms. Also be sure to use the 2015 tax numbers for all calculations. <----- IMPORTANT When completed you should turn in forms 1040, Schedule A, Schedule B, Schedule C, Schedule D, Form 8949, Form 6251 and Schedule SE. Final Tax Project Instructions: Please complete the required federal individual income tax return forms for the following taxpayers. Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice President of Sales at a small start-up company. Diana is a former advertising executive who currently consults with former clients. She also serves on the Board of Directors of an advertising company. The Cohens have three children: Rebecca (18), Alan (15) and David (12). During the year, Rebecca left home to attend a liberal arts college. The Cohens plan to file a joint tax return. The Cohens provided the following information: Joseph’s Social Security number is 598-94-2583 Diana’s Social Security number is 301-52-2942 Rebecca’s Social Security number is 887-44-8710 Alan’s Social Security number is 810-42-9092 David’s Social Security number is 855-11-3021 The Cohen’s mailing address is 85 North Maple Drive, Pleasantville, New Jersey 08233 Rebecca, Alan, and David are tax dependents for federal tax purposes Joseph Cohen reported the following the following information relating to his employment during the year: Company Gross Wages Federal Income Tax Withholding State Income Tax Withholding Alternative Energy $115,325 $28,230 $13,400 The above amounts do not reflect any income items described below. Joseph’s employer withheld all applicable and appropriate payroll taxes on all income for which it was required to withhold. Diana Cohen received the following revenue during the year (she uses the cash method of accounting). Consulting revenue reported to her on a form 1099-MISC, Box 7 High-end Retail $32,000 Jensen’s Health Products $8,500 Strategic Solutions $3,750 Board of Directors fees reported to her on a form 1099-MISC, Box 7 Natural Sunshine, Inc. $6,500 During the year, Diana paid the following business expenses: Consultant-related Airfare $2,900 Hotel $1,450 Meals $390 Parking $320 She drove 290 business miles for her consulting related activities (she has documentation to verify) Board of Director-related- Meals $125 Hotel $225 She drove 315 business miles for her Board of Director activities (she has documentation to verify) Neither business required the filing of forms 1099 to report payments made during the tax year. In addition, Ms. Cohen drove a 2010 Lexus purchased on January 1, 2011 for all of her business mileage. She drove the vehicle a total of 10,605 miles during the year for all purposes. She has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes. The Cohens also received the following during the year: Interest income from First Bank of New Jersey $320 Interest income from Patterson, New Jersey School District $200 Interest income from U.S. Treasury Bond $350 Interest income from General Mills corporate bond $400 Qualified dividend income from Rio Tinto $1,500 Qualified dividend income from Microsoft $750 Qualified dividend income from Cooper Tire $200 Qualified dividend income from Cardinal Health $425 Qualified dividend income from Union Pacific $140 Qualified dividend income from Procter & Gamble $190 Qualified dividend income from PepsiCo $225 Qualified dividend income from Kellogg $200 Qualified dividend income from Abbott Labs $275 Qualified dividend income from 3M $350 Dividend income (not qualified) from China Fund $2,000 The Cohens did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year. The Cohens had the following activity in their brokerage account during the year. All transactions were reported on a form 1099-B with Box A checked: Sold 2,000 shares of Microsoft 7/1/CY (current year) $22,500 Sold 75 shares of App

Answer

30