Required:• Use the following information to complete Paige Turner’s 2013 federal in-come tax return. If information is lacking, use affordable assumptions to fill in the gaps.Info:1. Paige Turner is single and has two kids from her earlier marriage. Alilives with Paige, and Paige offers greater than half of her help. Leif lives along with his father, Will (Lief lived with Will for all of 2013). Will offers greater than half of Leif’s help. Paige pays “alimony” of $400 per 30 days.to Will. The funds are to proceed till Leif reaches age 18, when they are going to be reducedto $150. Paige offers you with the following extra information:• She makes use of the money methodology of accounting and a calendar yr for reporting.• She needs to contribute to the presidential election marketing campaign.• Paige lives at 523 Essex Road, Bangor, ME 04401.• Paige’s birthday is Might 31, 1975.• Ali’s birthday is October 5, 2004.• Leif’s birthday is December 1, 2002.• Paige’s Social Safety quantity is 007-16-4727.• Ali’s Social Safety quantity is zero05-61-7232.• Leif’s SociÃ¥l Safety quantity is 004-23-3419.• Will’s Social Safety quantity is 006-45-6333.• She doesn’t have any overseas financial institution accounts or trusts.2. Paige is employed as a nuclear engineer with Atom Methods Consultants, Inc.(ASCI). ASCI’s federal employer identification quantity is 79-1234466. Paige’s pay stubs point out that she had $7,230 withheld in federal taxes, $four,987 in state taxes, $four,495 in Social Safety taxes, and $1,051 in Medicare taxes. ASCI has an intensive fringe advantages program for its workers.three. Paige earned wage of $70,000 (earlier than subtracting her 401(ok) and versatile spending plan contributions). She contributed $7,000 to her 401(ok) account, and she or he contributed $three,600 to her versatile spending account.four. ASCI paid $397 of entire life insurance coverage premiums to cowl Paige’s private entire life insurance coverage coverage. ASCI additionally paid well being membership dues of $900 to a close-by well being membership on Paige’s behalf.5. Benefiting from ASCI’s academic help program, throughout the fall Paige enrolled in two graduate engineering courses at an area school. ASCI paid her tuition, charges, and different course-related prices of $2,300.6. Paige acquired free parking in the firm’s safety storage that will usually value $200 per 30 days.7. Paige manages the security program for ASCL In recognition of her superior dealing with of three potential crises throughout the yr, Paige was awarded the Worker Security Award on December 15. The money award was $500.eight. On January 15, 2013, Paige’s father died. From her father’s property, she acquired inventory valued at $30,000 (his foundation was $12,000) and her father’s home valued at $90,000 (his foundation in the home was $55,000).9. Paige owns a number of different investments and in February 2014 acquired an announcement from her brokerage agency reporting the curiosity and dividends earned on the investments for 2013. (See Exhibit A.)10. As well as to the investments mentioned above Paige owns 1,000 shares of Grubstake Mining & Growth frequent inventory. Grubstake is organized as an S company and has 100,000 shares excellent (S corp. ID quantity 45-4567890). Grubstake reported taxable revenue of $200,000 and paid a distribution of $1.00 per share throughout the present yr. Paige tells you that Grubstake sometimes doesn’t ship out its Okay-l experiences till late April. How-ever, its preliminary report has been in keeping with the Okay-l for a few years. (See Exhibit A.) Paige doesn’t materially take part in Grubstake’s actions.Il. Paige slipped on a moist spot in entrance of a pc retailer final July. She broke her ankle and was unable to work for 2 weeks. She incurred $1,300 in medical prices, all of which had been paid by the proprietor of the retailer. The shop additionally gave her $1,000 for ache and struggling ensuing from the damage. ASCI continued to pay her wage throughout the two weeks she missed due to the accident. ASCI’s plan additionally paid her $1 ,200 in incapacity pay for the time she was unable to work. Below this plan ASCI pays the premiums for the incapacity insurance coverage as a tax-able fringe profit.EXHIBIT A Types 1099 and 1098That is necessary tax information and is being furnished to the Inner Income Service.Entity Common DynamicsEntity1099-DiV DividendS & DistributionsDescriptionGross certified dividends1099-rnt IhterestAmount$300AmountS300700 200Quantity$7,100435DescriptionGross interestGross interestGross interestNew Jersey Financial Growth bondsIBM bondsState of Nebraska bondsEntitySunbelt Credit score UnionNortheast Financial institution-10982Mortgaéé Curiosity StatementDescriptionMortgage interestHome-equity mortgage interestGrubstake Mining & Growth: preliminary report (preliminary Okay-1) to Paige for the 2013 tax yearDistribution toOrdinary revenue (1 % of $200,000)$1,000$2,00012. Paige acquired a Type 1099-B from her dealer for the sale of the following se-curities throughout 2013. The adjusted foundation quantities had been reported to the IRS.SecurityNebraska state bondsCassll Corp (500 shares)sale Date03/14/13 10/20/13PurchaseDate10/22/0702/19/12Gross sales CommissionHerPrice Paid on SaleBasis$2,300$eight,500$160$425Sl ,890$9,76013. As well as to the taxes withheld from her wage, she additionally made well timed esti-mated federal tax funds of $175 per quarter and well timed estimated state in-come tax funds of S 150 for the first three quarters. The $150 fourth-quarter state cost was made on December 28, 2013. Paige would really like to obtain a refund for any overpayment.14. Due to her busy work schedule, Paige was unable to present her accoun-tant with the tax paperwork essential for submitting