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Question: John Fuji (birthdate June 6, 1980) moved

John Fuji (birthdate June 6, 1980) moved from California to Washington in December 2017. His earnings and income tax withholding for 2018 for his job as a manager at a Washington apple-processing plant are:
John Fuji (birthdate June 6, 1980) moved from California to Washington in December 2017. His earnings and income tax withholding for 2018 for his job as a manager at a Washington apple-processing plant are:


John’s other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:


Also, in accordance with the 2012 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
John received the following Form 1098 reporting mortgage interest and property taxes:


During 2018, John paid the following amounts (all of which can be substantiated):


John’s employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.
John also provides 100 percent of the support for his mother, Gala Fuji (Social Security number 323-11-4455). Gala is chronically ill and lives in an assisted living facility in Yakima. Her only income is interest of about $400 on a modest savings account.

Required:
Complete John’s federal tax return for 2018. Use Form 1040, Schedule 1, and Schedule A to complete this tax return. Make realistic assumptions about any missing data.

John’s other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:
John Fuji (birthdate June 6, 1980) moved from California to Washington in December 2017. His earnings and income tax withholding for 2018 for his job as a manager at a Washington apple-processing plant are:


John’s other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:


Also, in accordance with the 2012 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
John received the following Form 1098 reporting mortgage interest and property taxes:


During 2018, John paid the following amounts (all of which can be substantiated):


John’s employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.
John also provides 100 percent of the support for his mother, Gala Fuji (Social Security number 323-11-4455). Gala is chronically ill and lives in an assisted living facility in Yakima. Her only income is interest of about $400 on a modest savings account.

Required:
Complete John’s federal tax return for 2018. Use Form 1040, Schedule 1, and Schedule A to complete this tax return. Make realistic assumptions about any missing data.

Also, in accordance with the 2012 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075). John received the following Form 1098 reporting mortgage interest and property taxes:
John Fuji (birthdate June 6, 1980) moved from California to Washington in December 2017. His earnings and income tax withholding for 2018 for his job as a manager at a Washington apple-processing plant are:


John’s other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:


Also, in accordance with the 2012 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
John received the following Form 1098 reporting mortgage interest and property taxes:


During 2018, John paid the following amounts (all of which can be substantiated):


John’s employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.
John also provides 100 percent of the support for his mother, Gala Fuji (Social Security number 323-11-4455). Gala is chronically ill and lives in an assisted living facility in Yakima. Her only income is interest of about $400 on a modest savings account.

Required:
Complete John’s federal tax return for 2018. Use Form 1040, Schedule 1, and Schedule A to complete this tax return. Make realistic assumptions about any missing data.

During 2018, John paid the following amounts (all of which can be substantiated):
John Fuji (birthdate June 6, 1980) moved from California to Washington in December 2017. His earnings and income tax withholding for 2018 for his job as a manager at a Washington apple-processing plant are:


John’s other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:


Also, in accordance with the 2012 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
John received the following Form 1098 reporting mortgage interest and property taxes:


During 2018, John paid the following amounts (all of which can be substantiated):


John’s employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.
John also provides 100 percent of the support for his mother, Gala Fuji (Social Security number 323-11-4455). Gala is chronically ill and lives in an assisted living facility in Yakima. Her only income is interest of about $400 on a modest savings account.

Required:
Complete John’s federal tax return for 2018. Use Form 1040, Schedule 1, and Schedule A to complete this tax return. Make realistic assumptions about any missing data.

John’s employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA. John also provides 100 percent of the support for his mother, Gala Fuji (Social Security number 323-11-4455). Gala is chronically ill and lives in an assisted living facility in Yakima. Her only income is interest of about $400 on a modest savings account. Required: Complete John’s federal tax return for 2018. Use Form 1040, Schedule 1, and Schedule A to complete this tax return. Make realistic assumptions about any missing data.





Transcribed Image Text:

