Dr. Carol Harris, CPA is a single taxpayer and she lives at 674 Yankee Street
Dr. Carol Harris, CPA is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her social security number is 793524995. Carol is an associate professor of accounting at a local college. Carol’s earnings and withholding from the collage for 2014 are:
Earnings | $ 54,000 |
Federal income tax withheld | $8,800 |
State income tax withheld | $2,500 |
FICA tax of $3,348 and Medicare tax of $ 783 were withheld from Carol’s earnings. Carol’s other income includes interest of $145 from savings account at New England Bank and $450 of qualified dividends from Microsoft.
During the year, Carol paid the following amounts (all of which can be substantiated):
Home Mortgage interest | $6,300 |
Visa card interest | $350 |
Auto insurance | $750 |
Property taxes on personal residence | $2,650 |
Other medical expenses | $810 |
Charitable contributions (in cash) | $1,000 |
Carol had the following stock market transactions, all of which were reported on form 1099-b along with the basis of the stock sold:
Stock | acquired | Sold | price | Basis |
Trout Co. | 04/05/04 | 10/15/14 | $6,000 | $3,600 |
Bass Co. | 02/01/14 | 08/03/14 | $7,000 | $5,500 |
Shark Co | 09/12/05 | 10/15/14 | $7,000 | $8,500 |
In addition to being a professor at the local college, Carol Maintains a CPA practice.
Income and expenses from this activity are:
Fees from CPA practice (all paid by check) | $38,800 |
Office Rent | $3,600 |
Supplies | $750 |
Computer tax service | $1,200 |
Mileage (4,107) | $2,300 |
Client meals and entertainment | $2,740 |
Telephone | $975 |
Other expenses | $1,400 |
Carol drove her car (placed in service on January 1, 2012) 20,000miles in total, of which 5,000 miles were for commuting. Carol made 2014 estimated tax payment to the us treasury of $3,000 for each quarter.
REQUIRED: Complete Carol’s fedral tax return for 2014. Use form1040, schedule a, schedule c, schedule d, form 8949, schedule se. Forms are on irs .gov
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Rating:
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Solution: Dr. Carol Harris, CPA is a single taxpayer and she lives at 674 Yankee Street