her 2012 state and federal revenue tax returns by the due date (April 15, 2013). In submitting her extension on April 15, 2013, she made a federal tax cost of $750. Her return was ultimately filed on June 25, 2013. In August 2013, she acquired a federal refund of $180 and a state tax refund of $60. Her itemized deductions for2012 had been $12,430.15. Paige discovered a renter for her father’s home on August I. The month-to-month hire is$400, and the lease settlement is for one yr. The lease requires the tenant to pay the first and final months’ hire and a $400 safety deposit. The safety deposit is to be returned at the finish of the lease if the property is in good situation. On August l, Paige acquired $1,200 from the tenant per the phrases of the lease settlement. In November, the plumbing froze and several other pipesburst, The tenant had the repairs made and paid the $300 invoice. In December, he diminished his rental cost to $100 to compensate for the plumbing repairs. Paige offers you with the following extra information for the rental in 2013.Property taxes Different upkeep expensesInsurance expense Administration feeDepreciation (to be computed)$770285495350The rental property is positioned at 35 Harvest Road, Orono, ME 04473. Native apply is to allocate 12 p.c of the truthful markét worth of the property to theland. (See #eight.) Paige makes all selections with respect to the property.16. Paige paid $2,zero50 in actual property taxes on her principal residence. The actual property tax is used to pay for city colleges and different municipal companies.17. Paige drives a 2012 Acura TL. Her automobile registration price (primarily based on the automobile yr) is $50 and covers the interval 1/1/13 by way of 12/31/13. As well as, she paid $280 in property tax to the state primarily based on the e-book worth of the automobile.18. As well as to the medical prices offered in #11, Paige incurred the following unreimbursed medical prices:Dentist DoctorPrescription drugsOver-the-counter medicine OptometristEmergency room chargesLASIK eye surgical procedure Chiropractor$ 310 390215140 1252,00026519. On March l, Paige took benefit of low rates of interest and refinanced her $75,000 residence mortgage together with her unique lender. The brand new residence mortgage is for 15 years. She paid $215 in closing prices and Sl ,500 in low cost factors (pay as you go curiosity) to acquire the mortgage. The home is price $155,000, and Paige’s foundation inthe home is $90,000. As a part of the refinancing association, she additionally obtained a $10,000 home-equity mortgage. She used the proceeds from the home-equity loanto cut back the steadiness due on her bank cards. Paige acquired a number of Type 1098 statements from her financial institution for curiosity paid by her in 2013. Particulars seem beneath.(See additionally Exhibit A on web page C-l IPrimary residence mortgageHome-equity loanCredit cardsCar mortgage$7,100435 49839020. On Might 14, 2013, Paige contributed clothes to the Salvation Military. The origi-nal value of the clothes was $740. She has substantiation valuing the donation at $360. The Salvation Military is positioned at 350 Stone Ridge Street, Bangor, ME 04401. As well as, she made the following money contributions and acquired an announcement from every of the following organizations acknowledging her contribution:Larkin Faculty United WayFirst Methodist ChurchAmos Home (homeless shelter) Native Chamber of Commerce$850125 79020010021. On April I, 20’13, Paige’s home was robbed. She apparently interrupted the burglar as a result of all that is lacking is an vintage brooch she inheritedfrom her grandmother (June 12, 2005) and $300 in money. Sadly, she did not have a separate rider on her insurance coverage coverage masking the jewellery. Due to this fact, the insurance coverage firm reimbursed her solely $500 for the brooch. Her foundation in the brooch was $6,000, and its truthful market worth was $7,500. Her insurance coverage coverage additionally limits to SIOO the amount of money that may be claimed in a theft.22. Paige sells actual property in the night and on weekends (thought-about an energetic commerce or enterprise). She runs her enterprise from a rental workplace she shares with a number of different realtors (692 River Street Bangor, ME 04401). The identify ofher enterprise is Turner Actual Property and the federal identification quantity is 05-8799561. Her enterprise code is 531210. Paige has been working in a business-like means since 2003 and has all the time proven a revenue. She had the followingincome and bills from her enterprise:Commissions earnedExpenses:AdvertisingTelephoneRear property licenseRentUtilities$21,2502,200951306,000600She has used her Acura TL in her enterprise since July I, 2013. Throughout 2013, she correctly documented 6,000 enterprise miles (1,000 miles every month). The totalmileage on het automobile (i.e, business- and personal-use miles) throughout the yr was15,000 miles (together with 200 miles commuting to and from the actual property workplace).In 2013, Paige elects to use the commonplace mileage methodology to calculate her automobile bills. She spent $45 on tolls and $135 on parking associated to the actual property enterprise23. Paige’s firm has an accountable expense reimbursement plan for workers from which Paige receives $12,000 for the following bills:AirfareHotelMealsCar rentalsEntertainment Incidentals$four,7003,4002,00060090040024. Throughout 2013, Paige additionally paid $295 for enterprise publications apart from these paid for by her employer and $325 for an area CPA to put together her 2012 tax return.Required Type 1040, Schedule A, Schedule D, Schedule E, Schedule SE, Type 4562 and Type 8949

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