a Employrs c curty number 571-78-5974 Sate, accurale. VE the RS wobste at FASTI Use e file www.sgoviee OMB No. 1545-0008 b Employar idontication number (EIN 34-7654321 1 wag p T Copern 77,000.00 8,200.00 4 SOGRI SOCy lax W 4,774.00 6 Medicare lax withhed 1,116.50 e Employr's nama, addross, and P code Granny Smith Apple Co. 200 Ahtanum Road 77,000.00 5 Medicare wags and p 77,000.00 7 Sod ecurity ips Yakima, WA 98903 S Alocated ip d Contrul umter 9 Vefication code 10 Dependert care bonefs e Employ's int name and int Last neme Su. 11 Norguted pkans 12a See instrudtions for box 12 John Fuji 468 Bonnie Doon Avenue Yakima, WA 98902 13 A 120 pie 14 Olher 12c 12d 1 Employee's addrees and ZP code 15 Emplyur's stala ID number 16 state w p 17 Slale incoe x 18 Local wages, , c. 19 Lolincome t 20 Ly WAJ O CORRECTED (if checked) PAYER'S ame sirost addn diy or lown, stala or province, country, ZIP Paya's RIN (optiora) or forign poetal code, and tskephoine no. OMB N. 1545 0112 Braeburn National Bank 2018 Interest 1600 W. Nob Hill Blvd. 1 Interest income Income Yakima, WA 98902 1,300.00 Fom 1099-INT 2 Faty withdwal penally Copy B PAYERS TIN 54-9019016 RECIPENT'S TIN For Reciplent 571-78-5974 3 inest on US. Savings ords and Troas. otiligators REGIPIENTS name John Fuji 4 Federal ncome tK wihe Sivestment capeses $ 0.00 G Foreign x paid This is important tax information and is baing fumished to the IRS. If you are 7 Faig ontyar US poSesin Sirast addrs (nchudng apt. na) 468 Bonnie Doon Ave. retum, a nogligance paralty or other sanction may be imposed on you this income is taxable and the IRS determines that it has not bean raported 9 Spocied priete actvity bad red e og o paanbau 8 Tar eRempt nioret City or lown, state or province, country, and ZP or faroign postal code Yakima, WA 98902 10 Market discount 11 Bond pemlum FATCA rgS roquumert 12ikmipmon inyotipibe 13 Hai pemmont anpten Account number (poe iredructiore 14 Tax-canmpt and lax cred bond CUSP no. 15 Stale 16 Stae iecaion ne. 17 Stale tax withhold O CORRECTED (if checked) Caution: The amantshown may OMB No. 1545-0901 Inot be tuly deducle by yau. Lms basod on the loeri amaunt and he cost and value of the secund propany may apply, you my ony dedudini lo te Fadentif wenouned by you, acually paid by you, aritnet eintuied by'afotier penon REOPIENT SLENDERS ame, stroet address, dty or lown, stale or province, country, ZAPor foroign postal code, and fphone no. 2018 Mortgage Interest Braeburn National Bank 1600 W. Nob Hill Blvd. Statement Yakima, WA 98902 Fom 1096 1 Mongage interest recelved trom payerpybonower 7,800.00 Сopy B 2Outstandingmorage principal an df 2618 For Payer/ Borrower RECIPIENT'SLENDERS TIN PAYER'SBORROWER'S TIN 3 Morigaga onginaton date 12/1/2017 $ 255,342.00 4end of owpak interest The information in bon 1through 9is important tax inlomation and is baing fumihad to the IRS you are roquirod ile 54-9019016 571-78-5974 5 Morigage inurance premi PAYERSAKRROWERS name $ 2$ 6 Ponts pald on purchae of pincipa esidonce amum, a nogigence ponalty or other sanction may be imposed on you if the RS dutorminis that an underpayment ol tax euts bocane ovorstatod a deduction for this mortgag intarcet or kor these points, eported in boxs 1 and 6, or bocane you didn' report the olund of intemst box or badause you cimod a nondoducible item. John Fuji Stoet address pncuding apt no.) 7 X addroes of property sacuring morigage is the same as PAYER'S/BORROWER'S addrces, the box is chockud, or the address or descripion is antorod ih box a. 468 Bonnie Doon Ave. no City or town, stale or province, country, and ZIPor forcign postal code 8 Addres or deiption of proporty seouring mortgage (e Instructions) Yakima, WA 98902 ONumber of properties securing the 10 Omer morigage Prop. taxes $2,100 Account number (a instructions) 1000 Auto loan interest 1,575 Credit card interest 655 State sales tax 1,285 5,250 2,550 760 Assisted living charges for Gala Doctor bills Other deductible medical expenses Income tax preparation fee Job-hunting expenses Cash charitable donation to the Jonagold Research Center 500 925 400


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> Go to the IRS website (www.irs.gov) and assuming bonus depreciation is used, redo Problem 11, using the most recent interactive Form 4562, Depreciation and Amortization. Print out the completed Form 4562.

> Quince Interests is a partnership with a tax year that ends on September 30, 2018. During that year, Potter, a partner, received $3,000 per month as a guaranteed payment, and his share of partnership income after guaranteed payments was $23,000. For Octo

> Van makes an investment in a partnership in 2018. Van’s capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000. a. Calculate th

> Drew Freeman operates a small business and his payroll records for the first quarter of 2018 reflect the following: Drew’s employee identification number is 34-4321321 and his business is located at 732 Nob Hill Blvd. in Yakima, WA 98

> Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year will be $42,000, her dependent care expenses will be $6,300, and her itemized deductions will be $14,000. Assuming Phan files as head of household, use For

> Lamden Company paid its employee, Trudy, wages of $47,000 in 2018. Calculate the FICA tax: Withheld from Trudy's wages: Social Security $. $. $. $- Medicare Paid by Lamden: Social Security Medicare Total FICA Tax

> Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018, Junior generated wage income of $17,000. Junior is not a dependent of Donald and Junior’s 2018 tax liability is $500. Donald is considering gifting Junior

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