Accounting 3020 Summer 2016
Tax Return Project #2
Required:
–
Prepare 2015 Forms 1040 and 8949
Prepare 2015 Schedules A, B, and D
Due Date: Beginning of Class on June 9th
Neal and Norah Jones are married and have three children. Their address is 333 S. Harrison Street,
Omaha, NE 68146. Neal is employed as a business executive and Norah is a stay-at-home mom that
runs a small Avon business on the side. The Jones’ personal information is as follows:
Name
Neal S.
Norah K.
Jackie (daughter)
Jared (son)
Jane (daughter)
SSN
215-60-4444
301-60-6666
713-84-7777
714-87-2222
714-89-3333
Birthday
12-10-75
05-04-76
04-15-01
08-08-04
01-16-06
Neal and Norah had the following income and expenses during 2015:
Income:
Neal’s Salary
Interest Income from USA Bank on savings account
Interest Income from City of Omaha bond
Gift from Neal’s mother
Dividend Income from ABC Corporation (not qualified)
Life insurance proceeds on death of Norah’s father
Flow-through Income from MNO Partnership (from Schedule E)
Value of Norah’s inheritance from her father’s estate
Proceeds from asset sales* (see next page)
Expenses:
Qualified Medical Expenses
Interest paid on credit cards
Home mortgage interest from Form 1098
Interest on car loan
State Income Tax Withholding
Federal Income Tax Withholding
Property taxes on automobiles
Real estate taxes on home
Contributions to traditional IRA for both Neal and Norah
Tax return preparation fee
Charitable contributions (cash contributions to public charity)
Unreimbursed employee business expenses incurred by Neal
210,000
3,200
800
25,000
2,300
100,000
1,850
155,000
60,250
12,000
950
9,500
1,250
12,900
23,000
1,200
3,400
11,000
3,000
25,000
1,300
*The proceeds from asset sales came from three separate transactions during 2015:
–
On November 20th, Neal sold 450 shares of XYZ Corporation stock for $15/share. Neal had
originally bought those shares on February 5, 2015 for $8/share.
Also on November 20th, Neal sold 500 shares of MNO Corporation stock for $65/share. Neal
bought those share on March 21, 2009 for $69/share.
On December 15th, Norah sold a piece of land that she inherited from her father’s estate. She
received $21,000 of proceeds. Norah’s dad paid $6,000 for that land in 1990 and on the date of
her father’s death it was worth $19,500.
You work as a tax professional at UNO, LLP. The Jones’ have hired you to prepare their 2015 tax return.
The firm’s address is 1040 South 102nd Street, Omaha, NE 68166 and their EIN is 14-7598461. Your
PTIN is P11223355.
Hints:
•
•
•
For Form 8949 page 1, check box A and there are no adjustments to gains or losses. On page 2,
check box D and there are no adjustments to gains or losses.
Neither Neal nor Norah are covered by a retirement plan at work or through self-employment.
Disregard any credits.
Please Note: As the syllabus indicates, these are individual projects not group projects! You are free to
utilize the textbook and the form instructions for help. If you need additional assistance feel free to
contact me. Also, projects should be completed manually using tax forms available on the IRS website
www.irs.gov. The website has some forms available that can be “filled-in” by the user. No tax
preparation software such as TurboTax may be used. No other forms are necessary to fill out except
for what is required above.
