Amount•Alan – Gross earnings as self–employed attorney (Employer Federal ID number (EIN) 05-0678888) $110,000•Alan- Estimated taxes paid in during year 4/15/12: $2,100….. 6/15/12: $2,100….. 9/15/12: $2,100….1/15/13: $2,135 8,435•Alan-Estimated state income tax paid during year 4,730•Ordinary dividends from GE stock 15,950•Interest on J.C. Penny Corp. domestic bonds 3,300•Savings account interest—Pioneer Savings Bank 700•Series EE bonds that matured in 2012 (used to pay for Ian’s tuition,
books and fees; ½ is interest)
6,100•Interest on New York municipal bonds 3,450•Cheryl
– Salary as teacher
45,400•Cheryl- Federaland FICA income tax withheld during year 8,473•Home
mortgage interest
15,600•Sales
tax paid
3,115 Alan’s Business Expenses Use of auto: (Bought 2/15/12 $25,000) **Travel expenses: Office in the home: Total
miles 28,000 Hotel $3,700
Office supplies-direct $890 Business
miles 22,000 Meals $ 820
Telephone – direct $1,100 Parking
$280 Entertainment
of clients $1,080 Utlities – indirect $ 3,400Gas
$9,000
Conference fee $1,000 Insurance -indirect $1,600Insurance
$1,200 Laundry $150
Repairs – indirect $1,800 Depreciation
–car ? Transportation $ 500
Depreciation-home * ? *Depreciation rate for part use of home office is 2.461% Equipment cost*** $6,500 per IRS rules (direct) **There was no element of personal pleasure included in the travel. *** Equipment purchased 6/12/12Cheryl’s ExpensesProfessional dues $2,750Professional journals $1,500Uniform $1,650Alan’s ExpensesSalary to secretary $15,000FICA ?SUTA/FUTA 725ACC 416 Spring 2013 Silkoff Alan and Cheryl also own a duplex (8 Duped St, Willimantic, Ct 06226 that they managed themselves. Theproperty was purchased on 6/2/2008. It produced the following rental income and expenses (80% rental): Item Amount (1) Gross rental income $9,200(2) Mortgage interest 6,300(3) Insurance 600(4) Repairs and maintenance 1,050(5) Real Estate taxes 1,200(6) Utilities 1,850(7) Homeowners’ association dues 2,475 (8) Depreciation ?Contribution to a traditional IRA – Alan $7,000Rental income (loss) on XYZ Limited Partnership – Cheryl 15,000Ordinary business income (loss) on ABC Limited Partnership- Alan (6,000)Automobile registration fees (Alan $700; Cheryl $500) 1,200Property taxes on personal residence 5,200B Anthem Blue Cross health insurance premiums (Cheryl is not covered by employer-provided medical insurance) 14,400Other medical expenses 2,470Tax preparation fees 1,750Charitable Contributions :Cash $9,000GE stock-FMV 12,000 GE stock-Adjusted basis 7,000Reported (to Willimantic Police Department) theft of Cheryl’s jewelry from her home. Purchased ten years ago at acost of $10,300; appraised value was $9,700. Insurance reimbursement was $2,000. ?Ian completed first semester at Metropolitan State College. Tuition, books and fees (SS# 223-22-1234) $4,630Alan’s stock trades yielded: Date purchased Date Sold Cost SoldLT- 500 sh Chipotle 3/16/09 4/13/12 $8,600 $3,700 LT-
200 sh Mattel 8/22/11 8/23/12
2,300 5,500 ST- 100 sh United Airlines 3/18/11 2/5/12 2,000 1,000 ST- 400 sh Apple 10/12/12 12/30/12 12,500 20,300 Required:Complete Alan and Cheryl Hoover’s federal tax return(Form 1040 only) for 2012. Use Form 1040, Schedules A,B,C,D, E, Forms 2106, 4562, 6251, 8828 and any other appropriate schedule(s) and form(s) you may need. Make realistic assumptions about any missing data. Do only the federal tax return.





