credits

Federal Individual Income
December 3, 2019
general information
December 3, 2019

credits

Utility expense $1,500
● Software rental $5,400
● Journals and magazines $150
● Training seminars $1,250Utility expense $1,500
● Software rental $5,400
● Journals and magazines $150
● Training seminars $1,250
● Supplies $1,100
● Donations to a national political campaign fund $700
● Estimated federal income tax payments $26,400
● Estimated state income tax payment $8,000
In her office, she has computer equipment of $10,000 and office furniture and fixtures of $15,000, all of which was purchased in November 1, 2012. She elected to depreciation these assets rather than immediately expensing them under Section 179 or using bonus depreciation.
Kelly and Chanelle’s home was burglarized during the year on June 4, 2014. The burglar stole an entertainment system (purchased April 10, 2011; FMV $10,000; cost $12,000), an antique diamond ring and pendant (purchased April 20, 2001; FMV $22,000; cost $15,000), and a painting (purchased April 30, 2009; FMV $10,000; cost $3,000). The insurance company pays $1,000 for the entertainment system, $3,000 for the jewelry, and $400 for the painting.
Complete Form 1040 and accompanying schedules for Kelly and Chanelle’s federal income tax return for 2014 year. Use all rates, deductions, personal exemptions and dependency exemptions that are applicable for 2014. Ignore any Alternative Minimum Tax, Additional Medicare Tax, Net Investment Income Tax, credits and penalties.

● Supplies $1,100
● Donations to a national political campaign fund $700
● Estimated federal income tax payments $26,400
● Estimated state income tax payment $8,000
In her office, she has computer equipment of $10,000 and office furniture and fixtures of $15,000, all of which was purchased in November 1, 2012. She elected to depreciation these assets rather than immediately expensing them under Section 179 or using bonus depreciation.
Kelly and Chanelle’s home was burglarized during the year on June 4, 2014. The burglar stole an entertainment system (purchased April 10, 2011; FMV $10,000; cost $12,000), an antique diamond ring and pendant (purchased April 20, 2001; FMV $22,000; cost $15,000), and a painting (purchased April 30, 2009; FMV $10,000; cost $3,000). The insurance company pays $1,000 for the entertainment system, $3,000 for the jewelry, and $400 for the painting.
Complete Form 1040 and accompanying schedules for Kelly and Chanelle’s federal income tax return for 2014 year. Use all rates, deductions, personal exemptions and dependency exemptions that are applicable for 2014. Ignore any Alternative Minimum Tax, Additional Medicare Tax, Net Investment Income Tax, credits and penalties.

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